Hence, the function of providing one is an essential governmental function on a par with the provision of a stable legal framework.”10 But that does not mean that private sector money is either impossible or undesirable. Forgotten amid the hype surrounding VCs is that a widely accepted form of private sector digital money already exists: bank deposits.
President Bush, in making the case for the $ billion rescue package warned that “the entire US economy was now in danger”: he cautioned that the current crisis could wipe out banks, empty retirement nest-eggs, send home-values into a free-fall and create millions of new jobless. Warren Buffet called the crisis “a financial Pearl Harbor”.