Interview by Joseph Sotinel for the French Website BFMBusiness about Electronic Money (with a Translation of My Bit)

I was interviewed on Wednesday (December 11, 2013) by Joseph Sotinel of BFMBusiness for an article on electronic money: “Les banques traditionnelles vont-elles être tentées par le bitcoin?” (“Are traditional banks going to be tempted by bitcoin?”) The article, like the title, is in French. Here is what I am quoted as saying:

Une monnaie électronique permettrait des taux d'intérêts négatifs

Mais un acteur manque pour élaborer une monnaie électronique: les banques centrales. “On ne peut pas avoir de monnaie gérée par un algorithme ou un robot aujourd'hui sans avoir d'inflation”, explique Miles Kimball, avant d'ajouter: “Le bitcoin, en soi, n'est pas très utile, mais montre ce qui peut être fait.”

Selon lui, si les banques centrales se convertissaient aux monnaies électroniques, elles gagneraient de nouveaux outils monétaires, comme la possibilité de fixer des taux directeurs négatifs.

“Il faudrait alors des régulations financières très strictes”, reconnaît l'universitaire. En attendant, son idée gagne du terrain. En septembre, la Banque de France l'a accueilli pour un séminaire au sujet de la monnaie électronique.

But I didn’t say that, because my French isn’t that good! Here is my translation, done with the help of Google translate, having listened and talked back to the three levels of Pimsleur’s French CD’s–and knowing what I said in the first place. 

Electronic Money Permits Negative Interest Rates

But there is one category of actor that has failed to develop electronic money: central banks. Today, we cannot have money managed by an algorithm or a robot without inflation [or deflation], explains Miles Kimball, before adding: “Bitcoin would not work very well in that regard, but it shows what can be done.”

According to him, if central banks converted to electronic money, they gain new monetary tools, such as the possibility of setting negative rates.

“It would then be appropriate to have very strict financial regulation,” recognizes the university professor. Meanwhile, his idea is gaining ground. In September, the Bank of France hosted him for a seminar on electronic money.