Addressing lawmakers in London last month, Governor Mark Carney outlined why, explaining the risks of a central bank issuing its own digital currency that would allow everyone across the country to have an account at the BOE. That, he said, creates a situation whereby in times of trouble you could have an “instantaneous run” on commercial banks as Britons switch to their BOE account for safety, with financial-stability repercussions.
This is what we deal with, central bank governors who do not have the full story on sandbox. What Mark really means is that only the TBTF get the safety of the central bank. So say it, Mark Carney, say the correct theory and we can duplicate the theory in the pits, we are not politically correct around here.
Central bankers should note, we can make digital bear notes out of fiat money.
Humans can anonymously hold their central bank cash on hold, and issue their money under a watermarked system, digital bearer notes. Technology can do this because technology can make ringed fence dark pools which meet sandbox requirements.
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