This news comes as numerous countries also announced their intention to move from fiat to digital currencies moving towards a cashless society everywhere.
My message is that while the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively. In the case of new technologies – including digital currencies – that means being alert to risks … But it also means recognizing the wider social benefits from innovation and allowing them space to develop
With China and Facebook’s Libra announcing similar intentions, central banks and countries are in real danger of losing their grip on financial sovereignty.
A switch from public fiat towards private electronic money challenges the definition of money, the access to legal tender, the role of Central Banks, the financial intermediation model & the transmission of monetary policy. Central Banks have been under pressure to respond to the dramatic developments of cryptocurrencies & improve the efficiency of payment systems
MONEY FLOW-ERS - Image from ‘A Cashless Society - Benefits, Risks, & Issues/Understanding Central Bank Digital Currencies by the UK Institute & Faculty of Actuaries - READ HERE
It seems it is not only the ECB who feels this way, two weeks ago the Association of German Banks announced their plan for a digital Euro in great detail.
This powerful group of German Banks includes giants like UniCredit & Deutsche Bank who are in such a bad state they intend to replace 18k workers with robots.
The German private banks rate programmable digital money as an innovation with great potential that can be a key component in the next stage of the evolution of digitalization. We expect lawmakers & regulators to lay the necessary foundations for digital innovation, especially in the banking sector. The German private banks will play their part in establishing a sustainable, innovative monetary system. For this purpose, a programmable account and crypto-based digital euro should be created, and its interoperability with book money ensured
This leap to replace workers with robots and use digital assets will save billions but will also show the world a worrying trend that automation is upon us.
Deutsche Bank is so intrinsically connected to the world’s biggest banks, if it goes bang it would be a financial catastrophe and start the next financial meltdown.
BANK OF CARDS - Deutsche Bank is so globally connected that when it pops it will be disastrousFinally, some interesting developments regarding Trump and Fed chief J Powell who met yesterday to discuss financial woes and negative interest rates.
The FED and Trump have a colorful relationship of late with regular Tweets pushing for lower rates and J Powell claiming they have already done enough.
At the President’s invitation, Chair Powell met with the President and the Treasury Secretary Monday morning at the White House to discuss the economy, growth, employment and inflation. Chair Powell’s comments were consistent with his remarks at his congressional hearings last week. He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy.
Many outlets have reported recently on the exodus of wealthy investors from regular markets, moving their wealth out of the usual places into cash storage.
Moves like this especially into gold and now digital assets such as Bitcoin and XRP represent the fact that big money knows there is a giant crash on its way.
Sadly for those not invested in these assets, the coming global downturn will likely send trillions into the crypto asset space, the great wealth transfer people speak of.
Just finished a very good & cordial meeting at the White House with Jay Powell of the Federal Reserve. Everything was discused including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others