From Capital & Conflict (GBR) – This week’s podcast will be up early (probably tomorrow or Thursday). My gold friend John Butler was in. John knows a lot about gold, the gold standard and money. We discussed this particular report in a great deal of detail.
If you don’t have time to read it, I’ll sum it up for you: The Bank of England is much further along than we know in planning for a digital legal tender based on blockchain technology. This new money would allow the bank to more quickly execute policies like negative interest rates, quantitative easing, and even cut out commercial banks from the process of creating new money.
That last part is key. Commercial banks remain bloated with debt, especially government debt, which they’ve loaded up on since 2009. In a slow-growth economy, those banks are reluctant to the bidding of their central bank brethren and increase lending. If you have RSCoin – a “distributed ledger technology” designed for the bank by researchers at University College London – you can’t create money without banks!
This isn’t exactly helicopter money. But that’s kind of the point. It’s not cash. You don’t have to drop it from helicopters. You create it with keystrokes. Suddenly, people have more “units” to spend in their bank account. It’s a convergence technology. What do I mean by that?