According to the latest comment from former Brexit -Minister Jacob Rees -Mog on his Youtube Channel, Bank of England risks shaking public faith in the pound if it pushes forward with new banknotes.
He claims that confidence in fiat money is based on shared faith rather than inherent value. His warning comes when the bank plans to launch notes with modern images instead of familiar figures.
History of hard money
Rees -Mogg tracked paper currency back to the 1100s China, when early notes first appeared. He pointed out that the British pound’s purchasing power was barely offered, thanks to its connection to gold from 1660 to 1914, thanks to its connection to gold.
However, unbacking paper has a track record of inflation. He said that governments that print more money act as a hidden tax on savers and bonds.
https://www.youtube.com/watch?v=LI3l1S5VKK0
The illusion of value
Based on reports, Rees -Mogg held a modern coin along with a silver like Shilling from Charles I’s Reign. He noted that older coins kept value through their metal content, while today’s base metal pieces rely entirely on trust.
He warned to “believe that paper money has inherent value is a dangerous illusion”, since notes and coins have no value outside the system that accepts them.
Image: Experian
Bitcoin and gold compared
Rees -Mogg drew a line from Gold’s long history to Bitcoin fixed selection. Gold grows by about 1-2% per year through mining, and Bitcoin cannot exceed 21 million coins.
He suggested that this scarcity provides both assets “fair value.” Bitcoin’s decentralized protocol leaves no room for extra symbols, unlike Fiat, as governments can flood with new notes at any time – especially after the 2008 financial crisis.
Image: Blueberry Markets
Design psychology
He claims that the appearance and feeling of money is important. By replacing familiar monarchs with abstract art, he said, weakens continuity and can be spun away on trust.
He warned that when confidence collapses, including the currency and pointing hyperinflation In Weimar Germany and Zimbabwe as a gloomy example of what happens when people stop believing.
Crypto Community Reaction
Based on social posts, many cheered in the crypto world Hans Nick to Bitcoin’s “Hardness.” While Rees -Mogg stopped calling Crypto a better alternative, his focus echoed on scarcely long -term arguments from the digital -pass -advocate.
His comments add a mainstream vote to debates about Bitcoin can serve as a hedge against inflation and overall in the central bank.
Rees -Mogg’s warning reminds readers that the strength of money goes beyond design. Confidence at the time depends on how well the economy performs and how clearly central banks communicate.
Image from bitpapa, charts from tradingview
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