Professor Duffie said the public should not be misled by the relatively still-low levels of adoption of decentralized cryptocurrencies such as Bitcoin (BTC); nor should they take the pushback against Facebook’s Libra as the sign of a moratorium on major private initiatives.
“The future is coming, and it will be very disruptive to legacy banks that don’t get with the program,” he said.
Whether it in the form of a dollar-backed stablecoin, a Facebook product, or a central bank digital currency, the benefits of the digital asset model will likely mean that banks lose their access to lucrative low-interest deposits within ten years, he said, adding:
“New payment methods will trigger greater competition for deposits. If consumers have faster ways of paying their bills, and merchants can get faster access to their sales revenue without needing a bank, they won’t want to keep as much money in accounts that pay extremely low interest.”
He is right but the direct cause is misstated. The issue with crypto is automated portfolio adjustment , automating the shadow bankers. We cannot automate dollar pricing until we have a stable coin. once we have auto pricing we have singularity.
And this:
Maybe reality has finally started to sink in. Zero Hedge captured the stark state of the “system” by quoting an article from the Dutch Central Bank:
An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that “if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”
Why gold? In the USA gold is the only system the legally allows MMT rebalancing. The 14th amendment basically outlaws MMT moments, hence it has the opposite effect, it forces our central banker back onto gold, like both Nixon and FDR.
Look at bitcoin prices:
They jump by a grand, or bitcoin just moved about 25 billion in money. This would be insiders knknowing advanced information about central bank actions.
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