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To: Alex who wrote (39696)	8/27/1999 1:17:00 PM
From: John Hunt	Read Replies (1) \| Respond to of 116816

Central banks under threat << Many of the world's central banks may soon lose their independence or change beyond recognition, according to the deputy governor of the Bank of England, Mervyn King. Currency unions, new enthusiasm for so-called "currency boards" and technological changes could soon do away with the traditional role of central banks. >> ... cont'd at ... news.bbc.co.uk ***** OT - Bank e-mail virus insults investors << Japan's Fuji Bank has apologised to some of its biggest investors world-wide after inadvertently sending them e-mails describing them as "jerks". The bank sent out an e-mail to its key global investors to tell them about the planned merger with Dai Ichi Kangyo and Industrial Bank of Japan. But the e-mails contained a virus that meant any of the big money men and women who opened it got a surprise message "from Fuji Bank" telling them they were "a big, stupid jerk". >> ... cont'd at ... news.bbc.co.uk Nice PR move on Fuji's part. :-))

To: Alex who wrote (39696)	8/27/1999 1:36:00 PM
From: Rarebird	Respond to of 116816

Central banks under threat The Bank of England: Soon obsolete? Many of the world's central banks may soon lose their independence or change beyond recognition, according to the deputy governor of the Bank of England, Mervyn King. Currency unions, new enthusiasm for so-called "currency boards" and technological changes could soon do away with the traditional role of central banks. news.bbc.co.uk Speaking at a conference on monetary policy in the United States, Mr King said that central banks might be "at the peak of their power". There are currently 172 central banks in the world, but Mr King predicted that there could "well be fewer in the future, and their extinction cannot be ruled out". New monetary unions Mervyn King: In the future, countries could make do without central banks The United Kingdom and therefore the Bank of England have so far stayed out of Europe's Economic and Monetary Union, but Mr King said that many countries could follow the example of the European Central Bank. He said more regional monetary unions could emerge. Other countries might decide to create currency boards, where they peg their currency firmly to that of another country, e.g. the dollar. Argentinean politicians, for example, pondered recently whether to opt for a total dollarisation of their economy, replacing the country's peso with the US dollar. Technology killed the bank A much more powerful force, though, could be technological change. Electronic banking could be the death of central banks Mr King said that the impact of electronic money transactions in real time could wipe out the traditional role of central banks as monopoly suppliers of base money. "There is no reason, in principle, why final settlements could not be carried out by the private sector without the need for clearing through the central bank. "Without such a role, central banks, in their present form, would no longer exist, nor would money," he said. Back to the future And the economy could indeed do without many of the world's central banks. The European Union has - so far - survived the virtual disappearance of Germany's once mighty Bundesbank, which is now a subsidiary of the European Central Bank. One hundred years ago, as few as 15 central banks did all the business that needed to be done. "Societies have managed without central banks in the past. They may well do so again in the future," Mr King said.