E-Cash Spells Doom For Central Banks
Leading academics have welcomed comments made by a senior Bank of England official that Internet-based currencies could drive central banks to extinction. Speaking at a banking conference in Wyoming recently, the Bank of England’s deputy governor, Mervyn King, admitted that emerging forms of currency used in Web-based trade could fall beyond the control of the world’s central banks. Losing control of the money flow will naturally mean the loss of economic power and could wipe out central banks altogether, according to King. Ian Angell, professor of information systems at LSE, said King’s comments are a refreshing change from the traditional lack of forward thinking exhibited by ‘mealy mouthed’ Bank of England officials. Angell claims King’s prediction that central banks could become redundant will come true.