A fun extract:
Q11 Lord Tugendhat: Lastly, what are the opportunities and risks of using the technology to create a central bank digital currency? We have been talking about the risks. Let me just leave that general question with you. How would you answer it?
The Lord Spens: The opportunities would be that you remit money overseas instantaneously.
Professor Michael Mainelli: I would add two things. For the first time, we would actually know the velocity and quantity of money. We have never known that. So that would be a really interesting area.
The Lord Spens: That is a good point.
Professor Michael Mainelli: We would finally see whether macroeconomics is anything other than augury and astrology. It would be quite intriguing at that level. The second thing is novel taxation. You could have a higher tax as you got closer to here [Parliament]. You could have local taxes, or land-value taxes. Of course there is a danger: you could be constantly changing taxation systems as people found that the technology made it frightfully easy to do whatever they wanted.
Tuesday, 19 July 2016
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