Friday, November 27, 2020

Yes you can

BIS talking sandbox

The technologies underlying money and payment systems are evolving rapidly. Both the emergence of distributed ledger technology (DLT) and rapid advances in traditional centralised systems are moving the technological horizon of money and payments. These trends are embodied in private “stablecoins”: cryptocurrencies with values tied to fiat currencies or other assets. Stablecoins – in particular potential “global stablecoins” such as Facebook’s Libra proposal – pose a range of challenges from the standpoint of financial authorities around the world. At the same time, regulatory responses to global stablecoins should take into account the potential of other stablecoin uses, such as embedding a robust monetary instrument into digital environments, especially in the context of decentralised systems. Looking forward, in such cases, one possible option from a regulatory standpoint is to embed supervisory requirements into stablecoin systems themselves, allowing for “embedded supervision”.

do the thing in boldface.  

It can be enforced, but the sandbox needs authorization, it all ties back to a voluntary contract. (The one exception is double spending, that is a built in). This is very specific, sandbox is neutral toward contracts as long as they are provable. 

The loud and clear message to the BIS is to support embedded contract enforcement, support the Core of the Unknown, Spectre himself.. Walk on the wild side, cross the Overton, think out of the box, connect the dots.

Due Process is a legal requirement in sandbox, we cannot enforce government contracts without a voluntary signature. The one exception, no double spending is a result foundry security of the unknown core.

Example of an embedded regulation. A trading sequence has a path yielding gains.  Government can include a provable branch that records the taxes due.  Then government's public signature will reveal the contract up to the point that taxes are due.

Those who use other trading scripts are observable on the boards, and hunted down, the same as always, but the cops contracted forensic bots. 

But money is not the problem, we could get by with just petty cash.  The problem is cutting the chord on the Specrre Core. That is a very scary thing to do with a bunch of superstitious humans, and cutting the core does in fact have large implications.

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