Business Insider reports that, according to a draft document it obtained, HSBS is discussing the idea that central banks could push for blockchain-based digital currency systems in order to capitalize on transaction transparency and create a clearer picture of a country’s financial system.
That information could then be used to conduct so-called “helicopter drops” – targeted cash injections into the real economy via consumer bank account deposits or tax refunds.
Supporters of the concept say that the money would move into the real economy faster compared to the private credit sector route, a move economist Milton Friedman famously compared to flying over a town and dropping bills from a helicopter.
As BI quotes the HSBC document:
“If we move towards an economy where all transactions become recorded in real-time on a blockchain type of technology, it will not be too dissimilar to the current eco-systems that many e-commerce giants have around the globe.”
“Online e-commerce stores are able to give out loans to merchants without collateral, because they know all the flows already from the merchants’ point of view: from how much people are spending to the conversion rate of pages viewed to purchases,” the HSBC note continues. “In the same way, a modernised monetary transmission system, based on real-time big data analysis through blockchain, could allow the government to balance the economy more efficiently and systematically.”