Central Banks Haven’t Won Yet

Governments  run money through nation states, and behind government are powerful families. That is how money works. It is a monopoly enforced by government and central banks among others.

Today this is less true than it used to be because of cryptocurrencies. Cryptocurrencies are private money, not quasi-public money such as that offered by nation states.

The cryptographic nature of such money and lack of centralization sustains cryptocurrencies. But now big banks are getting together  to oust cryptocurrencies altogether.

No doubt they are doing so at the behest of central banks that cannot issue real crypto without losing the special privileges that they currently have received from governments.

They will issue digital currency immediately convertible into dollars and other national currencies. But it is not clear how well this will work. People are using alternative money like bitcoin because it is alternative.

The new government money will just be a midpoint between truly private money and government currency that is completely, horribly transparent. Eventually it will have very few of the attributes of truly private money

A big fight is coming as we have warned numerous times now. It is not clear who will win. That’s because previously there were few alternative to government monopoly money. But now there are.

And people may not be willing to give them up. Especially when the alternative is fully transparent, digital money that reveals every part of your financial life at a glance.

Stay tuned.

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