Nation states are natural customers for new currency systems, whether open or closed

Chris Dannen

By Chris Dannen


Today's nation states are superintended by their monetary systems and fiscal policies. So it's natural that innovations in currency systems might coincide with new ideas at the policy level. Noted economics professor Robin Hanson has published a short theoretical proposal for what he calls "stability rents," shorthand for a dynamic asset valuation framework that he says would make tax regimes more flexible. That sort of "control flow" at the policy level would introduce a nightmare for (human) wonks and regulators, but in a world of programmable money, such an approach could be a realistic way at reducing transaction costs (or increasing the fairness with which they're assessed). That's good for business, especially the cross-border kind where tariffs can make or break importers and exporters. But closed nations are interested in digital currency too--for very different reasons.

Fine Grain Futarchy Zoning Via Harberger Taxes
"Instead of just one declared value per property, we allow owners to specify declared values conditional on each approved zoning change scenario, and allow conditional purchases as well. By default, conditional values equal no-change values. During a scenario’s decision period, we add ups its conditional values, and if those clearly and consistently exceed the no-change values, even after correcting suspicious inflations with tax revenue asset prices, then the zoning proposal should be adopted."

Iran could unveil its digital currency to avoid sanctions momentarily
"Iran could also use its digital currency to avoid sanctions to trade with partner countries. It is, however, not going to give the citizens access to the international financial system as the sanctions won’t allow for it to be listed on digital currency exchanges."

Would A Ban On Bitcoin Be As Pointless As The War On Drugs?
"According to Spagni, a ban on a private cryptocurrency like Monero would be similar to a ban on marijuana, which may not be worth the associated costs. 'You have like this whole War on Drugs and you’re arresting people for growing weed in their garden and, as a government, you expend billions of dollars on this,' said Spagni. 'And ultimately, the thing ends up getting legalized anyway, and all you’ve done is waste time.'"

Other News

Two Groups Account for $1 Billion in Cryptocurrency Hacks, New Report Says
"The firm believes it has connected most of the hacks to two groups, which it labeled alpha and beta. Alpha is 'a giant, tightly controlled organization at least partly driven by nonmonetary goals,' Chainalysis said in its report. Beta, the second group, is smaller and less organized, a 'heavily sanctioned organization absolutely focused on the money,' according to the report. Chainalysis said the two hacker groups employed an extensive network of digital wallets to hide their tracks and later converted the money to physical cash through online exchanges and individual transactions. The stolen funds were transferred an average of 5,000 times before they were converted into cash, Chainalysis found."

TSMC chip output for Huawei and Nvidia hit by defective chemical
"Taiwan Semiconductor Manufacturing Co. said on Monday a defective chemical had damaged production at a factory that supplies customers including chip developers Huawei Technologies, Nvidia and MediaTek. This marks the second production problem linked to suppliers in less than six months for the world's biggest contract chipmaker, which is suffering from weak demand as smartphone sales slow."

Are ICO Tokens Securities? Startup Wants a Judge to Decide
"The SEC’s enforcement division believes Kik issued an unregistered security when it sold $100 million in 'kin', a digital token that Kik says works like a currency on the its platform, according to Mr. Livingston and documents reviewed by the Journal. The SEC declined to comment. At issue is whether kin should be considered an investment security. The SEC has said most tokens issued in ICOs, public offerings of bitcoin-like digital tokens that exploded in popularity in 2017, fall into that category. Yet Kik and others in the cryptocurrency industry say the tokens represent a new kind of asset that shouldn’t be subject to the same rules as stock or bond offerings."

This Map Shows Every Power Plant in the United States
"Every year, the United States generates 4,000 million MWh of electricity from utility-scale sources. While the majority comes from fossil fuels like natural gas (32.1%) and coal (29.9%), there are also many other minor sources that feed into the grid, ranging from biomass to geothermal. Do you know where your electricity comes from?"

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