The national governments should perhaps worry about this.
A corporate currency would be tied to the corporations products. So and Exxon “Petro” or Amazon “Booker” would, in effect have an intrinsic value based upon the value of the product being marketed because corporations could not issue more of the currency than could be redeemed for the products they provide.
That would make them safer currencies in many ways.
Quite an interesting story.
Unfortunately in my view, all the competing entities he mentions are also in league with the progressives.
Government needs to be the coiner of money.
The exact trouble with governments that have central banks, like the Fed, is that money creation has been turned over to the private sector, specifically, a very small group that engineered the establishment of “central banks”.
That small group now is loan shark, I mean, lender, to the government, instead of the government creating money that it has every right to.
And now the people find their government beholden to this money-monopoly, allowing their associates to puppetmaster the whole country.
Any government that does not create its own money is forced to borrow when reaches the limits of taxation and finds that it still needs more money. And the lender certainly will do everything he can to make sure the government outspends its taxing capability.
Of course, governments and central banks will try to stop it. duh They wont give up their monopoly over money without a struggle. double duh A virtual currency will never be legal tender. credit cards are legal and virtual But the online universe is very hard to regulate. Governments havent managed to stop spam, no incentive or pornography, lost first amendment battle and I wonder how much porn the Chinese have access to? or terror chat rooms, and give up their easy to get publicity entrapments? or any of the other online activities they dont like. I wonder how megadownload owner is feeling? How's online poker working out for you? There is little reason to imagine they can prevent virtual currencies circulating either.
Microsoft has already started something similar to their own currency, with MS Points.
However if the Amazon “Money” holds value better than the Federal Reserve notes, then it will have great appeal. People can easily redeem Amazon Money for Dollars as they need to pay taxes, etc
You disregard the largest export nation on earth?
China trade now bigger than US
It’s wildcat banking all over again.
He overlooked PayPal.
PayPal is truly the upsetter technology use. The currency is in reality a PayPal loan. Paypal issues a short term loan that effectively adds to the money supply. Your purchases via Ebay are made on credit. Trade is facilitated with money that is created by Pay Pal. The money doesn’t exist except on the electronic PayPal ledgers.
The interesting thing is that PayPal has gone international. Your direct purchase to a Hong Kong or Taipei merchant is paid via payPal, the shipment is made via UPS or US Mail assigned a tracking number. Shipment is made when the shipping document is recorded and money actually transferred when the delivery receipt is made. Currency differentials are absorbed into the PayPal ledger system and are transparent to the buyer and seller.
Pay Pal is now duplicating in seconds by the two parties to the transaction what the big international banks do in and xpensive and time consuming manner.
Orlin G Grabbe was correct but about 10 years ahead of his time. His Rand could probably gain transaction today.