Where the NY Fed ‘Bitcoin Is Not New’ Blog Goes Wrong

Where the NY Fed ‘Bitcoin Is Not New’ Blog Goes Wrong

(Sonny Ross)

CoinDesk columnist Nic Carter is a partner at Castle Island Ventures, a venture fund based in Cambridge, Mass., that focuses on public blockchains. He is also the co-founder of Coin Metrics, a blockchain analytics startup.

Recently, two staffers at the New York branch of the Federal Reserve published a short tract provocatively entitled “.” As someone who has used for payments, savings and a means of wealth transfer for the last half decade, this was news to me. I was curious to find out what I had been using this whole time, if not money.

In the article, the authors, Michael Lee and Antoine Martin, first distinguish money versus the mechanism of exchange. No complaints there: Venmo isn’t money, it’s a means of moving money around. Same for SWIFT and Fedwire and PayPal and so on. The dollars circulating within those systems constitute the money. Then the paper gets into more tendentious territory, somewhat brusquely dividing money into “fiat money, asset-backed money, and claim-backed money.”

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