Bitcoin 1, Banks 0: Bank of Canada Facing Prosecution

Journalist:
Joel Dalais @JoelDalais
March 26, 2015

The Bank of Canada (BoC), Canadian ministers and the Crown (England) face prosecution for crashing the Canadian economy.

The Committee on Monetary and Economic Reform (COMER) has been accusing the mentioned institutions and individuals. COMER has put forward that the attorney general, the finance minister, and minister of national revenue have purposefully colluding with the International Monetary Fund (IMF), the Financial Stability Board (FSB) and the Bank for International Settlements (BIS) to rob the Country of Canada. According to an article in the Epoch Times:

The suit alleges that the BoC virtually stopped providing these loans at the behest of the IMF, BIS, and FSB so private interests could benefit, presumably from interest paid on the national debt. Canada’s national debt rose significantly in the years that immediately followed.

What This Means for Cryptocurrency

In general, cryptocurrencies have amazing features that we have not seen before in our known history. One of the philosophical ‘features,’ not coded into the software is disabling the corruptible control of the banks.

This case is a very good example of how within the publicly anonymous traditional banking system there is great potential for great harm. Whole countries can, and are brought to their knees not by war, but by economic control and starvation.

A potential of block chain technology is the globally transparent nature inherent within the tech. Being able to see what your government is doing, or more precisely, what bad actors within your government are doing.

The Crown has had its appeal against this threat rejected twice, and now has until March the 29th to appeal to the Supreme Court to have the case thrown out. Interestingly, the case has not been objected against as falsified, just that the perpetrators simply do not want the case heard at all.

The BoC was providing loans to its government, without interest, as it helped finance Canada’s war effort doing World War II. Refusing to provide these loans has meant that the government of Canada has had to rely on other sources of private financing to service its debts. These other sources have come with interest, and for a government, that interest can be rather significant. From the article:

The Bank of Canada is named in a lawsuit that has survived two attempts to have it thrown from court. The suit alleges the Bank is conspiring with the IMF and others to force the Canadian government to go to private markets to borrow money.

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Double Spending to Create Debt, Then Starving a Country

There is rightly a huge fear of double spending in the Cryptocurrency sector. What this means, is that a user can spend the same coins twice, or more. A very commonly held view is that if you can double spend digital currency (spend the same coins in store A, then store B, store C, and so on), then that particular system is broken. As this would very likely cause hyperinflation and make the coins in that system worthless if the same coins can repeatedly used in this manner.

Interestingly enough, this view is not just held by Bitcoiners, but especially by Bitcoin critics.

One of the key elements as to why Bitcoin and Cryptocurrency (in general) has been so successful, is because it brings a solution to the double-spending problem. The only fault is from the potential, and very costly, 51% attack, which is not as bad as some would have you believe.

Also Read: Canada Finance Minister Has Negative View of Bitcoin

Central banks, however, use double spending as a matter of standard practice. As the article says:

When someone takes out a mortgage, the borrowed money does not come from someone else’s savings. Instead, the money is created in that instant through the trick of double entry bookkeeping. The bank records the loan on one side as a liability, and the debt owed to the bank as an asset. As long as the two balance out, the system works pretty well.

The critics against bitcoin would very likely jump on any double spend occurrence, as they do jump upon any potential 51% attack (which would allow someone to double spend). And ironically, the same critics readily accept and promote double spending in the fiat world.

Hypocrisy at Its Finest?

As long as everyone pays their loans, the systems works pretty well and basically creates wealth out of thin air.

Will this news make Canadians more interested than Bitcoin before? Comment below!

Images from Shutterstock.

Joel Dalais @JoelDalais

Joel loves Bitcoin and Digital Currency. He holds a BSc (hons) in Criminology with Criminal Justice Studies and Sociology, contributes for Bitcoin Magazine, is an Ambassador for Coloured Coins, Software tester and Advises for GreenCoinX and MultiSigX, and is Director of IBWT ("In Bitcoin We Trust"), a Digital Currency Exchange.