Monetary historian - economy
Monetary historian - economy
Franklin Noll, an academic and monetary historian, claimed that crypto can be both a security and a currency. With reference to the history of the US money, Noll argues that in fact it is not contradictory to be both a currency and a securities.
The "infamous" continental dollar coins
Franklin Noll, a monetary historian based in the USA, claimed that the history of the US dollar has shown over the years that it is not a currency and a security and that crypto can be both.
The Noll's claims, the president of Noll Historical Consulting, come from the fact that the debate about the status of cryptocurrencies is still controversial and unresolved. For example, Bitcoin.com News reported to the comments of the current US Sec chairman Gary Gensler on this topic.
But in a nutshell piece recently in his blog, nollt begins with the example of the continental dollar coins to support his claims. According to the historian, these now "notorious" coins were an attempt to "finance the American independence war through money prints", which ultimately failed.
The continental doll arm coins should not only serve as a currency to finance the war, but also serve as securities. Noll explains:
as a farley grubb [a professor in economics and history] pointed out that Continentals were basically zero cupon bonds that were output in small pieces. However, the plan failed when the congress changed the original repayment conditions, which made the banknotes worthless.
In addition to the continental dollar, Noll also points to the creation of interest-bearing bonds which were indeed "a group of paper-funded demisions of the US Ministry of Finance from the time of the civil war".
These grades should "serve both as a currency and as security" according to Noll. In contrast to the continental doll arm coins, which ultimately failed, the interest on banknotes were successful.
"The interest-bearing grade was created to serve both as a currency and as security. The banknotes were spent in only 10 USD and paid 5 % interest. These interest would be paid if the bond was due and paid into the state treasury.
The new paradigm
When asked how long regulatory authorities will take in order to get the idea that crypto can be both security and a currency, Noll told Bitcoin.com News that this will probably take some time. He argues that "regulatory authorities do not think so". For them, there is either a security that should be monitored by the SEC, or it is a money form that must be monitored by the US Ministry of Finance or another authority.
"I think it will take some time for the regulatory authorities to pass to a new paradigm (or really return to an old one that has not been seen for a century), in which the categories of payment methods are different.
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