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It's 100% Nick Szabo with Hal Finney's help. There's a non-zero chance that there's an NSA/IC employee who worked with them. Just based on the 1996 NSA paper

It's 100% Nick Szabo with Hal Finney's help. There's a non-zero chance that there's an NSA/IC employee who worked with them. Just based on the 1996 NSA paper "How to Make a Mint" and the potential that a government cryptocurrency is the ultimate solution for the inflation problem. Regulated stablecoins and/or a CBDC is the perfect way to disintermediate the banks from the dollar. Source: speculation but I was around before bitcoin

deleted 5y ago
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lottin 5y ago
The "inflation problem" is not perceived as a problem by hardly anyone (certainly not by a government agency) since central banks around the world have shown that they are very capable of keeping inflation near the intended target. And the idea that the NSA thinks a cryptocurrency would be a solution to such a non-existent problem is even more bizarre.
- mejutoco 5y ago
  If it leads to stagflation it might be a real problem, that definitely worries central banks. Several central banks around the world are working on digital currencies (https://en.wikipedia.org/wiki/Central_bank_digital_currency https://en.wikipedia.org/wiki/Central_bank_digital_currency). These would unlock more complex measures than giving people money and hope for the best to activate the economy (people might just save the money). Things like giving money to spend only in certain things, or for a limited time might come into effect then.
  - aspenmayer 5y ago
    China’s CBDC already incorporates limited time balances, which were demonstrated with airdrops that had an expiration date. Flexa has partnered with various crypto projects and traditional business to offer crypto denominated coupons that have an expiration date as well. I’ll admit I’m bullish on crypto generally, but not like this. It may work for CBDCs, in that it will drive spending over saving to some degree, but I suspect they will be treated like radioactive hot potatoes. What’s to stop someone from selling their CBCD and simply buying a competing stablecoin that isn’t going to expire? Inflation can be both unpredictable and devastating; yet, predictable sudden devastating devaluation via expiration dates is held up as an improvement over the non-CBDC stablecoin status quo?
    - lottin 5y ago
      > China’s CBDC already incorporates limited time balances Citation?
      - aspenmayer 5y ago
        https://www.bloomberg.com/news/articles/2021-05-09/china-s-much-hyped-digital-yuan-fails-to-impress-early-users https://www.bloomberg.com/news/articles/2021-05-09/china-s-m...

deleted 5y ago

[deleted]

lottin 5y ago

The "inflation problem" is not perceived as a problem by hardly anyone (certainly not by a government agency) since central banks around the world have shown that they are very capable of keeping inflation near the intended target. And the idea that the NSA thinks a cryptocurrency would be a solution to such a non-existent problem is even more bizarre.

mejutoco 5y ago
If it leads to stagflation it might be a real problem, that definitely worries central banks. Several central banks around the world are working on digital currencies (https://en.wikipedia.org/wiki/Central_bank_digital_currency https://en.wikipedia.org/wiki/Central_bank_digital_currency). These would unlock more complex measures than giving people money and hope for the best to activate the economy (people might just save the money). Things like giving money to spend only in certain things, or for a limited time might come into effect then.
- aspenmayer 5y ago
  China’s CBDC already incorporates limited time balances, which were demonstrated with airdrops that had an expiration date. Flexa has partnered with various crypto projects and traditional business to offer crypto denominated coupons that have an expiration date as well. I’ll admit I’m bullish on crypto generally, but not like this. It may work for CBDCs, in that it will drive spending over saving to some degree, but I suspect they will be treated like radioactive hot potatoes. What’s to stop someone from selling their CBCD and simply buying a competing stablecoin that isn’t going to expire? Inflation can be both unpredictable and devastating; yet, predictable sudden devastating devaluation via expiration dates is held up as an improvement over the non-CBDC stablecoin status quo?
  - lottin 5y ago
    > China’s CBDC already incorporates limited time balances Citation?
    - aspenmayer 5y ago
      https://www.bloomberg.com/news/articles/2021-05-09/china-s-much-hyped-digital-yuan-fails-to-impress-early-users https://www.bloomberg.com/news/articles/2021-05-09/china-s-m...