Bypassing the $

[GrahamPlatt]

Good or bad?

https://bnn.network/finance-nav/busines ... ncy-trade/

[stevensfo]

Good or bad?

https://bnn.network/finance-nav/busines ... ncy-trade/

If you read every sentence very carefully, it sounds like a Mr Bean sketch.

Brazil and China. The most reliable, honest and stable countries in the world!

I will be selling all my USA shares and putting them into Brazil and China.

You know it makes sense!


Steve

[Urbandreamer]

This has actually been a subject of much conversation in a certain community.

The reason? Well what Steve implied. How? Who regulates it? Who controls the "money supply" (printing)?

The EXACT reasons why most of these countries want to Bypass the $.

So, I hear you ask what community? Well the community of bitcoiner's who have an eye to Austrian economics.

By the way, the macro investment researcher Lyn Alden has a new book out called "Broken Money".

https://www.amazon.co.uk/Broken-Money-F ... B0CG8985FR

I've not read it yet. I confess that it's likely that I'll wait until Guy Swan has read it for me and listen to it instead.

Ps, sorry for mentioning bitcoin, however many of those interested in Austrian economics are also interested in bitcoin. After all Hayek published "The denationalization of money" back in 1975.
https://en.wikipedia.org/wiki/The_Denat ... n_of_Money

[Tedx]

Theres no doubt the Americans are controlling the interest rate narrative at the moment. I guess we're almost running some kind of dollar peg at the moment.

[Urbandreamer]

Ooops, sorry.

I should have read the contents of the link!

I assumed that we were talking the likes of this recent report.
https://www.reuters.com/markets/currenc ... 023-08-23/

Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations.

[odysseus2000]

This arrangement seems all about the politicians of Brazil & China wanting to stabilize transactions between their nations avoiding fluctuations in world currency markets.

It makes sense if you consider the basic concept of money as an exchange mechanism for goods & services with out having a third party taking its cut via fluctuations in exchange rates with that third parties currency.

The step beyond that is to create decentralised currencies where there is no national control via central banks setting interest rates & causing exchange rates to fluctuate.

It seems unlikely that any government will be happy to see its central banks bypassed and the industries of exchange will also not be happy as they make their living from the frictional costs.

However, for individuals the attractions of decentralised currencies are huge: Exchange of goods or services for a world wide currency whose value is determined by a finite total amount of the currency, making manipulation to inflate away wealth impossible & preventing seizure of wealth by politicians as happened to Canadian truckers. Such a system would operate with very small fees. So for example an individual makes a widget, advertises the widget to the world requesting payment in a decentralised currency: Seller & buyer get what they want with very small overheads. The seller keeps his/her money away from thieves & the money remains where ever the person lives & the buyer gets his goods at the lowest price.

In a fully decentralised world every human, all 8 billion, would have their own decentralised currency account with operation of the currency occurring across the nations of the world via a block chain process.

Could such a system be made corruption free & operate so that politicians lose their power over individuals or is it an impossible dream destined to be torpedoed by vested interests?

As of now some nations have made such currencies illegal whereas others have adopted it as their national currency.

Regards,

[GrahamPlatt]

In a fully decentralised world every human, all 8 billion, would have their own decentralised currency account with operation of the currency occurring across the nations of the world via a block chain process.

No need for blockchain

https://taler.net/en/

https://en.m.wikipedia.org/wiki/GNU_Taler

[Urbandreamer]

In a fully decentralised world every human, all 8 billion, would have their own decentralised currency account with operation of the currency occurring across the nations of the world via a block chain process.

No need for blockchain

https://taler.net/en/

https://en.m.wikipedia.org/wiki/GNU_Taler

Indeed there is of course no NEED for a block chain. It just provides some advantages. Following your links it looks like they use Chaumian blind signatures just like Digicash. Indeed the Wiki mentions and links a Digicash explanation.

The key advantage of the blockchain is how it prevents double spends within a decentralized system prone to the Byzantine generals problem. The problem of course does not exist with a centralized system, but you then must trust the owner.

The advantages of blockchains are noted in the Taler documentation.
https://taler.net/files/taler-book.pdf

Blockchains such as Bitcoin could also be used as the underlying financial system for GNU Taler,
provided that merchants and customers trust the exchange to be honest.
With blockchains that allow more complex smart contracts, the auditing functionality could be
implemented by the blockchain itself. In particular, the exchange can be incentivized to operate
correctly by requiring an initial safety deposit to the auditing smart contract, which is distributed
to defrauded participants if misbehavior of the exchange is detected.