Rep. Alexandria Ocasio-Cortez (D-N.Y.) brought an interesting bit of monetary history into the discussion. She suggested that the Libra currency would be a digital version of scrip, a type of private money that corporations once used to pay employees. (Coal miners and loggers, for instance, were paid in scrip they could use to buy goods at the company store.)
Ocasio-Cortez suggests that Libra being “controlled by an undemocratically selected coalition of largely massive corporations” is problematic because a nation’s currency is a “public good” that should be under the purview of a government.
Georgetown Law Professor Chris Brummer’s written statement on Facebook’s cryptocurrency, Libra, will be delivered at 10am, on Wednesday, July 16, 2019. His testimony is entitled ” 99 Problems.”
Grayscale Investments Releases Q2 2019 Digital Asset Investment Report Digital currency asset manager Grayscale’s assets under management nearly tripled from $926 million to $2.7 billion in Q2 2019 on inflows of $85 million, the rest being asset price appreciation. Institutional investors comprised the 84% of Q2 inflows (75% over 12 months).
For the first time in the US, in 2018, cash was not the most frequently used means of payment, a new Fed report finds. The report shows that consumers used cash for 26% of payments last year, four percentage points lower than 2017. Cash now sits just under debit cards, which rose from 26% in 2017 to 28% last year. On average, consumers last year made 11 cash payments per month, down from 12 in 2017, while total payments increased from 41 to 43 transactions per month.
Many are trying to solve the problems associated with the remittance market today. Ripple is one of the best platforms in this sector but has a major competitor in PayPal who have launched their international money transfer app Xoom.
With 21% of adults in the region having a mobile money account, Sub-Saharan Africa is the global leader in the use of mobile money. This correlates with GSMA supply-side data on mobile money, which shows that Sub-Saharan Africa plays host to almost half of all mobile money registered accounts i.e. 396 million – of which 37% are active on a 90-day basis.
“If the ultimate outcome of a private market for money is a monopoly, does it make much difference whether the monopoly is run by a private company versus a public entity? While the former case could lead to economic exploitation based on a market advantage, the threat of potential competition would inhibit this tendency. The latter case, however, invites a more sinister abuse of government power – even tyranny – as government precludes market entry to alternative issuers.”
“Bitcoin’s average transaction volume is topping $3 billion per day, data from crypto analytics site Coinmetrics.io reveals as of July 16.”
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The Kiffmeister is a former Senior Financial Sector Expert at the International Monetary Fund.
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