Wednesday, January 10, 2018

The real advantage here, for central banks

Greatly reduced TBTF costs, subsidies go down as the window of participants widen and liquidity auto managed.  

The central bank has the Coinbase window matching problem, in triplicate, it is a three color pit.   Sandbox does it simple, we have the three color base pit architecture, escrow routers, and intelligent cash card.

The central bank executes personal contracts with the triple accounters. The circle widens to anyone, willing to keep the extra liquidity. The systems combines easily when income taxes go automatic, the central bank offers a unique integration point.

There is no counter argument. There is no such thing as using technology to drive libertarianism or anything else, technology males what you do now, more efficient.

The other clue for central bankers, they are the central points where coordination failure happens.  They need to keep punching on this, make sure their system is fully integrated. No one is left out, especially central banking. When the central bank endorses the digital bearer note, then we have a deal.

The simplest three color pit works fine, it is the Coinbase model. Just apply a seigniorage fee when the rush on loans and deposits gets crowded.  Congress gets the seigniorage stream. The central bank offers immediate overnight loans to triple entry accounters, nice stuff in a world where the central bank supports bearer notes.  Given the potential gain, for our beloved Congress, why not? Who cares who your agents are, they all honor the equally valid contract you specify, in terms of liquidity on reserve. 

I throw in a sweetener.  The central bank gives its digital bearer notes a timeout.  At some point, the night must be re-registered. A great start, it lets all the escrow routers run freely, and they will be universally timed out, to the extent they trade central bank notes.

Summary: Intelligent cash card, three color central banking, digital bearer notes, with timeout.

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