Jim’s Mailbox

Posted at 12:04 PM (CST) by & filed under Jim's Mailbox.

Courtesy of JB. We have suggested this from the beginning, the current cryptocurrencies are a dry run for sovereign cryptocurrencies …but they will still need to have some sort of backing to have value.  Just because you can “account” for something does not change whether the subjest has real value or is simply air…

Bill

Should the Fed Create ‘FedCoin’ to Rival Bitcoin? A Former Top Official Says ‘Maybe’
May 4, 2018

Many enthusiasts of Bitcoin and other cryptocurrencies are motivated by deep skepticism of the central banks that control the world’s money supply.

But what if central banks themselves entered the game? What would happen if the Federal Reserve, or the European Central Bank or the Bank of Japan used blockchain technology to create their own virtual currencies? Besides, that is, having some cryptocurrency fans’ heads explode?

A former Fed governor — who was also a finalist to lead the central bank — thinks the idea deserves serious consideration.

“Most central banks have a view that these crypto-assets are clever, like guys in the garage did it and it’s kind of cool, or risky,” given the potential investor losses and widespread fraud, said Kevin Warsh, who was a governor at the Fed from 2006 to 2011 and was a top contender to become its chairman late last year when President Trump instead appointed Jerome Powell.

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