Drudge Retort: The Other Side of the News
Monday, September 19, 2016

Ellen Brown, CounterPunch: Bitcoin invented a blockchain technology which eliminates middlemen. It creates a unique record which is verified by thousands if not millions of computers. Central Bank Digital Currencies (CBDC) could replace the money created by private banks through "fractional reserve" lending, which constitutes 97% of today's money supply. Money would exist electronically outside of bank accounts in digital wallets, similar to cash. This means households and businesses would be able to bypass banks when making payments to one another. It cannot be borrowed, manipulated, or speculated with by third parties any more than physical dollars can be. CBDC is under the owner's sole control until transferred anonymously. Blockchain trades occur in "real-time," meaning collateral can be in only one place at a time. The Bank of England Bank of England Deputy Governor Ben Broadbent has proposed such a system and pointed out that a CBDC would not eliminate physical cash.

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Under this system, everyone would have an account at the central bank, a bottomless money supply not subject to a bank run. Blockchain won't just kill banks, brokers and credit card companies. It will change every transactional process you know. Simply put, blockchain eliminates the need for clearinghouse entities of any kind. And that means a revolution is coming, a fundamental sea change in the way we do business.

Changes of that magnitude usually take a couple of decades. But the UK did surprise the world with its revolutionary Brexit vote to leave the EU. Perhaps a new breed of economists at the Bank of England will surprise us with a revolutionary new model for banking and credit.

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Once cash is gone, they've got us by the short hairs.

#1 | Posted by SheepleSchism at 2016-09-19 02:43 PM | Reply | Newsworthy 2

a CBDC would not eliminate physical cash.

#2 | Posted by nutcase at 2016-09-19 05:08 PM | Reply

As predicted on Mr Robot.

spoiler alert!

It was E Corp's (Evil Corp) plan all along.

#3 | Posted by donnerboy at 2016-09-20 02:05 PM | Reply

..or just eliminate all the criminal bankers.

#4 | Posted by nutcase at 2016-09-20 04:05 PM | Reply

"Once cash is gone, they've got us by the short hairs."

#1 | POSTED BY SHEEPLESCHISM

The powers that be at the very top must have their eyes on Cash.

It has anonymity; and they hate that.

#5 | Posted by shane at 2016-09-21 03:38 PM | Reply

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