Since the end of the gold standard, Central Banks have been the undisputed masters of money. Admittedly, the latter is for the most part created by commercial banks, through the game of credit. But the central bankers steer this creation by determining, through their interest rates, the rent of money. They are also responsible for printing the banknotes. Does the bitcoin threaten this monopoly?
Not yet. Its use remains confidential. The high volatility of its exchange rate prevents it from fulfilling the three key functions of a currency: acting as an intermediary in trade, building up a store of value and embodying a unit of account for economic calculations. "But this will come", the bitcoin advocates say, promising that it will stabilize in a few years.
Will savers have confidence? Someday, maybe one day. After all, individuals in Zimbabwe are already rushing on the bitcoin as a safe haven to protect their economies from the inflation that is blowing in their country and to bypass capital control.
But make no mistake: Bitcoin is not just a form of money. It is based on a blockchain technology that encodes and lists all transactions in the e-foreign currency, within what is the equivalent of a giant database. This technology can revolutionize the way money transfers are made. Its traceability calls into question the usefulness of intermediaries such as banks.