by Summary:
More than forty years ago, Nobel laureate Friedrich von Hayek published a small book in which he called for the “denationalization of money.” For him, high inflation rates in all countries were proof that states were abusing their monopoly on issuing banknotes, and that only private money in competition could guarantee stable money. Hayek was more concerned with the regulatory principle of competition than with the question of how a competitive monetary system could be concretely shaped. The success of Bitcoin and other cryptocurrencies today shows that there is indeed a market for such a private issue of money. It is however more than questionable whether a system with private currencies can actually replace the state-organized monetary systems and whether in the end a stable monetary
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Mike Norman considers the following as important: cryptocurrencies, denationalization of money, monetary systems
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More than forty years ago, Nobel laureate Friedrich von Hayek published a small book in which he called for the “denationalization of money.” For him, high inflation rates in all countries were proof that states were abusing their monopoly on issuing banknotes, and that only private money in competition could guarantee stable money. Hayek was more concerned with the regulatory principle of competition than with the question of how a competitive monetary system could be concretely shaped. The success of Bitcoin and other cryptocurrencies today shows that there is indeed a market for such a private issue of money. It is however more than questionable whether a system with private currencies can actually replace the state-organized monetary systems and whether in the end a stable monetary
Topics:
Mike Norman considers the following as important: cryptocurrencies, denationalization of money, monetary systems
This could be interesting, too:
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More than forty years ago, Nobel laureate Friedrich von Hayek published a small book in which he called for the “denationalization of money.” For him, high inflation rates in all countries were proof that states were abusing their monopoly on issuing banknotes, and that only private money in competition could guarantee stable money. Hayek was more concerned with the regulatory principle of competition than with the question of how a competitive monetary system could be concretely shaped.
The success of Bitcoin and other cryptocurrencies today shows that there is indeed a market for such a private issue of money. It is however more than questionable whether a system with private currencies can actually replace the state-organized monetary systems and whether in the end a stable monetary system will emerge....Denationalization of money would be the end of national sovereignty and thus the end of the modern national state and the Westphalian world order, replaced by a global market society. Whether this would be utopian or dystopian depends on one's assumptions and value system.
INET
The Mechanics of Cryptocurrency
Peter Bofinger | INET Global Commissioner
ht/ Yves Smith at Naked Capitalism
See also
NATIONAL CONFERENCE OF STATE LEGISLATURES BLOG | NCSL BLOG
CRYPTOCURRENCY: CURRENCY OF THE FUTURE OR JUST A FAD?
Heather Morton, program principal in Fiscal Affairs, covering financial services issues for NCSL