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Matt Levine

The Economy Is Full of Crypto (And Collective Delusion)

Finance has become untethered from productive work.


We have talked a few times around here about a socialist republic that has been hit hard by sanctions imposed by the U.S. government and that, in response, is planning to issue its own cryptocurrency to raise money. I mean Venezuela. Venezuela's government is the one that is planning to issue a cryptocurrency to replace money that it has lost due to the policies of the U.S. federal government. In other news:

"Berkeley is the center of the resistance, and for the resistance to work, it must have a coin," says a city council member, in a sentence that makes as little sense as every other sentence in this story. You can just sell the municipal bonds. Why sell "tokens" that are backed by municipal bonds? Fine, fine, you want to issue the bonds "on the blockchain"? I will allow it, you gotta keep track of the bonds somehow, that is some harmless buzzwordery. But throwing in the buzzword "token" is, I think, a bridge too far.