The issue will be that central banks want all money flow cleared with a regulated clearing house. Even still central banks are stuck with a immutable fact, the new cards will hold secure digits, banks will ultimately insist on that security.
So, the pure cash solution is peer to peer, single shot exchange. How do we avoid the government rule? The governments position here is tenuous, because we can write a clearing house function and place it at the checkout counter, let it duly report balances of zero.
So, ultimately, Congress will have to mandate an individual requirement, to maintain regulated deposits; or accept its own budget responsibility. Congress will force a deposit mandate on the individual, but the technology is off the hook here. This conflict is between individuals and their representative.
Clearly, we are bound to produce this technology, I would not be surprised to hear announcements at any time; all the components in place.
The efficiency imperative forces
This is not rounding the edge of some market,this is dropping the entire cost of finance down to absolute zero.. You can see the market size, just estimate the central bank balance sheets, all of which come under bot organization. That is some 10 trillion in assets right there.. The total derivative industry flows another few trillion, as well as the entirety of commercial banking..
It really can't be avoided, being able to handle the entire collection as a functional probability distribution is so overwhelming, across he board. Risk management, inventory flow, and very liquid price adjustment. A system that can estimate its global valuer in reasonably short order. Something like a ten fold plus decrease in transaction times everywhere.
The low transaction costs make almost anything priceable. Once we have secure digits, its the peer to peer, the card touch, thy makes everything a priced transfer.
No comments:
Post a Comment