Cash concerns

On January 21, the Bank of International Settlements released a press statement stating that a group of countries’ Reserve Banks were investigating the potential case for central bankcreated digital currency in their home jurisdictions.

This is nothing new.

The Positive Money Campaign globally has been proposing a system of managing countries’ money supplies under which Reserve Banks create all their countries’ money (coins, notes and electronic) debt-free.

This type of publicly created money is known as Sovereign Money.

The decision on how much or how little money needs to be created would be taken by countries’ independent body called the Monetary Policy Committee (MPC). The MPC would be completely separate and insulated from any kind of political control or banking industry influence—in other words, the elected government would not be able to specify the quantity of money that should be created.

Donald Trump has made it clear that he wants to remove private ownership from the Federal Reserve Bank of America and join it to the treasury to become America’s MPC.

With a global digital currency reset, I don’t see coins and notes being in the picture.

After recent debacles like pallets of cash going to Iran and the Ukraine, a new monetary system needs total transparency and accountability so cash will be removed from the system.

The system will be run through blockchain technology and backed by a tangible money class like gold and silver.

Going from un-backed electronic currency to digital backed currency demands transparency, as will the taxation system.

Steve Laurence, Egmont Village