Note from the Publisher: Folks, we typically try to refer our readers to interesting but relevant reads from other publishers who may not be in the mainstream, but today we have to digress a bit – first with a piece referenced in Forbes about a new Ether-based ETF – and now a VERY interesting article appearing in today’s Wall Street Journal (7/20/16) entitled “Should Nations Issue Bitcoin?” In fact there is a firm that was founded in 2015 – eCurrency Mint – which has the directive to work with central banks worldwide on the development of sovereign digital fiat currencies for their countries.
And while the above-referenced article is not currently online at WSJ.com at time of publication, we did find another interesting article posted yesterday referencing a research paper that Bank of England recently released advocating that central banks issue their own digital currencies. It would appear that the topic of digital currencies moving into mainstream currency markets via central banks is one that we all have to get familiar with – and quickly.
“When it comes to bitcoin and digital currencies, central banks might be considering the adage: “If you can’t beat them, join them.”
In a research paper published on Monday, economists at the Bank of England advocated that central banks issue their own kind of digital currency. Using the U.S. as a case study, they argued it could give a permanent boost to the economy of around 3%, as well as providing policy makers with more effective tools to tame financial booms and busts.
BOE economists John Barrdear and Michael Kumhof write that “reductions in real interest rates, distortionary taxes, and monetary transaction costs” would boost the economy.”
Read Full Article at WSJ.com (Note-link may only be available to online subscribers)