Thinking a little more about what a consortium of multinational corporations might do in fhe event of another monetary seize-up like 2008, I cannot think that they’re going to be inhibited in setting up a new (digital) currency under any sort of misapprehension — which most people believe — that only central banks can issue money. That is not so. Whatever has intrinsic value and can be easily carried around is money. It doesn’t need any sort of official blessing.
In the case of the 2008 crisis, and because the banks had run out of money, then governments’ priorities were to ensure that the banks’ cash machines had money in them when people went to work on the Monday morning.
In a new monetary crisis which might be in danger of paralysing the whole world trading system, the consortium’s first priority would be at the other end — keeping the big wheels — themselves — turning and then the others to follow so that everything by way of existing trading contracts could continue. While a new currency was being achieved, ordinary people would have to be ignored for a few days even if this meant they couldn’t buy food for a while
So long as the members of the consortium issue the new currency up to the value of their cash reserves in buying assets that are easily saleable — and no more — then their new digital currency would be totally trustworthy. If, for example, they chose gold as their easily saleable back-up then the world price of gold would rise, probably steeply.
This would be a double incentive for the consortium’s suppliers and customers to change any cash savings they had into gold in order to buy the new currency. In fact, those who moved very quickly would made immense profits as the world price of gold rose. These would only tail off as the furthest suppliers in the world economy (food shops) were reached with the new currency.
Because, presumably, person-to-person transactions would be possible, then evasion of paying taxes would be theoretically possible. If governments were tardy in changing their national currencies into the new currency then public pressure would force them to as soon as wages were being paid in the new currency and food in the supermarkets priced up in it.
We would then be back to the same healthy monetary condition that existed before the Bank of England (BoE) was founded in 1696 and obtained special privileges from the British government. Among other things, this allowed the original shareholders of the BoE both to be able to lend their gold to the government and print an equivalent amount of money to lend to private applicants — thus doubling their money almost overnight!
This was the first confidence trick that central banks have played. They have several more up their sleeve but what they would like to do now is to resume their usual one. This is to set basic interest rates at such a level that they’re always lower than the rate of inflation so, as far as their national debts are concerned, they can pay back good money with bad.
I would be very surprised if Google, Microsoft, and Apple, among other multinationals were not quietly discussing what they could do in the event of another monetary crash.