Banning Bitcoin might have the unintended consequence of causing the average citizen to think a lot harder about why governments have a monopoly on currency in the first place.
Chartalists are right: debt preceded money. But that fact doesn’t do the work they think it does.
There are two reasons monetary policy cooperation might backfire.
The high price of bitcoin serves as a reminder of its rigid supply, which might ultimately be its undoing.
On October 3, the Committee for Monetary Research and Education held a dinner in New York City featuring four distinguished speakers on the topic of blockchain technology versus fiat currency.
In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in the context of the 2008 crisis.