from Silver Doctors:
The Fed wants to take every last shred of our privacy and force us into negative interest rates for good measure. Here’s an update on their War on Cash…
On Saturday, the St. Louis Fed fired off this Tweet:
As if that’s a good thing.
It’s not.
In a possible future, cash disappears and central banks issue electronic money for all https://t.co/wfLV1sLtmL pic.twitter.com/FOUvqxwpe9
— St. Louis Fed (@stlouisfed) 21 April 2018
Here’s just their own abstract about it (bold and (red comments) added for emphasis):
We characterize various currencies according to their control structure, focusing on cryptocurrencies such as Bitcoin and government-issued fiat money. We then argue that there is a large unmet demand for a liquid asset that allows households and firms to save outside of the private financial sector (God forbid they say gold or silver, which is both liquid, and outside the system). Central banks could offer (as in commandeer/seize control of) such an asset by simply allowing households and firms to open accounts with them (I’m actually speechless with this). Finally, we conclude that a central bank will not issue cryptocurrencies in the sense of a truly decentralized (It’s not truly decentralized already – you still have to jump on the given crypto’s network for verification of transactions) and permissionless asset that allows users to remain anonymous (uh, it’s not annonymous as it is).
Jason Burack has put together a nice little video of what this could mean going forward:
Granted, it’s a trial balloon – it’s a proposal.
