Wednesday, December 13, 2017

Australian Central Bank Considering the Issue of Electronic Banknotes

Reserve Bank of Australia governor Philip Lowe 

Very bad news.

Australia’s central bank is considering creating electronic bank notes using the technology behind bitcoin, reports The Financial Times.

Speaking at the Australian Payment Summit, Reserve Bank of Australia governor Philip Lowe said the central bank was continuing to look at the pros and cons of issuing an electronic form of Australian dollar bank notes.

“An electronic form of banknotes could coexist with the electronic payment systems operated by the banks, although the case for this new form of money is not yet established,” he said.

“If an electronic form of Australian dollar banknotes was to become a commonly used payment method, it would probably best be issued by the RBA and distributed by financial institutions, just as physical banknotes are today.”

This is the position I expect all central banks to take. If there is going to be an electronic currency, the central banks will want it to be a central bank controlled e-currency.

They will crush bitcoin and other non-central bank currencies as counterfeit currency.

Then they will have the world they want. an e-currency where they will be able to track all transactions. It will be George Orwell's 1984 on steroids.


Also see: The Anarcho-Capitalist Case for Supporting the Government Smashing of Bitcoin and Other E-Currencies 


  1. All the 'libertarians' rooting on bitcoin are cheering on the roll out of an electronic police state the likes of which have never been seen before. You point this out and the venom and hate they spew back.

    1. Yet I don't understand the venom spewed AT Bitcoin by libertarians. Shouldn't libertarians always cheer entrepreneurial, peaceful attempts by the private sector to get around the state, or to make life more difficult for the state (giving it more things to try to chase)? Sure, some will fail, but some might work. And those that work might work only partially, or in ways we can't yet imagine.

      Look at the Internet. For years naysayers have been warning that the state will increase its control over society by taking over the Internet and all electronic communications that go through it (and certainly the NSA is working hard on this), but at the same time the Internet has (a) given rise to the greatest proliferation we've ever seen of published viewpoints beyond those blessed by the state, (b) enabled efficient, decentralized communication among those who oppose any particular state, (c) facilitated online learning beyond the state's approved curricula and (d) enabled many to start businesses at lower cost, and with greater productivity, than before.

      I'm not smart enough to know what the long-term impact of crypto-currencies will be, but I am cheering on all peaceful, private sector initiatives that take on the state.