One World Currency: BIS on Moving from Bitcoin to Digital Central Bank “Money”

Thursday, September 21, 2017
By Paul Martin
September 21, 2017

The dots are connecting for nothing less than central banker total-control utopia. It’s utterly disgusting, downright gut-wrenching, and it has absolutely nothing to do with Bitcoin moving forward…

Speech by Carl-Ludwig Thiele via the BIS

Ladies and gentlemen

I am delighted that the Official Monetary and Financial Institutions Forum has invited me to share my thoughts with you here today. The OMFIF – an independent think tank for central banking, economic policy and public investment – has made quite a name for itself. Independence, especially, but also freedom from political responsibility, is a precious asset.

London has always been one of my favourite destinations, and it is an ideal venue for discussing new virtual currencies. Not just on account of London’s immense importance as a financial centre, but mainly because of the City’s understanding of markets and market trends.

This understanding encompasses the major role played by central banks and financial market infrastructures. It was, after all, Walter Bagehot, who, in his 1873 treatise Lombard Street, laid the very foundations of how we see central banks nowadays.

In this work, Walter Bagehot gives the following characterisation of London’s bankers:

“The name ‘London Banker’ had especially a charmed value. He was supposed to represent, and often did represent, a certain union of pecuniary sagacity and educated refinement which was scarcely to be found in any other part of society.”

1. Trust – the foundations underpinning our money

That quote is taken, as I said, from Bagehot’s book Lombard Street: A Description of the Money Market, in which he also mentions the main questions facing the financial system:

“Credit means that a certain confidence is given, and a certain trust reposed. Is that trust justified? And is that confidence wise? These are the cardinal questions. To put it more simply, credit is a set of promises to pay; will those promises be kept?”

That brings us to the nub of the matter. Money, ladies and gentlemen, is all about trust. The key to a stable currency is trust.

The original promise of Bitcoin was to forge a “trustless” payment system – that is, one that required no trust. I quote from Satoshi Nakamoto’s paper from 2008 (Bitcoin: A Peer-to-Peer Electronic Cash System):

“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

The Rest…HERE

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