Cryptocurrency in the news #24

Closing tabs.

Got an email asking me more about the War of Spanish Succession related to gold.  My point on that panel wasn’t so much that France only used gold, but their finances were directly tied to specie (technically the French livre was in two forms: silver écu and gold Louis d’or; see also Livre tournois).  The reason I brought it up at all is because of the meme today, that Bitcoin would somehow prevent war because it neutralizes the states ability to expand its money supply, etc..  It won’t though.  Probably a better historical example are European countries from mid-19th century which adopted some form of a gold standard, yet then went on to wage a global war eventually dropping the peg altogether.  Be sure to read a new article from The Economist that discusses this, “Not floating, but flailing.”

Thanks to Izabella Kaminska (follow her on Twitter) and Zaki Manian for a couple links.

Also, be sure to check out Izabella’s thread today on Coinbase.  Based on a conversation with one lawyer I had two weeks ago it looks like a big legal challenge for Coinbase (and others in their vertical) is that they’re acting as depository institutions without having gone through the necessary “Safety & Soundness” tests which opens them up to legal action from a variety of state/federal agencies.

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