Currency historian Franklin Noll: Cryptocurrencies can be both a currency and a security

Franklin Noll, a currency historian, has claimed that the history of the US dollar over the years shows that currency and security are not a contradiction in terms and that cryptocurrencies coexist in the world.

Franklin Noll – money historian

Claims by Noll, President of Noll Historical Consulting, come as the debate over the state of cryptocurrencies continues and remains unresolved. The President of the US Securities and Exchange Commission, Gary Gensler, recently spoke on the subject.

But shortly publish Recently, Noll began using the example of the continental dollar (the first model coin to appear in the United States was minted in 1776) on his blog to back up his claim. According to the historian, the now “disenfranchised” coins were an attempt to “finance the American War of Independence by printing money,” but ultimately failed.

In addition to serving as a currency to finance war, the continental dollar was also used as collateral.

“As Farley Grubb (Professor of Economics and History) points out, Continentals are essentially zero coupons issued in small denominations. The plan failed, however, when Congress changed the original repayment terms, rendering the banknotes worthless.

In addition to the continental dollar, Noll also points to the creation of interest-bearing banknotes as essentially “an emission group related to the US Treasury Department’s Civil War banknotes”.

According to Noll, these securities should “act both like money and securities”. However, unlike the Continental dollars, which ultimately failed, the coupons were successful.

“Income bonds were created to act as currency and security at the same time. The stock coupon is issued with a face value of only $ 10 and pays 5% interest. This interest is paid when the bond matures and transferred to the Treasury. The promissory note was successful and was processed by the US Treasury Department as promised” explained Noll.

New model

When asked how long it would take for regulators to come up with the idea that cryptocurrencies can be both a security and a currency, Noll said it could take some time. “The regulators don’t believe,” he argued. To them, something is a security that should be monitored by the SEC, or it is a currency that needs to be monitored by the Treasury Department or other agency.

“I think it will be some time before regulators move on to a new model (or even back to an old model that has not been seen in a century) where the portfolio of payment methods is different or unified. In my opinion, in at least five years, ”concluded Noll.

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