The world’s central banks are asking governments for help in stimulating the global economy, something at which they have failed.
At the three-day annual Jackson Hole Economic Symposium in Wyoming, heads of the US Federal Reserve, the Bank of Japan, and the European Central Bank all met to discuss ways of meeting the current economic challenges.
The consensus is that they need help. Without additional government intervention, they said, central banks would be unable to rescue the global economy through monetary policy alone.
According to Jose Rodriguez, VP of payments for the Mexican cryptocurrency exchange Bitso, the government’s management of the economy is handled in a way that incurs unnecessary risks for people.
“Giving the power and decision over money, your income, your savings and therefore your life and future is a great responsibility. Currently, the way the government handles the economy using a very limited number of people is risky when trying to move the value of their notes and coins like interest rates, money emission, debt etc.”
Central banking not the answer to economic problems
While the heads of the world’s top central banks mull over the inadequacy of their capabilities to strengthen economic growth while asking for further assistance from governments, could it be that central banking, as well as increased government action, is itself part of the problem instead of the solution?
Susanne Tarkowski Tempelhof of Bitnation thinks that central banking itself is a problem, and that further government intervention will not be the solution to the global economy’s ills.
“Central bankers are part of the problem through attempting to control currencies, adding inflation, and stifling markets. The only way consumer confidence can be restored is through a boosted economy, and that won’t come through any government intervention. To the contrary, economies may reboot despite government interference, through peer-to-peer free market technologies such as cryptocurrencies and encrypted communications.”
Bitcoin succeeds where central banks fail
According to Rodriguez, while the plea for assistance from central banks represents their inability to properly aid a country’s economic development, Bitcoin can succeed at providing effective financial solutions where they fail.
He explains to Cointelegraph:
“Economic management from central banks lacks transparency and democratic decision making. Bitcoin and cryptocurrencies have created transparent, powerful, and democratic financial and economic solutions which will continue to evolve and create true financial inclusion worldwide. They will achieve the final goal of making the economy grow, stimulate economic activity, and create trade and options for people to choose which system and currency to use according to their convenience - a goal for all countries and central banks.”