Some Thoughts on Fedcoin – a Fed backed cryptocurrency.

Since the invention of Bitcoin some have given significant thought to cryptocurrencies issued by central banks or governments. Recently the idea of Fedcoin stimulated a lot of discussion after David Andolfatto from the Federal Reserve Bank of St. Louis presented the idea at P2P Financial Systems 2015. David also discussed the idea in a post. As a concept the idea is intriguing, but a flurry of questions about details have quickly been raised. Among those are issuance, distribution, peg to the dollar, miner rewards, restriction on users and miners, monetary policy and others. I will attempt to address these issues as I see them. Why Fedcoin? Think of it as digital cash, just like Bitcoin but without the volatility. It

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