Central Banksters Jockey for Control of Digital Currency

Computer scientists have devised a digital crypto-currency in league with the Bank of England that could pose a devastating threat to large tranches of the financial industry, and profoundly change the management of monetary policy.

The proto-currency known as RSCoin has vastly greater scope than Bitcoin, used for peer-to-peer transactions by libertarians across the world, and beyond the control of any political authority.

The purpose would be turned upside down. RSCoin would be a tool of state control, allowing the central bank to keep a tight grip on the money supply and respond to crises. It would erode the exorbitant privilege of commercial banks of creating money out of thin air under a fractional reserve financial system.  …

RSCoin may be irresistible for central banks. Dr Danezis said it is allows them to turn the money tap on and off with calibrated precision, and lets them track the sort of counterparty liabilities that nearly blew up the financial system during the Lehman crisis. “There would be instant visibility. They could react very quickly in an emergency, ” he said.

Ultimately it could achieve some of the objectives of ‘narrowing banking’ proposed by Adam Smith, or the Chicago Plan put forward by US economists in the 1930s – but never enacted – to transfer control of money creation from private banks to the state. Arguably, this would make the financial system safer and less prone to boom-bust cycles. …

http://www.telegraph.co.uk/business/2016/03/13/central-banks-beat-bitcoin-at-own-game-with-rival-supercurrency/

The Big Lie strikes again.  It will centralize counterfeiting and the manufacturing of business cycles into the profit-driven private owners of the central bank.  Yet another monopoly game.

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