Bankloch

Central banks dominate headlines worldwide as they exercise immense influence over the global economy. Using various monetary tools — such as adjusting interest rates, conducting open market operations or employing quantitative easing — central banks aim to steer their economies toward stability and growth. Despite their critical role, many remain unaware of the fundamental functions and complexities of these institutions. Central banks , often known as Reserve Banks, National Banks, or Monetary Authorities, form the bedrock of a nation’s financial system. These public institutions manage a country’s currency, money supply and monetary policy to ensure economic stability and public confidence in the financial system. Unlike commercial banks, central banks hold a monopoly on modifying the monetary base, giving them unparalleled authority to shape the financial landscape. Beyond monetary policy, central banks supervise and regulate financial institutions to maintain system stability, pre...

As our world becomes increasingly digital, the   concept of "currency" or "money" continues to evolve and grow more complex . Historically, currency was introduced to streamline trade. Rather than exchanging goods directly — a process with many practical challenges — currency served as a widely accepted intermediary. In its early forms, currency had intrinsic value, often crafted from precious metals. Over time, however, its value came to   depend on trust : if we collectively believe a note is worth 50 EUR, it holds that worth. Today, as   money becomes more digital , this trust is harder to define. Fiat money, for example, is backed by governments, which helps support trust, particularly in developed nations. In contrast, cryptocurrencies derive trust from software protocols and, in some cases, from the companies behind them. Certain cryptocurrencies, like stablecoins such as USDC (managed by Centre) or Tether (managed by iFinex), have corporate entities backing t...