Bitcoin Vs. People’s Ledger

When President Biden nominated the Lady called Saule Omarova as the head of the critical office called OCC or Office of the Comptroller of Currency, it raised too many eyebrows in the Bitcoin world. The earlier man Brain Brooks who headed OCC in 2020, seemed to have played an essential role in regulating the different sides of Bitcoin. It often remains worth mentioning the dispute around Omarova, who is now the new heard of the office. She is the new regulator may not be able to stop the storm of Bitcoin; however, she would bring in some painful hurdles in the way. The 2020s are now shaping up with contest ideas. The petrodollar system seems to be fraying, and hence one can find some active discussion moving around the next. Bitcoin lovers are now working hard to present the idea of a free and open kind of monetary network. However, there are some entrenched elites and affluent people who are also coming up with their ideas. It makes sense to understand these ideas of darkness while it remains contrasting as well. 

The Personal Background 

The Lady in the OCC office seemed to have an exciting life story. She comes from a small village based in Kazakhstan in Russia. She has been good in academics and has even bagged a few awards and got a scholarship to study at Moscow State University. She completed her thesis on a fascinating subject related to Karl Marx‘s Economic study and how the revolution came in society. As she plays devil’s advocate at this point, it has become incredible to see her moving ahead without praising the ideas of Marx. However, she never discussed her thesis in public and even denied presenting before the world when requested by the Senate Banking Committee. The refusal, therefore, raised too many questions like Is Payment through cryptocurrency is better than banking.

The People’s Ledger 

The critical controversy from her thesis is the VLR she gave called The People’s Ledger and how it democratizes money and the economy. The Lady could city out an issue with CBDC and their logical conclusion. We see that most bank deposits are going to move to the Fed Reserve Board called the FedAccounts. The transformation of the liability side is seen coming along with the Fed that would logically lead to reshaping the Fed’s investment profile. It further led to a massive expansion of the Fed and saw the government’s proper role that comes up with shaping the investment flow and economy. Interestingly, one can see her statement in the introduction that many Bitcoin lovers would love to agree.  

After so many years, issues like relentless focus on economic power, instability, rising inequality, and many more similar problems made the distribution of financial resources difficult. The Lady said that Bitcoin, along with other digital currencies, comes with the manifestation of this demand. But as we see the lumps moving ahead and digital currency based assets coming together, the shallow understanding of Bitcoin remains questionable. On the other hand, there is a constant understanding of the Bitcoin phenomenon, and one can even find attempts to gain more USDs or any other currencies. On the other side, Bitcoin is now putting all efforts to re-engineer the basic structure of money.

Franchise Finance 

The Lady is seen defining the currency structure like a public, private franchise finance. With this, the Feb-based liabilities will become the critical assets of any private bank and other bank reserves. The private banks are then seen allocating money over the economy, lending and multiplying the money via fractional reserve banking. Under this framework, we see Fed modulation slogans are now raised for money supply. The private banks are now busy allocating and multiplying their money with their real economy. The Lady then was seen extending this issue with an exciting description of the growth and shadow banking. We can see several nonbank financial companies multiplying their money via rehypothecation and securitizations.

Wrapping up 

Thus we see her paper making an evident and robust proposal for the current financial infrastructure that remains inefficient as per the Lady. Amidst all this debate, we see Bitcoin fixing all these issues. As it works in a decentralization way, there are rules and rulers in this domain. Bitcoin can make things real. It can further help change the wrong academic models, and thus, they are forced to change the real world with great accuracy.

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