Digital currencies such as Bitcoin will not be safe without government intervention and are likely to be counterfeited, according to a Bank of Canada report drawing on the lessons off private bank notes in the 1800s.
The paper examines what happened when both private bank notes and government issued notes were simultaneously in circulation, arguing that both share many characteristics with today’s digital currencies.
The authors conclude that before the Bank Act of 1890, private bank notes were only “relatively” safe and not a uniform currency. Meanwhile, government issued ‘Dominion’ notes were safe but were not a uniform currency until 1882.
Drawing lessons from this experience, the report argues that “well designed and managed private digital currencies could circulate widely but only with appropriate government regulation to ensure their safety, soundness, and uniformity”.
In addition, private digital currencies are likely to be counterfeited and are unlikely to be inflationary. And, while a central bank can always bet its digital currency into circulation, this will not necessarily drive out private alternatives.
Inspiring quest there. What happened after? Good luck!
Google
The information and facts mentioned in the write-up are some of the very best offered.
cash advance credit card pay day loans medical loan https://loansfor.cars – bad credit payday loans
Thanks on your marvelous posting! I seriously enjoyed reading it, you
will be a great author. I will make sure to bookmark your blog and
definitely will come back in the foreseeable future. I
want to encourage continue your great job, have a
nice day!
auto insurance quotes michigan auto insurance quotes texas aaa car insurance progressive car insurance
personal loan for bad credit personal loans for bad credit personal loans for bad credit personal loan bad credit
problem solving creative thinking problem solving problem solving