Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Bitfucked


spygirl
 Share

Recommended Posts

spygirl

New forms of digital money

https://www.bankofengland.co.uk/paper/2021/new-forms-of-digital-money

Money has three main purposes – it acts as a unit of account, a means of payment and a store of value. Central bank money establishes and maintains sterling as the unit of account for virtually all transactions in the UK economy and, in doing so, anchors the monetary system. Commercial bank money is widely used as both a means of payment and a store of value. But use of commercial bank money, in turn, relies on both its relative efficiency and public confidence that it can be exchanged for central bank money in the form of cash.

Well, by participating in 2002-2008 BoE has undermined store of value, crashing the banks and inflating assets in relation to wages.

Commercial banks would have to adapt their balance sheets in response to retail deposits leaving the banking system. Under the illustrative scenario, it is assumed that banks seek to broadly maintain levels of lending. Further, they are assumed to maintain their liquidity positions. In particular, as deposits migrate to new forms of digital money, banks are assumed to restore their liquidity positions, and hence their ability to continue lending, by issuing long-term wholesale debt. Since this is more costly than deposit funding, overall funding costs are assumed to rise.

An increase in banks’ funding costs is assumed to increase interest rates on new bank lending. As a result, some borrowers may find it cheaper to seek credit opportunities in the non-bank financial sector. Overall, under the illustrative scenario, the impact on lending rates and credit provision is modest.

They could increase interest rates. A lot.

BoE pissing around, bailing out itself, the banks n ukgov have probably destroyed a large number of peoples faith in the regulated finance sector.

There is a large cost to 2008 n all that. 

  • Informative 2
Link to comment
Share on other sites

King Penda
Posted (edited)

It can be used to keep your fridge level has well but inflation is going to run I can’t see any difference in how cash is accumulated unless it’s backed by say gold 

Edited by stokiescum
Link to comment
Share on other sites

spunko

I'm never sure who is worse, the central banks for thinking people want to use their regulated CBDC, or the handful of idiots who publicly support the idea of a CBDC because its 'safer'.

The idea is completely anaethema to anyone who understands cryptocurrencies.

  • Agree 7
Link to comment
Share on other sites

jamtomorrow
7 hours ago, spunko said:

I'm never sure who is worse, the central banks for thinking people want to use their regulated CBDC, or the handful of idiots who publicly support the idea of a CBDC because its 'safer'.

The idea is completely anaethema to anyone who understands cryptocurrencies.

Some of the crypto crowd are referring to CBDCs as "state surveillance coins", or just simply "surveillance coins". The hat does seem to fit.

  • Agree 4
  • Cheers 1
Link to comment
Share on other sites

spygirl

Oh we've a crypto section!!!!!

My opinion - Bitcoin was started by a libertarian who didnt like Gordon Brown.

It then bounced around for a few years, with little interest.

It then went up like a rocket after China shut down all the gormless debt and foreign  company buying that Chinese were using to transfer money out of China.

And  thats were we are - frantic use of crypto to get money out of China. Crypto going up just draws money into it.

What scares central banks and governments is two things 0-

There is now a wide spread means of transferring money between people that does not involve the state/regulation.

Crypto to is Hawala on steroids

https://en.wikipedia.org/wiki/Hawala

Some of it is down to the technology , a lot ha been the CBs gormless ZIRP and debasing.

By 'pushing  risk profile' it looks like the CB might have pushed punters totally outside of regulated money sector.

Some have gone into the various unregulated scams- buy2let cars etc etc. Others have gone into Crypo.

The BoE does genuinely worried that they might have holed the UK  the retail banking sector

The only way back  is to start ramping up the IRs to draw money back in.

 

 

 

 

  • Agree 4
  • Informative 1
  • Cheers 1
Link to comment
Share on other sites

nirvana
Posted (edited)
1 hour ago, spygirl said:

What scares central banks and governments is two things

methinks nowt scares em cos they're 'control freak cunts' 

methinks also the FED will try an IR rise but then their Wall St masters will throw a tantrum and they'll quickly have to back down.....

it's all game innit, in the name of the petrodollar.......the petrodollar must die but they have too many nukes at the moment...

why must it die? well for starters, it destroyed the rail network in the UK in the name of getting more trucks and cars on the already overcrowded and shite road network......or maybe we can blame Brown for that one too?:Jumping:

Edited by nirvana
  • Agree 2
Link to comment
Share on other sites

spygirl
27 minutes ago, nirvana said:

methinks nowt scares em cos they're 'control freak cunts' 

methinks also the FED will try an IR rise but then their Wall St masters will throw a tantrum and they'll quickly have to back down.....

it's all game innit, in the name of the petrodollar.......the petrodollar must die but they have too many nukes at the moment...

why must it die? well for starters, it destroyed the rail network in the UK in the name of getting more trucks and cars on the already overcrowded and shite road network......or maybe we can blame Brown for that one too?:Jumping:

Nope.

WIzard of Ozish.

One day you're he big bollocks.

Next day noone wants you paper.

 

 

  • Agree 1
Link to comment
Share on other sites

nirvana
11 minutes ago, spygirl said:

Nope.

WIzard of Ozish.

One day you're he big bollocks.

Next day noone wants you paper.

 

 

need a translator in for that one xD

Link to comment
Share on other sites

spygirl

Global banking regulator urges toughest capital rules for crypto

Basel committee report comes as authorities step up plans to regulate the fast-emerging sector

https://www.ft.com/content/3fe7be31-179a-47dd-9a61-8f4ea42b9c62



Global regulators are calling for cryptocurrencies to carry the toughest bank capital rules of any asset, arguing that requirements for holding bitcoin and similar tokens should be far higher than those for conventional stocks and bonds. Banks with exposure to volatile cryptocurrencies should face stricter capital requirements to reflect the higher risks, said the Basel Committee on Banking Supervision, the world’s most powerful banking standards-setter. Its intervention came in a report released on Thursday as policymakers around the world step up plans to regulate the fast-emerging market. The Basel committee acknowledged that while banks’ exposure to the nascent crypto industry was limited, “the growth of crypto assets and related services has the potential to raise financial stability concerns and increase risks faced by banks”.

In short - banks are not going to put bitwhatnot on their balance sheet.

As Ive said in other threads ,it possible that we are witnessing the vast reduction of the banking sector was its been known since ~Bretton Woods.

Theres so much that used to be banks balance sheets that are now in the capital markets.

The more the banking sector shrinks, the less it lends.

 

 

 

  • Informative 1
Link to comment
Share on other sites

Andersen

I used to work in a building society, educational on many levels including the restictions they operate under (cash reserves / exposure ?) was a lot tighter than conventional banks.

It sounds like regulators are wanting to put bitcoin & co on a level even more restricted, no surprises there and nothing to do with dampening the newcomer markets to avoid losing control 9_9 

Edited by Andersen
  • Agree 1
Link to comment
Share on other sites

spygirl
7 minutes ago, Andersen said:

I used to work in a building society, educational on many levels including the restictions they operate under (cash reserves / exposure ?) was a lot tighter than conventional banks.

It sounds like regulators are wanting to put bitcoin & co on a level even more restricted, no surprises there and nothing to do with dampening the newcomer markets to avoid losing control 9_9 

BS had to be lower risk on their lending as a mutual they dont have the ability to raise equity

So they all de-muted, and promptly blew up within 10 years.

 

  • Agree 2
  • Cheers 1
Link to comment
Share on other sites

goldbug9999
6 hours ago, spygirl said:
Quote

Global regulators are calling for cryptocurrencies to carry the toughest bank capital rules of any asset, arguing that requirements for holding bitcoin and similar tokens should be far higher

 

Storm in a tea cup - bitcoin (and similar) is inherently a 100% reserve asset anyway so all they are saying is "if you say you hold x bitcoin you've actually got to have x bitcoin" well no shit sherlock. Pretty much every custodial crypto service does this already anyway. Even those that do crypto loans do so on a 100% reserve basis (e.g. blockfi).

Its hilarious really that the legacy finance people thing its some incredibly onerous burden to  actually hold all the money you say you have when bitcoin/crypto is designed to work that way from the ground up.

Edited by goldbug9999
  • Agree 6
  • Informative 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...