The Central Bankers’ Bold New Idea: Print Bitcoins
by Jon Sindreu, The Wall Street Journal
When it comes to bitcoin and digital currencies, central banks might be considering the adage: “If you can’t beat them, join them.”
In a research paper published on Monday, economists at the Bank of England advocated that central banks issue their own kind of digital currency. Using the U.S. as a case study, they argued it could give a permanent boost to the economy of around 3%, as well as providing policy makers with more effective tools to tame financial booms and busts. …
But the main appeal of bitcoin isn’t that it’s electronic. In fact, most money already is: Only about 5% of money in the economy is physical cash; the rest is bank deposits.