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“The scriptural Euro issue may have more people asking questions about the creation of money out of thin air – if banks can do it, why can’t we?”
With permission from
Source: Zero Hedge
Citizens conjure Euros out of thin air, just like banks.
Because the top cryptocurrencies, Bitcoin and Ethereum are open source, any one can create their own cryptocurrencies.
While the proliferation of cryptocurrencies has central banks concerened, another more insidious and perhaps greater threat to central banks’ monopoly on money creation is the issuance of scriptural euros by citizens.
Scriptural Euros are Euros issued by citizens under a “theory of the autonomous creation of scriptural currency” based on the idea of collective property of money that affirms the right of every citizen to autonomously create “scriptural” money (Euros) via their own accounting records. The theory of autonomous creation of scriptural currency holds that just as banks can conjure debt based money out of thin air, so can citizens.
Money thus created by citizens can then be used to extinguish their own debts.
Apparently, citizen-created euros have been accepted as payment. @marcosabait (Marco Saba) shared his experience on twitter whereby his scriptural Euros were accepted by Facebook as payment for advertising. This correspondence between @marcosabait and Facebook shows how @marcosabait created 25 Euros as payment to Facebook and Facebook accepted the citizen issued Euros as payment.
In the correspondence, @marcosabait informs Facebook Italy (in English) that banks AND citizens can create new Euro in electronic form and that he had just done so in the amount of 25 Euros and was submitting it as payment. He also referred Facebook to his Facebook page for more information on citizen created scriptural Euros.
Facebook responded in Italian by accepting @marcosabait payment of his self-created scriptural Euro, while noting his payment was being accepted this time, but such payments may not be honored in the future.
According to @marcosabait, Italian citizens have created more than 1 billion scriptural Euros since October 2016.
Citizens conjuring money out of thin air and having that money accepted as payment all seems like internet urban legend. Perhaps, in the example above, the Facebook employee didn’t want to argue over 25 Euro and was just humoring @marcosabait. Or maybe, the correspondence itself was spurious. Certainly, the claim that more than 1 billion scriptural Euro have been created seems far fetched and that any large sum of scriptural Euros being accepted as payment seemed even further afield.
Despite what might appear to be a ludicrous ploy to convince citizens they have the right to create their own Euros, the Bank of Italy is taking scriptual Euros seriously. Last month, the Bank of Italy issued a warning about the creation of scriptual Euros. Attached to the warning was a PDF that explained the Bank of Italy’s position on scriptual Euros.
The position paper is entitled “Scriptural Money Created by Citizens”. The paper notes that its purpose is to avoid “dangerous misunderstandings” involving scriptural Euros. The paper claims that only the Bank of Italy can issue the form of legal currency based on international and national legislation and that it is necessary for the Bank of Italy to have this power in order to guarantee overall confidence in currency and the stability of its value over time. The paper further notes that payment services through scriptwriting is an activity allowed by law only to authorized persons, such as banks, electronic money institutions and other payment institutions.
The paper concludes that “initiatives for the creation of a autonomous scriptural currency have no legal basis” and calls on citizens not to use such forms of currency.
The scriptural Euro issue may have more people asking questions about the creation of money out of thin air – if banks can do it, why can’t we?
From Cryptocurrencies to FairCredit
The economic system promoted by Faircoin, explained!!
Despite a seven-fold difference in price, the market capitalization of a virtual currency called ‘ethereum’ is rapidly approaching that of bitcoin.
According to a chart presented by CoinMarketCap, bitcoin currently accounts for nearly 39 percent of the combined market capitalization for all cryptocurrencies, though that figure is down sharply from late February’s 87 percent.
At the same time, ethereum, which accounted for over 31 percent of the combined market cap of virtual currencies, saw just a five percent drop over the past four months.
Bitcoin has enjoyed the largest share of the cryptocurrency market since it was first introduced in 2009, with no serious rivals in sight – up till now.
Ethereum, which has been around for less than two years, is becoming bitcoin’s biggest rival.
The currency was developed by Russian-born programmer Vitalik Buterin, who launched an open-source computing platform called ethereum based on blockchain technology.
In the event ethereum’s market value overtakes bitcoin’s, experts expect a shift in market forces called “The Flippening” to occur, after which ethereum may become the biggest, most valuable, and most important cryptocurrency.
According to data from CoinDesk, the current market cap of bitcoin is slightly above $40 billion, with the price swinging around $2,400, while ethereum’s market cap is over $29 billion, with a price of around $315 per coin.
Some experts say ethereum is definitely set to overtake its rival. The young cryptocurrency “has almost five times as many nodes in its network as bitcoin, meaning more people are using their computers to support it,” according to the Motherboard.vice.com news outlet.
At the same time, banking industry giants have rendered conflicting opinions on digital currencies so far.
Earlier this week, a Goldman Sachs technical expert issued a bearish forecast on bitcoin and Morgan Stanley analysts expect the massive rally for cryptocurrencies to stall until they receive some governmental acceptance.
Because cannabis remains a Schedule I drug under federal law, financial institutions have shied away from marijuana businesses … enter Bitcoin.
By Carey Wedler
As the age of cannabis prohibition slowly comes to an end — despite the best efforts of drug warriors like Attorney General Jeff Sessions — there is an increasing degree of accountability and transparency in the emerging industry. The more states legalize and decriminalize the plant, the more it makes its way out of the shadowy black market and into a more professional, retail setting as retailers and growers face more scrutiny and higher standards.
But even as states legalize cannabis and consumers are increasingly offered safer settings and more product variety, the industry is still struggling as a result of the federal government’s continued tirade against the substance. This is clear in its ongoing police attacks on cannabis operations — even in states where it’s legal. But anti-drug laws are also causing headaches for the industry another way: they’re making it nearly impossible for members of the industry to safely conduct financial transactions.
Because cannabis remains a Schedule I drug under federal law, financial institutions have long shied away from allowing marijuana businesses to use their services. As a result, those working in the cannabis industry are largely forced to conduct their transactions in cash, which is not only inconvenient for both the merchant and the consumer, but also a safety risk; they must hoard large sums of cash rather than being able to deposit their profits in a safe account. The Los Angeles Times has reported that 70 percent of cannabis businesses have no bank accounts.
As a result, Bloomberg reports, participants in the cannabis market are coming up with solutions to this problem. The outlet reports that “[l]egal cannabis was a $6 billion industry last year and is expected to grow to $50 billion by 2026, according to Cowen & Co,” and as a result, at least two cryptocurrency startups are stepping in to help process those profits.
Enter bitcoin, the cryptocurrency that consists of digital coins ‘mined’ by computers solving increasingly complex math problems. At least two financial-technology startups, POSaBIT and SinglePoint Inc., use the cryptocurrency as an intermediate step that lets pot connoisseurs use their bank-issued credit cards to buy weed.
POSaBIT operates by installing kiosks in cannabis shops that allow customers to purchase digital currency with their credit cards (with a two dollar transaction fee added on). That purchased currency can then be applied in the store.
John Baugher, co-founder of POSaBIT, argues the technology is vital.
“There’s no industry — whether it’s the production and sale of cannabis or the production and sale of a cup of coffee — that can operate safely, transparently or effectively without access to banks or other financial institutions and traditional services,” he says.
“That’s where we thought we could leverage the use of digital currency.”
Trove Cannabis, a high-volume shop in Washington that conducts 3,000 transactions per week, started using POSaBIT after spending six months on a waiting list. According to Yin-Ho Lai, the company’s CEO, 13 percent of their customers have since chosen to pay with credit or debit cards and tend to spend more when they use that form of payment.
Consumers also have the option to keep the digital currency they buy and spend it elsewhere.
POSaBIT is not the only company coming up with solutions to the government’s impositions on the cannabis trade. “SinglePoint, a mobile-tech firm that specializes in payments via text message, signed an agreement last week with First Bitcoin Capital Corp. to develop a solution for cannabis and other high-risk industries without access to traditional banking,” Bloomberg notes.
SinglePoint put terminals in Washington-based shops two years ago, but banks shut them down, citing too much risk. Now that cryptocurrency is becoming increasingly mainstream, however, there is hope. “It’s not foreign to them now, like some sort of weird scam that they don’t know about,” says Greg Lambrecht, founder and CEO. “More and more establishments are accepting it, but it’s kind of like the wild, wild west.”
Nevertheless, one prevailing view from industry insiders is that by the time these cryptocurrency options are widespread, traditional banks will be more willing to accept cash from the cannabis industry as the plant continues to move into the mainstream. In the meantime, however, the technology will continue to improve the quality of the ever-profitable and burgeoning business.
By Matt Agorist
In Russia, there are free speech zones, gays are persecuted, and speaking out against the State is often met with police brutality — just ask the activist band Pussy Riot. Vladimir Putin is not a hero. That being said, however, on a larger scale, Putin is not attempting to build an empire, he is not destabilizing the Middle East and installing dictators, he’s not funding ISIS, and he tends to resist moves by the globalists that are harmful to the well-being of the Russian people and their money.
As the Free Thought Project reported earlier this year, Putin has begun preparing to release Russia from the crushing grip of the international banking system completely, by moving to a nationalist model based and conducting transactions with allies in gold.
After the massive push toward gold, however, Putin is looking to the future — and the future is in cryptocurrency.
Last week, seeking to further protect Russia from the claws of the international money changing cartel, Putin met with Ethereum founder Vitalik Buterin.
As the US seeks to dominate the currency market by limiting the use of cryptocurrency, Russia is proving they are not as beholden to the bankers by facilitating competition with their native currency, the ruble.
As the US seeks to hack, dismantle, and fear monger over the incredible revolution that is the blockchain, Putin wants to implement it.
“The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models,” Putin said.
Putin appears to have chosen Ethereum because of its incredible performance so far this year. In February, Ehtereum was still trading in the low teens but it has seen a near 3000% growth since then. It is also showing the potential to pass the mother of all cryptocurrencies, Bitcoin.
In short, it looks like Russia has plans to deal a massive blow to the banking class and they are looking for the best ways to go about it — gold and cryptocurrency. And, they are wasting no time.
As Bloomberg reports, Russia’s central bank has already deployed an Ethereum-based blockchain as a pilot project to process online payments and verify customer data with lenders including Sberbank PJSC, Deputy Governor Olga Skorobogatova said at the St. Petersburg event. She didn’t rule out using Ethereum technologies for the development of a national virtual currency for Russia down the road.
While central banks across the globe attempt to circumvent the decentralization of cryptocurrencies, they have remained vigilant because of the peer-to-peer nature of the transactions and the security of the blockchain.
It is also important to note that Russia’s move to adopt an Ethereum-based currency is not a flawless measure. It will still be subject to the regulations of the Russian government. However, it is a start and its effect could have revolutionary implications.
“Blockchain may have the same effect on businesses that the emergence on the internet once had — it would change business models, and eliminate intermediaries such as escrow agents and clerks,” said Vlad Martynov, an adviser for The Ethereum Foundation, a non-profit organization that backs the cryptocurrency. “If Russia implements it first, it will gain similar advantages to those the Western countries did at the start of the internet age.”
Rest assured, however, that there are forces in the banking industry who are moving to control cryptocurrencies and stop this progress. Indeed, they are making their own ‘coins’ which will undoubtedly be accepted by governments, easily manipulated, and under total control.
The Bank of England is one such member of the cartel moving to usurp the power given back to the people through cryptocurrencies. Bank of England has an experimental cryptocurrency underway called RSCoin.
RSCoin, however, is the opposite of Ethereum and Bitcoin. Its purpose would be a tool of State control, so the central bank could keep a tight grip on the money supply — ostensibly to ‘protect’ citizens in the times of economic crisis — but, in reality, to enrich those at the top through its manipulation.
The US would do well to get with the times, taking a page out of Russia’s book, and move to adopt and accept the revolution that is cryptocurrency. Otherwise, when the US dollar does finally collapse, it will be the American people holding the bill — a scenario that no one wants to see.
Matt Agorist is an honorably discharged veteran of the USMC and former intelligence operator directly tasked by the NSA. This prior experience gives him unique insight into the world of government corruption and the American police state. Agorist has been an independent journalist for over a decade and has been featured on mainstream networks around the world. Agorist is also the Editor at Large at the Free Thought Project. Follow @MattAgorist on Twitter, Steemit, and now on Facebook. This article first appeared here at The Free Thought Project.