Hints and tips:
...Yet, Andy Haldane (“The real scandal of central bank digital currency”, Opinion, August 1) wants to deprive the BoE of about £5bn per year of “seigniorage” that it earns by issuing non-interest bearing banknotes...
...Federal Reserve, the dangers should have been flagged by financial developments in the UK, and by the (unrealised) shock to the Fed’s own balance sheet and the incipient operating losses and cessation of seigniorage...
...Prior to that date, seigniorage referred instead to the “profit” which the state generated when it minted coins in a metal that was worth less than the face value, allowing the government to finance its...
...The name of this tax — seigniorage — adds to its mystery and oddity. The oddity does not end there. Seigniorage is a stealth tax that is both large and highly regressive....
...Letter in response to this report: The BoE needs its ‘seigniorage’ earnings / From John Whittaker, Economics Department, Lancaster University, Lancaster, UK...
...The immediate answer is that central banks’ most valuable asset is not on the balance sheet: seigniorage, or the profit on manufacturing money....
...The platinum coiners argue that seigniorage is an ancient right. It is. But not at nearly the scale that the coin would require....
...But this is contradicted by the fact that central banks are all structured precisely to make money by seigniorage from their currency monopolies....
...shortfalls should not matter as central banks do not aim to make profits and cannot go bust when they have the power to print money, earning revenue on the production of currency through a process called seigniorage...
...The one inescapable fact is that central banks cannot recapitalise themselves in the event of insolvency through seigniorage without generating unacceptably high inflation....
...Christiansen said, pointing out that central banks do not aim to make profits and cannot go bust when they have the power to print money, earning revenue on the production of currency through a process called seigniorage...
...And luna would have value, because each luna would offer a vote on how to spend some of the seigniorage — profit — from minting terra. The project failed....
...Seigniorage profits are usually accounted for as an income stream, said Mr Bibow. However, the BdL took a different approach, recording expected profits from seigniorage as an asset....
...The US Mint might want to resort to some currency debasement, replacing nickel with copper, not only to save on seigniorage, but for the sake of the nation itself....
...There are, however, two historical precedents for seigniorage that high: siege coins, and tokens....
...The “fee” they received was their part of the “seigniorage” from money creation....
...This is a kind of seigniorage — the profit from manufacturing money. The city gets monetary profit, but no monetary control. This is a departure....
...In the Chinese case, when Alipay and WeChat were forced to join NetsUnion, this seigniorage revenue would have been lost, potentially threatening the viability of the companies’ business models....
...A second snag is that the seigniorage asset that the bank has chosen to record on its balance sheet is completely illiquid....
...Moreover, Bank of England notes generate so-called seigniorage profits — the difference between the amount central banks receive on issuing money and the much lower cost of printing it....
...This would have the additional advantage that should inflation and interest rates need to rise in future, profitability would be maintained along with seigniorage or the profit central banks make from printing...
...a debate as to how to treat seigniorage in central banks’ accounts....
...Additionally, BdL’s biweekly published balance sheet transparently references seigniorage balances as being part of other assets....
...Seigniorage, the difference between a coin’s face value and the cost of production, has averaged at 44 cents on every dollar over the five years to 2019. That is not true for every coin, though....
...This rankles in the EU, and not just because of the traditional concerns about seigniorage — that is, the revenue earned from the production of banknotes — and hedging costs and so on....
International Edition