RE: How Much of Crypto Was Planned? SDRs and Bretton Woods

Since you have some insight, can you tell me how many SDRs are in circulation right now? I looked it up, but couldn't find any statistics.

Personally, I think SDRs are a much better solution than any fiat currency, because they are dynamic in their composition, which provides them with a stability function in times of shifting productivity and capital flows. In my opinion, this dynamic elements makes it superior to the classic homogeneous currency zones (and even more so the Euro or its predecessor the Transfer Rubel). I would even argue that SDRs are much closer to the original pre-1914 setup of the Federal Reserve system, which was designed to sustain the liquidity of differing regional markets.

Bitcoin and other decentralized blockchain systems need to be able to solve the problem of cyclical liquidity shortages. Beyond tokenization (which is equal to fractional banking), I haven't found any convincing approaches which would defy Gresham's Law. In a free monetary market system, currencies that for instance have a best before date would quickly vanish. Others that for instance have payouts to keep their users happy are thinly disguised Ponzy schemes no better than the Turkish Lira.

So far, the best way out of this problem is to centrally impose a bad currency with good intentions, which enables the government to regulate Gresham's Law out of the market.

The only successful real life alternative to central banking that I know of is Raiffeisen's approach to cooperative banking. The big problem here for the digital sphere is that it's based on trust. This works well in and between economies, where people have long-standing social and/or business ties. But the digital sphere is by definition an anonymous place with little cultural liabilities.

As crucial question still remains unanswered, how you can create a decentralized monetary system that has all of these features:

• It has to be good money in the sense of Gresham.
• It has to keep all markets liquid at all times.
• It has to facilitate trust between actors.

Bitcoin can only provide two of the three features. But all three of them are sine non qua. As things are, a well ran centralized monetary system in the digital age is still better than all known alternatives.