by Tyler Durden via, Activist Post:
As the world obsesses over Trump’s taxes or whether or not he is using oxygen during his covid hospitalization, the biggest overhaul in monetary and currency history is quietly taking place just behind the scenes. Just two weeks ago, Cleveland Fed president Loretta Mester hinted at just how close the US is to a comprehensive overhaul of the entire fiat system when she said that “legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”
This, together with an August Bloomberg interview with Simon Potter, who led the Federal Reserve Bank of New York’s markets group for years, and Julia Coronado, who spent eight years as an economist for the Fed’s Board of Governors (the two are among the innovators brainstorming solutions to what has emerged as the most crucial and difficult problem facing the Fed: get money swiftly to people who need it most in a crisis), in which the duo suggested depositing digital dollars directly in households’ apps, prompted us to write two weeks ago that “In An Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit “Digital Dollars” Directly To Each American.”
Yet when it comes to clogged funding pipelines and a slow monetary transmission mechanism, while the Fed may be slow in responding to the collapsing monetary velocity the ECB is absolutely glacial, largely due to the fact that while the Euro area shares a monetary regime it still has independent fiscal regimes.
Which may explain why while the digital dollar is still in its development stage (the Fed is currently conducting joint research with MIT on whether and when to launch it), Europe is far closer to hitting the “green” button on a digital currency: on September 22 the ECB quietly filed to trademark the term “digital euro” (which appropriately enough abbreviates to DE to instill a sense of German patriotism when officials push Europe’s most conservative society into the great monetary unknown) as disclosed by the website of the European Union Intellectual Property Office, as European officials are preparing to release an assessment of the benefits and drawbacks of creating a digital version of the currency.
The trademark lists various applications for both goods and services, among which:
- Computer hardware, firmware and software; e-commerce software enabling users to carry out commercial transactions by electronic means via a global computer network; application software for block chains; software for purchase, sale, management, payment, downloading, recording and administration of tokens; payment cards; spare parts, accessories, software and firmware for all the above-mentioned goods.
- Financial affairs; monetary affairs; banking services; credit card and debit card services; verification, analysis and evaluation of payment transaction data (financial services); financial information concerning foreign exchange transactions; financial information concerning currencies; issuance and redemption of tokens; foreign exchange trading operations; foreign exchange trading; money transfer services; processing of electronic payments; management of real estate assets of electronic tokens (e-wallet); financial services provided by electronic means; cryptocurrency services, namely, a digital currency or digital token, incorporating cryptographic protocols, used to operate and build applications and block chains on a decentralized computer platform and as a method of payment for goods and services.
- Programming services in the field of information technology in connection with software for e-commerce; design, development and implementation of software in the field of block-chains; provision of advice and services provided by consultants relating to software; provision of computer programs for e-commerce.
- Provision of user authentication services in the field of e-commerce transactions; provision of user authentication services in the field of e-commerce transactions on communication lines.
The application was filed by the ECB’s legal representatives Bock Legal:
This is happening as the growth rate of Europe’s currency in circulation just jumped into the double digits, the fastest pace this decade, strongly hinting that the ECB will be incentivized to track and control all circulating currency… ideally by converting it into digital.
In a report setting out the pros and cons of launching a digital euro, the ECB said that it “could support the Eurosystems objectives by providing citizens with a safe form of money in the fast-changing digital world.” By which, of course, it means preserving the ability to deposit – and withdraw – digital funds from European accounts at will, while in the process making banks redundant.