Yordan Radev, The Quest for New Safe Haven Assets and New Global Reserve Currency
Posted by Yordan Radev,
- In the period 2009-2019, Bitcoin, Libra Association and the International Monetary Fund developed almost identical financial solutions, namely bitcoin, libra (libracoin) and SDRs (a.k.a. currency basket), characterized with different levels of decentralization and Articles of Agreement provisioned (IMF) or Blockchain protocol-based automation (Bitcoin PoW e-cash system and LibraBFT PoS permissioned blockchain system), designed for distribution of their underlying financial assets (a.k.a. 'coins' and 'tokens') and market circulation of token-denominated monetary aggregates (i.e. debt securities, having the financial characteristics of zero-coupon perpetuity bonds), and aimed at artificial development and promotion of new safe-haven assets and new reserve currency to substitute the U.S. dollar in a globalized multi-currency world.
- However, Libra and IMF have designed transparent reserve-backed proposals, with certain commitments to price stability and sustainable governance.
- Bitcoin peer-to-peer e-cash system has never made commitments to price stability and governance.
- NB! Bitcoin and Libra Association have developed investments and ecommerce algorithmic Distributed Communications e-cash systems, where the central and commercial banking two-tier monetary transmission and financial intermediation are externalized.
- Disclosure: The presentation attached represents my purposefully simplified and independent interpretation of IMF's paper "Enhancing International Monetary Stability—A Role for the SDR?", 2011