Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
strawbs
on 09/12/2021, 00:15:16 UTC


.... However, what other choice do governments have? ...

They have the same choice El Salvador made.

Oh, if only that were true. The UK (we began this with a post about UK taxation/HMRC) is at the very heart of the legacy financial system. Remember that the Federal Reserve's modus operandi was based on the Bank of England's. I would love to see the UK accept btc as legal tender. In fact, that would be astonishingly good. But that would be akin to a bitcoin phoenix rising from the flames of a rotten corpse. I suspect UK plc will be one of the very last to embrace btc. We can live in hope though.

I'm not sure what you mean by the bolded although I have spent zero time researching the Fed as its all obfuscated and hidden from prying eyes.

Maybe you can explain this?

Quote
In 1791, the government granted the First Bank of the United States a charter to operate as the U.S. central bank until 1811.[144] The First Bank of the United States came to an end under President Madison when Congress refused to renew its charter. The Second Bank of the United States was established in 1816, and lost its authority to be the central bank of the U.S. twenty years later under President Jackson when its charter expired. Both banks were based upon the Bank of England.[145] Ultimately, a third national bank, known as the Federal Reserve, was established in 1913 and still exists to this day.
https://en.wikipedia.org/wiki/Federal_Reserve


Added:

Quote
The Fed’s reputation for policy competence and independence
owes much more to the role of strong Chairmen in recent years than to any statutory design.  By contrast, the Bank of England was founded as a private bank. Concerns about
independence played no part in its early history and only came to the fore after it had acquired,
step by step, the responsibilities of a central bank.
https://www2.uwe.ac.uk/faculties/BBS/BUS/Research/Economics13/1311.pdf

I've had a little too much price-discounted Rioja to respond fully, and it's almost bed time.  You're right though - the BoE was founded as private bank. The Federal Reserve was also founded by a cartel of private banks in 1913. Both were given, by their respective nation's government, the privilege of issuing bank notes as a means of raising and then lending money to the state.

I apologise, but that's all I can really muster at this stage ¯\_(ツ)_/¯