Can a currency banker go bankrupt?

The law as written for central bankers seems to be yes, according to former Atlanta Fed president:

Credit Writedowns: Former Atlanta Fed President William Ford says, technically, yes, the Fed can go bankrupt. He argues that the Fed’s balance sheet is highly leveraged as a result of quantitative easing expanding its balance sheet. The result is that the Federal Reserve is thinly capitalized despite its having just transferred a record $80 billion in profit to the US Treasury. Ford says that this creates a situation in which the Fed would be technically insolvent on a mark-to-market basis if interest rates were to go up 1%.

Can an old style central banker need bailing out by government?

I have no idea what bailing out means in this sense.  Any recapitalization of a central banker is done through law change, and that makes the law the central bankers capital.  If it is the law that restricts the banker from printing its own tender, then any recapitalization will essentially be a law change allowing it to print some tender.  The idea that collecting taxes to fund the central banker is a law change.  The idea of allowing the central banker free seigniorage access is a law change.  Both effects change the price level on the taxpayer and are equivalent, or as equivalent as government wants to be. And its all defined by what law government makes. If the economy has completely reverted to some other currency and no longer pays taxes in central bank currency, then there is no government, hence they both go bankrupt.

How about a web bot currency banker?

This is the  relevant question.  Can a web bot currency banker operating digital currencies go bankrupt?   Well, if its currency users quit completely using its currency.  The web bot would no longer be able to pay for the 5 Milli Tesla (I think I have that) of of magnetic flux needed for its existence on a disk.  That is the flux of a refrigerator magnet.  Now the web bot, which is not in the business of pricing disks, will have to trade its currency units for disk space, in order to survive.

But it is even less risky than that.  Mostly when a currency bot loses its customers, it does not go immediately bankrupt, rather it is move to the trash area of the disk, and generally survives for years in the bankruptcy queue.


Experts on banking theory

I tire of folks who claim expertise in the art of running a printing press, then always refer to their expertise in predicting what a bunch of yahoo Congress might do.  Monetary theorists should distinguish between the science of stacking paper and the science of predicting Congress.