Terminating Currency Options for Distressed Economies
19 Pages Posted: 8 Feb 2016
Date Written: February 2, 2016
The research question is to investigate how supplementary digital terminating currencies can provide a superior fallback position to Bitcoin in a financial crisis and/or provide a basis for rehabilitating distressed economies. Greece lost the opportunity to regain monetary sovereignty because its finance Minister believed a year would be required to introduce new notes and coins. Digital self-liquidating Euros could be distributed immediately to voters by using swipe cards used by some governments for transit facilities. Bitcoins do not provide a viable medium of exchange because of the cost of their purchase, creation and/or exchange. Self-liquidating paper based “Stamp Scrip” privately issued in Europe and the US in the Great Depression minimises the complications and cost of money creation and/or exchange. Self-liquidating money was called “Speed” money because it circulated faster. Its private issue again in Germany since 2003 demonstrate its acceptance and attraction for Governments to introduce digital Speed money.
Keywords: Digital currency, Stamp Scrip, Tagged-currency, Tethered currency, Terminating money
JEL Classification: B29, E42, E59, E61
Suggested Citation: Suggested Citation