23 Jan '14, 5am

How Bitcoin Plays Into the Hands of Central Bankers and Will Facilitate the Use of Negative Interest Rates

Central bankers, after all, have had an explicit interest in introducing e-money from the moment the global financial crisis began… Bitcoin has helped to de-stigmatise the concept of a cashless society by generating the perception that digital cash can be as private and anonymous as good old fashioned banknotes. It’s also provided a useful test-run of a digital system that can now be adopted universally by almost any pre-existing value system. This is important because, in the current economic climate, the introduction of a cashless society empowers central banks greatly . A cashless society, after all, not only makes things like negative interest rates possible, it transfers absolute control of the money supply to the central bank, mostly by turning it into a universal banker that competes directly with private banks for public deposits. All digital deposits become base m...

Full article: http://www.nakedcapitalism.com/2014/01/bitcoin-plays-hand...

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