15. Central Banks & Commercial Banking, Part 1

MIT 15.S12 Blockchain and Money, Fall 2018
Instructor: Prof. Gary Gensler, Robleh Ali

In this lecture, the class discusses a number of topics related to central banking, including fiat currencies, how central banks approach blockchain technology, and payment systems and different blockchain initiatives.

License: Creative Commons BY-NC-SA

[moyakubu]

Thank you, thank you and thank you MIT and Professor Gary for these lectures. I believe those of us that were privileged to listen to them will contribute to making our societies better in one way or the other, by using and applying the knowledge shared here.

[offwallstreet]

Congrats to Mr. Gensler on his appointment to the SEC! as always these courses are priceless!

[tcooksey]

One of the best lectures I've seen on the FED, M1, M2 and history of the dollar along with how fiat works. Outstanding job Professor Gensler!

[chillfuturist]

I suddenly feel much better about the future of our financial system. Now if we could get more people like Gary in leadership.

[bubweirich]

Can’t tell you how many times I passed over this lecture, tho I’m thoroughly involved in all topics ... IAM SO VERY PLEASED I watched this ... thank you

[JorgeRamos-xwdy]

Thank you for posting these wonderful talks. Quality education at its best. No wonder MIT is such a prestigious institution.

[pastars]

It’s amazing to be alive during this historic time

[GuitarreroDaniel]

This lecturer is very good, thanks for the content!

[sunriseeternity]

Prof. Gary Gensler, thank you for conducting such a great class. #GaryGensler #blockchain #finance #fiat #centralbank

[petepete]

Thank you Mr Simon Johnson for sponsoring this lecture series

[samferrer]

40.00 great question: how do you generate trust in the system?
The key word here is: generate

[mehdirhassouli]

amazing speaker with much experience thanks MIT

[alusinekamara]

I applaud MIT's lectures including the style of lecturing. It's a double A for me. But can I ask for one thing? Could you help us with a clearer mic system, or raise the mic closer to the mouth so that we won't have to struggle listening? In almost all lectures I have watched on your channel, even raising my volume output to its max cannot help me listen relaxingly. I must have to use some earbuds. Thank you.

[JohnDaniels]

""If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property" -Thomas Jefferson

[krihanek]

What the Central Banks want to do are not 100% in alignment with what individuals want. Just because a central authority could meet everyone's individual need doesn't mean that they are meeting that need. Crypto tokens exists because there are always gaps in centralized permissioned services.

[VasVordokas]

Amazing content thank you MIT! As to the decentralization of the central banks, so far they have always stepped in as lenders of last resort. Who will fill that role in a post fiat currency global economy? Is the idea that there will be a “closed loop” ledger network to keep lenders in check and prevent systemic risks?

[ericsmith]

If my teachers were like this guy I would have stayed in school.

[behuman]

I like Gary's face when Rob starts talking. He is like, what this slag is going on about

[DocDanTheGuitarMan]

“I can’t think of anything more dangerous to freedom than a US FED CBDC”
— Thomas Jefferson, circa 2025

[JohnDaniels]

Here is a question that no one seems to be able to answer. What would be an alternative to Fractional Reserve Banking? For example, if there were no banks and the United States Government regulated the issuance of fiat currency, how would that currency be expanded. Would projects like roads be the way money is expanded, as roads were built, currency would be created to pay for the roads. It seems strange that money is created as debt, seems like there would be a better way.