Superb paper by Ben Fung, Scott Hendry, Warren E. Weber (Bank of Canada).
It looks at this history of currency circulation in Sweden and compares it with Canada and US. Just to put things in perspective, in Sweden government currency preceded private currency. Whereas in Canada and US, private notes came before government. They also try and figure what do these experiences mean for digital currencies:
This paper examines the experience of Sweden with government notes and private bank notes to determine how well the Swedish experience corresponds to that of Canada and the United States. Sweden is important to study because it has had government notes in circulation for more than 350 years, and it had government notes before private bank notes. Several differences between the experience of Sweden and that of Canada and the U.S. emerge. (i) Swedish bank notes were safe; in some cases, those of Canada and the U.S…
View original post 138 more words