Abstract
Description of a post-modern implied monetary system -or Monetary System 2.0 -enabled in one embodiment by a Central Bank's permissioned distributed ledger technology ("DLTs") architecture trading a novel digital hybrid credit note instrument or token. This novel monetary instrument could over time help rebalance some of our modern fiat currency system's resource allocation imbalances leading to material economic, environmental, and social benefits for the agents of the system. Our modern financial system is facing profound challenges and potential deep structural transformations. Challenges due to the consequences of the 2008 financial crisis and the Quantitative Easing programs ("QE") launched shortly after by the Fed and other Central Banks to avoid a 1930s like Great Depression, and structural transformations with the rapid digitalization of our economies and payment systems. QE is a monetary liquidity event unprecedented in scale and duration and is itself leading to new challenges for our economic system: misallocation of capital and resources, financial asset inflation and the widening gap between capital owners and wage-earning citizens.
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