> So instead of cash we would need anonymous physical (and digital) tokens whose value is not fixed, but is adjusted according to the interest rates.
So what you want is... cash. But cash from a separate currency. This is identical to what we had here in Brazil in the 90s during the Plano Real transition: the cash everyone had was in the Cruzeiro Real currency, but all the prices were denominate in URV (a "virtual" currency, which months later became a real currency called Real). The Cruzeiro Real was suffering from inflation at the time, but the URV was stable, so to buy something with a price of 1 URV you might pay CR$ 864,14 one week and CR$ 1004,68 the next week (source for these values: https://pt.wikipedia.org/wiki/Unidade_real_de_valor).
Yep, that is one way to do it to have an exchange rate between cash and account currency.
Re:Libra, 2 Weeks In
by tanseydavid on Wednesday July 10, 2019 @01:50PM
(#20404445)
It astonishes me that you refer to Negative Interest Rates as "sensible monetary policy."
Re:Libra, 2 Weeks In
by 2a96eb7d685a49c on Tuesday July 09, 2019 @08:59AM
(#20391252)
> The problem with cash is that it prohibits sensible monetary policy in certain situations
This is a feature not a bug.
I guess main problem is that to a very good approximation nobody wants these. Generally, the ones understanding monetary policy don't understand the need for privacy and the ones understanding need for privacy don't understand the need for negative rates and the rest don't care.