Understanding digital currencies via the money tree

The Czech central bank Vice Governor, Mojmir Hampl had earlier remarked:

the positive philosophical influence of bitcoin on the conservative world of central banking. True, it is far from clear that anytime soon a full-fledged digital currency (be it blockchain based or not) will be created by a central bank (some of you may be following the debate in the Riksbank in Sweden), but the last three years have seen an explosion of research on this idea in many central banks. Bitcoin must be credited for this powerful intellectual stimulus. When so many professors at the most esteemed universities of the developed world are not thinking about potential reforms of the current monetary order, we have received a stimulus from the libertarian IT guys instead. Fine.

The intellectual stimulus has been amazing as one is getting to read so much on money and its basics.

BIS researchers gave us the money flower:

The Swiss researchers at St Louis Fed a 2-D picture of different kinds of money:


Now we have money tree from Amber Wadsworth of Reserve Bank of NZ:





All these different classifications help us figure different nuances of money. This is such a refreshing change from the usual discussion on money: It is a unit of account, medium of exchange and store of value.

I should now try and summarise what each of these descriptions are saying..

Keep them coming..


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