Fed lied, banks died.
The current banking crisis is a result of the “transitory” lie. The Fed should have reacted to inflation six months earlier, and raised rates more gradually. Instead, they slammed on the brakes and now we have a car crash.
Why are Central Banks Interested in Digital Currency
A retail Central Bank Digital Currency (CBDC) would be a digital and universally accessible form of money issued by central banks. Objectives= anticipate the disappearance of cash, create efficient means of payment, and strengthen regulatory controls. Some central banks are testing blockchain/DLT frameworks while others use traditional software. The future CBDC solutions would probably combine design principles of traditional distributed systems with some of the design principles of blockchains and digital “wallets” to store cryptographic keys. It’s finally about creating new protocols with the infrastructure to enable the transfer of digital value.
Stocks, bonds, property or crypto: Which market is riskier?
With global interest rates heading towards zero and another round of quantitative easing underway, this may be the defining moment in a young investor’s life. Will you take the carrot and invest in property, bonds and a stock market at all-time highs — or dip into a volatile new asset class that may represent a paradigm shift for the next decade?
The Future of Currency in a Digital World
IMF F&D magazine explores the future of money, cryptocurrencies and central bank monetary policy in a digital world.
Central banks and digital currencies
Central banks and digital currencies: Speech given by Ben Broadbent, Deputy Governor for Monetary Policy, Bank of England at the London School of Economics on Wednesday 2 March 2016.
The Bitcoin Question: Currency versus Trust-less Transfer Technologyâ,OECD Working Papers on Finance,Insurance and Private Pensions,No. 37,OECD Publishing.
The financial crisis has led to a widespread loss of trust in financial intermediaries of all kinds, perhaps helping to open the way towards the general acceptance of alternative technologies. This paper briefly summarises the cryptocurrency phenomenon, separating the âcurrencyâ issues from the potential technology benefits. With respect to crypto currencies, the paper argues that these canât undermine the ability of central banks to conduct monetary policy.
