So today, a well-known financial blogger alerted his readers to a story about the mayor of Barcelona, Spain, Ada Colau, who is seeking to make good on an election promise — to introduce a local currency. El Pais carried the story months ago in, An alternative currency for Barcelona? and Cryptocoinnews.com updated the story in MAYOR OF BARCELONA ADVOCATES FOR A LOCAL DIGITAL CURRENCY.
Likely, it will not be currency for the exact same reason that Bitcoin isn't currency — it will lack bearer negotiability [See: BITCOIN IS SOFTWARE PROTECTED BY COPYRIGHT. BITCOIN IS NOT LEGAL TENDER CASH ]. Digital schemes always require proof of ownership. Thus such schemes can't be currency.
Notice how the mayor Colau failed to advocate for something far simpler — use actual money such as silver coins or gold coins but not both.
Colau perpetuates another delusion. How does the local merchant who earns all of his livelihood in Barcelona Bits travel for vacation to Hamburg or Paris? Who will take his Barcelona Bits for Euros? How will any local merchant pay for imported wares?
"Local currency" schemes are more like coupon books sold by Entertainment. But rather than being specific coupons printed with the exact trade terms of a particular merchant complete with the merchant's logo, a local currency is merely an undifferentiated coupon that all merchants have agreed to accept at the same terms.
All people are doing is bartering coupons for merchandise and merchandise for coupons. The seller of those coupons agrees to redeem coupons from the merchants for bank credits from an actual banking system.
Who can redeem those Barcelona Bits for EUR or USD without incurring costs for computers, electricity, programmers and other staff? So what is the fee all must pay upon each of their transactions for this Barcelona Bits service?
Why would prudent shopkeepers with actual business acumen want to burden themselves with extra expenses?
Coupons are promotions whereby businessmen have decided to accept lower margins. Most who do are trying to gain market share for the future.
Connect
Get TDJ updates right in your inbox
TDJers Are Reading ...
-
Back during the days that fool Alan Greenspan was chairman of the Federal Reserve, the Mr. Magoo who could not see the biggest credit bubbl...
-
The data comes from the Coronavirus COVID-19 Global Cases by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins Uni...
-
The election of Donald Trump will transform the USA. Believe it. The trends that began between 1988 and 1995 peaked in 2016 and are now c...
-
The pseudo-science of climate change as peddled by academicians is what I call Bolshevik science. It is pseudo-science of misanthropes who h...
-
Recently, there has been a dust-up on Twitter between Steve Sailer , a well-known champion of IQ, specifically as a tool to describe race, a...
-
If you have read my recent works, you know about the Big Lie. If not, take a look at these: THE BIGGEST LIE ALMOST ALL AMERICANS BELIEVE: AM...
-
The formula for "real" GDP taught in schools: nominal GDP ÷ base year GDP × 100 This yields "real" GDP in what was cal...
ALL-TIMERS
-
Back during the days that fool Alan Greenspan was chairman of the Federal Reserve, the Mr. Magoo who could not see the biggest credit bubbl...
-
The data comes from the Coronavirus COVID-19 Global Cases by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins Uni...
-
The election of Donald Trump will transform the USA. Believe it. The trends that began between 1988 and 1995 peaked in 2016 and are now c...
-
The first presidential election featuring at least two parties happened in 1792. George Washington, the winner of that election, returned ...
-
For years, the foolish have parroted a thoroughly wrong story that Iggy Pop was a punk rocker and thus "the godfather" of punk ro...
-
Recently, there has been a dust-up on Twitter between Steve Sailer , a well-known champion of IQ, specifically as a tool to describe race, a...
-
President Donald J. Trump, the 45th President of the United States kicked off the 2024 presidential election race by announcing his candidac...
-
In his so-called manifesto, The Great Replacement: Towards a New Society, Tarrant, under the heading Why did you carry out the attack?, list...
-
BTC has a long way to go down. Likely, it is over-priced relative to the crappy USD by $14,000. What should have been learned about Bitco...