Imagine if the United States begins issuing electronic US Dollars that can be emailed from one person to another or sent via an attachment.
Imagine if this currency is backed by the Fed and the Central Bank.
Imagine if you could go to any US Bank and convert the electronic currency to the real US Dollars.
Imagine if anyone could buy something for 1 cent simply by sending, texting or emailing the funds, without paying a transaction cost.
Imagine how this will transform the global commerce.
The 20th Century was an American Century because the United States, namely the US Dollar, became the bedrock of the global commerce. It enabled the US to ship dollars by the trillions (costing pennies to print) oversees in exchange for wealth from other countries, which was used to build our economic might. And, in exchange for those dollars the US shipped, it received tremendous amount of wealth for ZERO INTEREST. There is no cheaper way for a country to finance its growth than to print currency and ship it abroad, because those who hold the currency are not expecting a return for their "investment".
Now, the 21st century is clearly becoming the century of electronic commerce, however we are still using the currency of the previous generation. If the Federal Reserve issued an electronic US Dollar that could be traded like BitCoin, but backed by the Fed and exchanged for real US dollars, it would become the bedrock of the electronic commerce overnight. People all over the world would be able to trade it, exchange it electronically, and settle with their bank in exchange for the printed equivalent. I can imagine the sheer volume of wealth that will flow into the US in exchange for the US-backed electronic currency.
It will not only result in more efficiency in the online commerce at home and oversees, but also create new industries overnight. This one step has the potential of taking the US out of the current recession overnight, and substantially offsetting the national debt.
Of course, many issues would have to be ironed out, particularly around security. But, considering how secure BitCoin is without central governance, I am convinced that none of the technical challenges will be insurmountable, because all transactions will have to be verified.
I think sooner or alter one country's currency will become the defacto electronic currency for global commerce. The question is will it be the US, Canada, or some other country?
Sandro G
Seattle, WA
