RE: Motives and Regulation
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if my interpretation of him is accurate) that a huge portion of the money supply has long been disconnected from the control of the State.
It hasnt been there in a long time, at least not with the major currencies. The Eurodollar system changed money. We were always dealing with a ledger based system, yet the Eurodollar system moved it outside the realm of CBs or governments completely. In fact, for a long time, they did not realize what was taking place.
People call it shadow banking but it is really shadow money. These banks are using thousands of forms of money they created.
Ultimately, cryptocurrency is replicating this system. The Eurodollar system is really reserveless, private bank money. We are constructing the same thing except without the banks.
It all comes down to who controls the ledger. With the Eurodollar, it is the international banking system. With crypto, it is block producers all over the world.
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Something is already happening and yet they didn't know what was going on? That's interesting.
Yeah, I heard about "shadow banking" and "offshore banking" before, but I had no idea that it is connected to the Eurodollar market. Every time I read about it in mainstream news, it is always pictured negatively such as big men trying to escape the taxmen.
I am thinking about whether these "thousands of forms of money" are the same as "financial innovations" described by Higonnet in his paper.
That is why I am wondering. If it is considered acceptable as practiced in the Eurodollar market, why are these policymakers seem to focus their energy this time on regulating cryptocurrency?
Coming from the perspective of the Austrian School of Economics, I was actually hopeless before about the monetary system of the world. I am not sure if it is accurate to say but I think most economists from this school are also clueless about how the Eurodollar market works. Entering crypto, I now see hope. I would rather trust a system controlled by individuals and block producers rather than by the international banking system.