In history there are times when members of the ruling elite got big enough to start printing their own money. Are we to see corporate cryptocurrencies like CokeCoin, BigMacCoin or GoogleCoin soon?
According to James Ricards last time (in 2008) the central banks could bail out the banks but next time those central banks will be the ones to save. In his new book ‘The Road to Ruin‘ he claims that in the upcoming financial crisis the IMF will be the only one with enough credibility to bail out the central banks and hence save the global financial system.
Could it be that to the problem of the ‘too big to fail’ commercial banks and to the centralised debt of central banks the solution is more centralisation of debt by the International Monetary Fund? Well, it could, but what if…
In medieval times when the treasury (the royal mint) went too far decreasing the gold content of coins and the barons were influential enough there was another solution to the problem of centralised debt:
Bigger medieval barons started to mint their own coins and accept payments only in that new form of money.
Today our global financial system is sailing unchartered territories with its unprecedented amount of debt. And today global companies are larger by size, influence and local presence than ever before. This situation enhanced by digital payment methods might reinvent the ancient solution of alternative money printing.
What if a global currency crisis wipes out the traditional currency units (USD, EUR etc.) and as a reaction McDonald’s or Apple Inc said: “…We had enough, we will not stand by watching our immense pile of cash melting away!..” And they introduce their own cryptocurrency (e.g. BigMacCoin) pegged to their flagship products (e.g. 1 BigMacCoin = 1 Big Mac).
Couldn’t some interchangeable corporate cryptocurrency bring ‘balance to the Force’?
Crypto assets of international corporations that would be locally accepted and backed by intrinsic value of their services or products could serve as cash and also as store of wealth.
Yes, this is a brand new possibility but very feasible. The tech environment (smartphone penetration, blockchain, fin-tech, etc.) for such phenomenon has never been as ready as it is today. So this will eventually happen in some form one day. And let’s ask: Why wouldn’t a global corporate crypto asset be popular? Who wouldn’t keep some money in CokeCoins in a world where inflation or deflation, Trump or Brexit could come and go but a can of Coca-Cola steadily stays what it is: a form of peaceful continuity in a hectic world.
As a sales consultant of emerging markets I can tell: most international brands are already more trusted than the local currencies.
Yes, there are global crypto assets like Bitcoin already but none of them is backed by global brands. And still having a look at the success of current cryptocurrencies with shady or unknown origins I am sure that there is a big community that cannot wait to put some savings in such corporate crypto assets once they start to exist. From a crypto investor’s point of view it is very hard to find any safer and still liquid financial haven.
So summing it up: there are a long list of benefits of issuing corporate crypto assets but big brands are famously slow to move. So who knows? May be a global financial turmoil would call the attention of global businesses to embrace the crypto asset possibility…
…more on crypto assets