The Reset Original Video
This site has been discussing the possibility of the E Dollar to get us out of the monetary and economic mess we find ourselves in for a while now.
The E Dollar is simply a digital currency that has an exchange rate with cash. The central bank would set a rate at which old paper dollars would lose value against E Dollars held in a bank account. Under an E-Dollar system any physical cash removed from the banking system would lose value against the E Dollars retained in an account, this would effectively eliminate the zero lower bound. Central banks would be free to implement significantly negative rates.
The E Dollar would also a carry the added optional benefit of a gradual debt jubilee if the powers that be decided to allow old debt to remain denominated in old dollars.
When I saw the E Dollar as a possibility, Miles Kimball, an Economist from the University of Michigan, was the only other person around who was discussing it, and he had started presenting the concept as an option to central banks. In reality he was breathing life into an old concept with the digital age.
Economist Robert Eisler floated a similar idea during the Great Depression, only it was to be maintained with a ledger system by banks and retailers. The computer age makes the concept that much easier. I tacked on to his idea that the new E Dollar could be a cryptocurrency, eliminating the need for keeping the digital currency in a bank account, instead being maintained in digital wallets.
It is always easier to sell something new rather than something old and blockchain technology is certainly a relatively new innovation. The concept of electronic cash has actually been investigated by the government for some time, and I think the circumstantial evidence that bitcoin is being used as a beta test for such a system is compelling.
I’m no fan of this plan since it maintains the unbreakable covenant of shifting monetary systems of the last century, the banks and government gain power, but this is is precisely why such a concept has a following sea. Still when initially writing about the E Dollar I saw the possibility of it coming to fruition as pretty slim. After a string of recent events that possibility has increased exponentially.
In January we reported that central banks including the Bank of England, The Peoples Bank of China, and the Federal Reserve were actively pursuing E dollar concepts, and just last week a favorite to be named as the next Federal Reserve President, Larry Summers, joined a cryptocurrency research and media firm, Digital Currency Group.
The evidence that we may be looking at the E Dollar keeps mounting with a new Bloomberg story, Inside the Secret Meeting Where Wall Street Tested Digital Cash.
“On a recent Monday in April, more than 100 executives from some of the world’s largest financial institutions gathered for a private meeting at the Times Square office of Nasdaq Inc. They weren’t there to just talk about blockchain, the new technology some predict will transform finance, but to build and experiment with the software.
By the end of the day, they had seen something revolutionary: U.S. dollars transformed into pure digital assets, able to execute and settle a trade instantly. That’s the promise of a blockchain, where the cumbersome and error-prone system that takes days to move money across town or around the world is replaced with almost instant certainty. The event was created by Chain, one of many startups trying to rewire the financial industry, with representatives from Nasdaq, Citigroup Inc., Visa Inc., Fidelity, Fiserv Inc., Pfizer Inc. and others in the room.”
“We created a digital dollar”
It's about time we start paying attention to the clear trend toward a possible E-Dollar, it's consequences, and how to position ourselves accordingly.