TAFKAS will defer to the wisdom of the Doom Lord, but there was a very interesting piece in today’s Wall Street Journal:
TAFKAS is far from a crypto currency expert, but he has done a few transactions and broadly understands the logic of the system(s).
There is no doubt that government and central banks don’t like crypto-currencies – because they can’t control them and they can’t be used to steal from citizens through things like money printing and negative interest rates.
So there is discussion amongst the central planners, sorry central bankers to develop “crypto fiat currency”. Why:
The benefits of digitization could be myriad. In addition to faster and cheaper money transfers across borders, a survey conducted by the International Monetary Fund found that central banks are looking at benefits like lower costs, more efficient monetary policy, blunting competition from bitcoin and its peers, and offering a risk-free payment network to the public.
Blunting competition. Efficient monetary policy. You know, a government sponsored means to take money and otherwise discourange savers.
But this WSJ article had some other corker quotes:
The U.S. has been wary about the growth of cryptocurrencies. Federal Reserve Chairman Jerome Powell said this month that consumers have many payment options already. Moreover, he added, the cybersecurity risks involved with a digital currency are “quite daunting,” pointing out that if hackers gained access to the system, they could siphon off money from the electronic vault.
Hackers could siphon off money. Ha! You mean like central banks do right now?
Is this a concern about the integrity of the system or textbook lobbying and fear mongering to protect an entrench state monopoly?
And there is this obvious statement:
“No central bank wants the currency to be something it doesn’t control,” says Jeremy Stein, a Harvard University economics professor who served as a Fed governor from 2012 to 2014. “In the extreme, if everything in the world is priced in Libra and not in dollars, the U.S. cannot set monetary policy—because setting interest rates in dollars, who cares?”