Digital Cash

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medialAxis"Our position on cryptocurrency is that blockchain technology is a very interesting research area, but Bitcoin has a variety of risks, limitations and design flaws that prevent it from addressing the core systemic problems with our monetary system."AIUI, the idea behind bitcoin was, at least in part...

3 weeks ago

Zack, Positive MoneyOur position on cryptocurrency is that blockchain technology is a very interesting research area, but Bitcoin has a variety of risks, limitations and design flaws that prevent it from addressing the core systemic problems with our monetary system. These include malicious mining strategies from withi...

3 weeks ago

Zack, Positive MoneyJust to clarify, Positive Money does not propose a cashless society. Physical cash should remain in circulation as long is there is a demand for it. What we propose is that ordinary people should also be able to hold cash in digital form in accounts at the Bank of England.Please see our Digital Cash...

3 weeks ago
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medialAxisA really interesting (IMO) talk[1] by Simon Dixon, of BnkToTheFuture.com, on blockchain and banks. If you haven't the time, or the inclination, to view it all you can jump to 30mins to hear his predictions of how things may pan out. For instance, banks becoming more like P2P lenders but still with t...

15 hours ago

Vince RichardsonYes one gets te feeling that this is the state coming in to join the party.My guess is that they will eventually want to be the only guest,it would be hard to control the money supply if you don't control the money issue.So the likes of Bitcoin will likely be banned or restricted in some way....

last month

SimonThe commercial banks issuing credit model, to get money into the economy, is not sustainable given ageing societies, and automation. It requires growing younger populations to continue to take on more debt, to help pay for pensions and people not working. Creaking public health care, and declining s...

last month
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Bank of England: Digital Cash – the end of monetary policy as we know it?

bank of england digital currency

Last week the Bank of England released a key paper that analyses the 'macroeconomics of central bank issued digital currencies'. The paper essentially asks what would happen if people could hold money electronically at the central bank, instead of having to use bank deposits (created by commercial banks). We wrote about it briefly last week but we're still working through the fine details of the 69-page mathematical model to figure out the implications for our work. In the meantime, the Bank of England's staff blog has just released a much more accessible discussion of the issues:

WilliamAnd...hard cash in the hand cannot be tracked so readily...

September 2016

WilliamEntirley true...but...'hard cash' in your hand cannot confiscated when convenient...

September 2016

Vince RichardsonOK I ve no objection to that,far as I am aware that is what we all want.It has to be open and honest so everyone can see what is going on and where and how that money is created.Well in simple terms anyhow...

July 2016
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Bank of England releases key paper on digital cash and blockchain

Screenshot 2016-07-19 13.36.01

The Bank of England has just released its most significant paper yet. Macroeconomics of central bank issued digital currencies, by John Barrdear and Michael Kumhof, discusses the consequences of the central bank making a digital form of cash available to the general public, so that they are no longer forced to use bank deposits to make electronic payments:

Dwain DibleyWhat, are you brain damaged?Post the specific section in law that grants to the Fed and the U.S. banking system the power to create money in the form of bookkeeping entries and post the law that designates the debt based credit (bookkeeping entries) they do create as being a U.S. legal tender money,...

December 2016

Marco SabaMaybe a crowd-funding can help ?...

December 2016

Marco SabaI suggested to the Bank of England to redact a paper clarifying the matter but the clowns there answered that they don't have enough resources: http://leconomistamascherato.b......

December 2016
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Bank of England: UK banks to lose their status as ‘gatekeepers’ to the payment system

Gatekeeper to the payments system

In a significant breakthrough, the Bank of England (BoE) has just announced it will be adopting a policy change that Positive Money has been arguing for over the last 2 years. The BoE will finally allow non-bank ‘payment service providers’ (PSPs) to hold accounts at the BoE, so that they can compete with existing banks to provide current (checking) accounts. This will break the stranglehold that large UK banks have over the provision of payment accounts - and represents a step towards further changes that would limit the ability of banks to create money.

MarkBut BenAt least there will be more choice of conditions for a loan. A client can approach a PSP who has an affinity for the clients loan. In that they will take a genuine interest in the success of the loan, producing a better service or product that the loan was for.YoursMark ValenteGet Outlook for...

July 2016

Ben DysonNo, they currently have to back their customers' funds with deposits at a commercial bank, and aren't allowed to hold loans or other risky assets on their balance sheet. So unlike they can't create new money by creating new deposits backed by new loans. ...

July 2016

Ben DysonCarney said that they would make the accounts available 'over time', probably as they redesign their RTGS settlement system. So unfortunately I don't think the accounts will be available within the next 12 months, but it's certainly worth contacting them now to express an interest. Ben...

July 2016
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