Friday, December 4, 2020

Yale Law Center: Fedcoin Will Make Bitcoin Obsolete

As talk continues to intensify about the Federal Reserve introducing its own e-currency, what would happen to Bitcoin under such circumstances?

Three academics at Yale University, Sahil Gupta, Patrick Lauppe and Shreyas Ravishankar put out a paper in 2017, Fedcoin: A Blockchain-Backed Central Bank Cryptocurrency, where they attempt to answer that question.

This is their conclusion:

Our digital money, locked up in private ledgers and exchanged through dozens of heterogenous databases en route from creditor to debtor, lacks the speed, stability, scalability, and security of a good cryptocurrency. A successful Fedcoin would make bank notes, credit card companies, and Bitcoin obsolete, while transforming the nation’s medium for money.

As I have previously written, a Federal Reserve created digital coin could be one of the most dangerous steps ever taken by a government agency. It would put in the hands of the government the potential to create a digital currency with the ability to track all transactions in an economy---and prohibit transactions for any reason.

This is even more reason to end the Fed.



  1. Robert, what do you think would happen to gold and silver coins under Fedcoin?

    1. They'd be a good candidate for black-market currency. Maybe this is how we get back to commodity money after all. The only way out is through.

    2. I think through is the only way forward as well and make no mistake it will be painful for the masses