We repeat it to you: money as we know it is doomed to disappear, and very quickly. Finished the franc,
long live the cryptofranc. Forget the dollar, the world currency will live on the Web. The source of this revolution?
New information technologies sweeping away everything in their path.
What is a cryptocurrency? The definition proposed by Wikipedia, in its English version, is the
following: “A digital asset designed to serve as a medium of exchange, which uses strong cryptography to
making transactions safe, which controls the creation of additional units and which verifies transfers.
Cryptocurrencies use a decentralized control system in contrast to digital currency
central bank and central bank systems.” A lot of jargon but we can simplify. It's a
virtual currency that cannot be touched like bills and coins. Payments are safe because
encrypted. Payments in cryptocurrencies are made within a network on the Web. Volunteers
anonymous or algorithms determine whether the payer has the necessary resources before authorizing
the transfer. This decentralization, which resembles the existing payments which are made in cash, therefore
hand to hand, differs from bank transfers or other digitized means (smart card, telephone) which
pass through the banks and, if necessary, through the central banks.
While the use of cash is declining, sometimes rapidly as in Sweden or China, payments are made
more and more in virtual currencies because the corresponding currency only exists on accounts
electronics. In this sense, cryptocurrencies are nothing new. What sets them apart is the
decentralization and the absence of an issuing authority. Cryptocurrency supporters announce three
benefits. The first is anonymity. The second is greater efficiency, and therefore lower cost,
through decentralization. The last advantage is that these currencies are not issued by banks
central but by private agents, like the Libra project that a consortium led by Facebook
plans to launch. It should be noted that central banks, including the SNB, say they want to launch their own
cryptocurrencies.
These benefits are questionable, with one major downside. The advantage of anonymity seems weak
regard to the voluntary reduction in the use of cash, which is anonymous (unless you look for your DNA traces on
banknotes) in favor of other traceable means of payment. This advantage therefore has a dark side in the
as anonymity may be important for the wrong reasons.
Decentralization of payments is a plumbing thing. The question is whether it works
better than the current system. The answer is that we don't know. Experiments are in progress, while
central banks are improving the efficiency of their systems. As for the security of transfers, we cannot
not say that the current system is in trouble, everyone encrypts.
Finally, doing without central banks may enthuse some people, but it is the Achilles' heel of
cryptocurrencies. Whatever its form since gold and silver are no longer used, money has no
indeed no value in itself, think of tickets, just pieces of paper. What gives them value,
someone else will accept it. Why? Simply because everyone is sure of it. That
confidence comes from the State and its central bank for cash, but also for bank deposits which
worth only what each bank promises to reimburse in cash. Not only does the state guarantee part
deposits (up to 100,000 francs in Switzerland), but in addition it regulates and closely supervises
banks and, if necessary, it rescues failing banks. The currency is therefore worth what the State is worth. From
State-independent cryptocurrencies will only be worth what their creators are worth. If even the
highly supervised banks manage to take excessive risks, it is difficult to see what will prevent creators of money free from any constraint from yielding to worse temptations. The history of currencies
independent - in the form of tickets - is old and long, and it is not encouraging. It's not
not a matter of technology but of confidence and, on this aspect, nothing has changed. Who speaks of revolution?