The siren call of T+0, or real-time settlement

The NYSE’s clearinghouse in 1898, six years after its founding Traditional financial systems often get mocked for being slow. In North America, for instance, securities markets have recently switched from…

Money in an economy without banks

by Alex Schaefer ¬† Most of the world’s money is currently in the form of deposits created by banks. After the 2008 credit crisis, which instilled a strong suspicion of…

An homage to the cheque (or check)

The check used to buy Alaska (source) I recently read an FP article about the odd persistence of the cheque as a way to make payments. According to the author,…

The dematerialization of cash

“One dollar bill,” watercolour by Adam Lister (source) R3, a company specializing in distributed ledger technology, has just posted a paper I wrote for them entitled Fedcoin: A Central Bank-issued…

Money as layers

Source Whenever I try to come up with a metaphor for the monetary and banking system I think about the 2010 film Inception, one of my favorite films. After falling…

Narayana Kocherlakota,¬†formerly the head of the Federal Reserve Bank of Minneapolis and now a prolific economics blogger, penned a recent article on the abolition of cash. Kocherlakota makes the point…

Bitcoin has had another white knuckle year, rising from a low of $350 in January to a high of $780 in June. As I’ve said many times before, if crytpocurrency…

The Bank of England recently announced that it will end a 300-year tradition of allowing employees to keep chequing accounts at the Bank. You can see an example of a…

Early map of Fedwire. Source: FRBNY The pace of Fedcoin sightings has been accelerating this year. If you’re new to this blog, Fedcoin is a catch-all term I like to…