>> the committee will come to order the chairs authorized to declare recess at any time and all members will have five legislative days to submit extraneous materials to the chair for inclusion in the record. this hearing is entitled the future of money. currencies future. i recognize myself. today the future of money and

how digital currency may feature in it when discussing future it is point to have a firm of the characteristics and history to define money to restore value a unit of account. objects have been used such as seashells or giant stone tablet and the prisoner of war camps rice and whiskey and tobacco corresponding warehouse receipt circulated in the colonial period. prior to america's independence and imported gold and silver cheese and trade in those issued their own species before they in the continental congress began to ask you. but it was declared the standard currency with the

coinage act of 1782 changes of dimensions and design notably with the implementation and subsequent abandonment of the gold standard in recent decades money has been electronically stored in baked deposits and transfers with credit cards and the internet. crypto currency however was designed to be something different allows users to store value that is unlinked from fiat currency is the central question today are digital currencies anyway to hold and transfer value with a limited impact for each appeal? or a derivative of it have a

far-reaching transformative effect to change our economy forever? it has existed for a decade over the parents of tee5. in two garner the mainstream media but however media and consumers take note to the right of value with bitcoin grabbing headlines with the valuation of $20000 last december also reported with bitcoin involvement on the online black-market donations funding wikileaks or are hundreds of thousands that are being exchanged and reports that hackers of stolen $1.6 billion of crypto currency accounts over the last seven years. congress used to pay close attention the capital markets to examine that event to hold

a hearing. >> i am interested for what impact on monetary policy and international system. we will discuss its use for the united states and abroad some like vietnam and china have banned them altogether others have fostered it but mostly have a hands-off approach with regulatory guidance and others including tunisia and ecuador how should they approach this technology is of great importance what they highlighted in the letter to congress that may hold

long-term problems with the innovations promoting a faster and secure payment system somehow suggests that crypto currency is a catalyst for physical currency and the foundation is a cashless society others to the european central bank and the chair of the big four international committee in the financial times title bitcoin is not the answer to the cash flow society that the currency is a barrage. crypto currency has attracted advocates and critics and skeptics entrepreneurs and investors for attention from media and government agencies there are well over 1000 crypto currencies of various characteristics comprising

over $250 billion total market capitalization is at the future of money? is it a bubble that will burst or a passing fad? the sorts of questions we will attempt to address today with our witnesses. the chair recognizes mr. foster for five minutes for an opening statement. >> thank you mr. chairman. i will be brief because i am very interested. i look forward to the testimony of the witnesses that are not only are crypto and potentially with those currencies and i'm concerned if a significant central bank could issue a digital currency has the potential to supplant the dollar for transactions or

as a reserve currency around the world and despite that. wanting more -- exploiting countries like russia is not really the country that could support the dollar but now with digital euros i think the entire world would rapidly adopt that for digital transactions which have benefits to it would have benefits to consumers in a number of risks associated with that as well. there is really a credible threat should supplant the dollar. we have to be prepared to respond to that threat. i look for to hearing from witnesses on the economic feasibility of another currency and whether it could be the catalyst in such transition. i would also look forward to any thoughts of the witnesses may have on the decision points when you decide to create a currency.

whether or not trades could be busted in the same sense that a credit card purchase can be broken. and who who makes that call under what circumstances. these are the really important decisions that cannot be invaded. the issue of in a minimum 80 is really crucial. as well as what sort of authentication a person well had to present to transact that. i look forward to this hearing very much and i yelled back. they recognize it for the remainder of the time mister sherman for opening statements. two and half minutes.

schematic block chain is a good technology. there is nothing that can be done with crypto currency that cannot be done withs sovereign currency that is the role of the u.s. dollar is a critical component of the u.s. power. it brought iran to the negotiating table and then we argued about whether we got a good enough deal or not in the jc poa. we would have nothing if it would not had been for the role of the dollar. we should prohibit u.s. persons from buying or mining crypto currencies. mining alone uses electricity which takes away from other needs. and adds to the carbon footprint. as a medium of exchange crypto currency accomplishes nothing except facilitating the trafficking.

some of the supporters delight in that. if you can disempower at the u.s. government from being able to prevent terrorism and narcotics track thinking. you have somehow struck a blow for liberty. that is reason enough to be in it. we have certain animal spirits in our culture. a willingness to take a risk. this can bein harnessed by gambling casinos which at least a very high local taxes created a city of las vegas out of a debtor --dash make desert. the start up enterprises and provide -- provide the technologies of the future. or they can be spent doing nothing but helping to create a market for tax invaders.

at a very minimum we need investor protection. in the offering them. it would be considered out right fraud and reason for incarceration if they were issued by that. because we are a reserved current see. there are people that are alive today because of the profits the u.s. government makes on that. all of that gets diminished with crypto currency. i yelled back. >> today we welcome the testimony of>> rodney garrett

who holds the chair and academics. he has served as a technical advisor to the bank for internationalal settlements. during his time at the federal reserve bank of new york heat: lead the virtual currency group for the federal reserve system. after leaving he consulted for our three a proof of concepts for a wholesale interbank system. dr. norbert michelle who is the director for data analysis at the heritage foundation where he studies and writes about that. michelle was a tenure professor. teaching finance, economics and statistics.

with the trade policy. with the international trade and economics. he is a former head of the china division. the numerous collective volumes as well. and on china and india. the senior fellow. welcome back to the committee providing thought and policy.

previously he was president and ceo. they received the masters in philosophy. from princeton university. with the oral presentation of the testimony. it will remain part of the record. you are not recognized for five minutes. you can just push the button there to turn on your mic. the convenience of electronic transfers has led to a decline worldwide for the use of cash. where they were transferring commercial bank deposits.

they had been adopted by over 60% of the population. they had fallen below 2% by value. they are introducing their own faster payment systems. at the same time paypal and then mount and other private mobile payment platforms continue to improve convenience and speed by leveraging conventional financial market infrastructure. the likely that the use of cash will continue to fall. it's worth noting that there is a tipping point even if consumers seek to use cash. businesses and banks well not want to deal with it. then what happens. people will be content to transact primarily bank deposits and banks will be business as usual with a much smaller cash component to the monetary base. in the third possibility is that people will turn to

privately issued crypto currencies like bit coin. the adoption rate of bit quite well be the alternative form of money that it provides. if they head in adequate access to medium of exchange they may be more inclined to turn to alternatives. if the central bank offers a digitalut form with sufficient properties. they are currently evaluating numerous options not just in response to the shift away from cash but also for meeting core objectives in the enhancement of market structure. ongoing proof of concept by considering the use of central bank crypto currencies and wholesale systems only. they are driven by efficiency and cost considerations. i will focus on the merit of

the widely accessible. crypto currency. it can be used for person-to-person and retail transactions. the retail central bank currency could transact like bit coin but instead of having a fixed money supply role they would control the creation and destruction of these coins.ow there be one-to-one convertibility with cash in reserves. it would not suffer from the high price volatility. it could also choose to implement the currency out of the block chain. it could also be performed by invented actors who are accountable for their actions without costly proof of work. we propose giving the public access to the positive accounts. over three decades ago.

number of things have changed since a proposal. and that mentioned the use of cash is a client a major financial crisis may have changed some people's access. in the advancements offer the potential. first the peer-to-peer access could allow central banks to provide digital money properties similar to those. whether or not the central bank would want to do this is a complicated issue. against concerns related to tax invasion and other criminal activities. there was the potential to improve upon cash. the terms and conditions of traits in transactions. without relying on third parties. this is particularly useful for transactions that span multiple legaless jurisdictions.

it would have to balance potential risks. and is also possible that could it could produce healthy competition. the risk of determination. any new form of money more like cash. thank you and i would be hence happy to answer any question. you are now recognized for five minutes. members of the committee thank you for the opportunity to testify today. mi and the views that i express today are my own they should not be considered as any official position.

they've rapidly expanded since 2008. and their underlying technology distributed database that allows digital assets to be transferred without the third-party intermediary. and the potential to transform the financial industry. it should be fostered not smothered. my remarks today will provide for specific points related to the use of crypto currenciesin and other alternative forms of money. the means of payment have become more widespread as technology has changed but paper currency, cash is still widely twi used form of payment. it has been widely and steadily predicted since at least the 1970s yet it remains a preferred method of payment. cash is still the more frequently used form of payment. it plays a dominant role for small transactions. it also remains the leading payment instrument.

and entertainment and transportation expenditures. as the charts and the wristen testimony show. but the volume and value in denominationss all the way from one to 100-dollar bills have steadily increased since the 1980s. that's increase. so the retail prices establishments. they do so at their own peril. the danger and the threat of consumers using an alternative form of payment it's exactly as it should be. competitive processes should take place so that businesses and consumers can determine the best sense of payment. though it is in the infant stages should be embraced. brings me to my second point that the federal government should not step in and tilt the playing field. it should treat crypto

currencies and all other forms of money neutrally. on any particular alternative form of money. it should remove all legal barriers to using alternative forms of money. arn it would be a major step towards a love loverly playing field. with the alternative forms of payment. to further level of the plainfield they should even consider allowing u.s. postal service and other government agencies to accept the alternatives. my third point is that these competitive forces are the forces that push entrepreneurs to integrate and improve products specifically to satisfy their customers. the expose weaknesses in existing products. they can and should be use to improve money. exposes their money to the mistakes of the single

government entity. from viablee points of entertainment. within any government agency. centralizing the technology of the central bank. offers a no traditional base. they should do all they possibly can to ensure that the central bank never offers retail bank accounts to the public whether it be a central bank crypto currency or a more traditional digital form of money. they would give the federal government a complete monopoly of money and effectively nationalize all private credit markets. even a staunch advocate for

phasing out cash. admits that the biggest threat to the value currency is often the government itself.. that is quite frankly an understatement. given the federal government the power to directly take money from its citizens with a few computer keystrokes. thank you. you are recognized for five minutes. to testify in front of this. two years ago i face an important choice. whether to spend the afternoon buying bit coin working on the digital currency.

i have no a bit coin but i do of a paper about the implication of a digital currency. ca on three questions one should the government or the federal reserve is something that that crypto currency could provide. what are the implications in terms of the monetary policy objectives. and most importantly financial stability. what are the implication for the law in the u.s. global financial system. it was useful to keep one distinction in mind. it could use the same crypto currency. and then they could essentially created in the ether of the digital asset.

it does had backing. b now there are many proponents of the economy moving the digital forms and i think there are some arguments about how that could reduce activity in the economy. improve the tax base. in some wayssh make monetary policy even more efficient. where they're not able to use interest rate policy anymore. is fastly becoming feasible. and this is what they had suggested. this would make a certain aspect a lot easier. it's worth thinking about money in the broader sense. money is created by the central bank.ed but also to a much greater extent by commercial bank.

as new technologies eat away at the scene standard business model a bank. they start playing a major role. the question remains what role will banks play because those are the institutions that they have come to. and a very important part of money. the other aspect in terms of thinking about right now they have no retail payment system. they could will end up in the scenario. they start managing at the the retail payment system as well.arnt it is worth thinking about the

alternative. if we have a situation where both the retail payment systems are managed through technology. which might become feasible. then what happens in the time of crisis of confidence. in normal times. it might lead to significant gains in efficiency. the management of these payment systems. the issue of trust in the bank. they are thinking about introducing that digital currency. basically to provide a backstop. to make sure that it's not all in the private sector. there are other concerns related tos arbitrary.

it could be facilitated but also potentially also make underground activities easier to execute. on the u.s. dollar. i think it's possible that if other countries have their own currency in digital form. you could have that meeting with exchange. what is the global safe haven. the ability to serve as a safe haven. and that requires u.s. institutions. i thinktr for them to remain secure for now. members of the subcommittee.

it is a really interesting question. to answer require some speculation and guessing along with thinking we hope. among the intriguing questions is whether another crypto currency could become a successfully privately issued yet currency. that would mean been widely accepted. constantly used in payments and settlements. and people going around and not asking what that price a bit coin but what is the price of this in bit coin. the history of money demonstrates a wide variety of monies that have been used. numerous historical examples. to my knowledge there has never been a private fiat currency. for private currencies and example.

the state chartered banks. or, in the 19 century. you might have carried in those. also to know. they were banked by the loans in investments in capital of issuing bank. the dominant historical trend in money has been to create evermore central bank. what create more competition and currency. in the famous economist. i do get might be a good idea but i don't think it will happen. i believe it's easier to imagine. that is towards even a greater monopoly by the central bank through digital money. mr. foster make the point is

not only our own central bank but other powerful central banks we might think about in this context.. the general public. in addition to carrying around its paper currency in the appeal of this idea to central banksar as a natural. it would greatly increase their size, their role in their power. there is not much singing in the way. with all private banks.

that's where tried to develop out of. could a federal reserve digital deposit account system grab half of them might not. it would be $6 trillion which would ask that the balance sheet to $10 trillion.an it's to remember that if you had deposits on one side. if something else on the other side. so what would they do with this amount of deposits and as my friend said. it would have to make investments. i think we can safely predict the credit allocations with the highly t politicized and the taxpayers would be on the hook.

the risk would be directly in the central bank as opposed to the support of something else. it is one of the worst financial ideas of recent times. it's still quite conceivable as the possibility. in conclusion i think if we look at the money of the future i don't think the fundamental nature of money will change. it might be a private currency backed by reliable assets i don't think it will be a private fiat currency r like bit coin and as we consider all of this an increase in the power of a central banks which also had too much.

thanks a lot for being able to share these views. thank you for your testimony in the chair now recognizes himselfou for five minutes for questioning. let me just start with the idea of crypto currency supplanting or displacing u.s. federal reserve notes as the world's reserve currency. and this is for anyone that wants to try just mac time in. and what applications does that head. why the u.s. dollar is as strong as it is in and is demand as it is. we have an economy with a strong property rights

especially relative to many other countries in the world. incredibly developed industrialized infrastructure here.tr and as long as you combine those things and have a dynamic economy. including the money that is predominantly used is going to be sought after. that's what you should focus on if you want people to want our money. there's also a downside to being the world's reserve currency. that is frankly not a good idea. that's just not the way i would think of those things. does anyone else want to comment on those things. the united states does had and continues to have that was an

advantage that arises at a social infrastructure and all the things they said. they contract a strong financial system.lat and of course a powerful government. we talk about bank notes in u.s. dollar paper currency. nonetheless i think the electronic forms of money will become evermore dominant. it is difficult to see an asset that has no value by the government the initial promise of something like bit coin is an effective medium of exchange. it's a very inefficient and very costly.

many of the nonofficial crypto currencies that are gaining more traction and the ones that are backed by that fiat currencies and other forms of bank team. the u.s. dollar is maintained in its dominant role. in the trust. and maybe that as a principal reason why it's not the best medium ofyb exchange. and it's very core is our crypto currencies money and i invite anyone to chime in on this. if not do they substitute as

money. it's arguing that it's a property. that is necessary for regulatory purposes. it's a very good as the medium of exchange. if we think the price is going to go down i don't want to receive it. they understand and undermine

this. >> my time is about ready to expire. it's all required to improve the quality is to qualities to get to the money. they start using it for transactions. in my start to decline. adoption rate has a lot to do with it. that's only one crypto currency. i would just say the to say the adoption rate is a lot to ou with it. recently there were reports in the press 20% of all bit coin

has been lost. it would be a tremendously profitable enterprise. that's in addition to the interest expense. whatever country starts doing this. as you can have a permanent cash cow. for any issue that you like to have that loss or put away like that. they were kind --dash my kind of currency. and in then some concern here that there be a big government

monopoly. if there was no interest paid on these things the average person would maintain just a convenience level amount of this. and not have all of their networks it seems like you would just head a reasonable fraction of everyone's net worth it. and then they would separately. in a very competitive banking and investment environment allocate the main part of that. do you see anything wrong with that analysis. the notion that is being floated right now is of non- interest-bearing departments. there are different ways of thinking about this. it is of a non- interest-bearing. it's highly unlikely because

it would be a nominal yield. in regard to your concern about potential technological malfeasance echoes back to the central currency. one could argue that digital forms of currency could reduce the paper currency but they are on the flipside. there make them very vulnerable to technological hacks. because of the volatilities that are out there. the promise --dash make the promise of block chain. it would prevent a lot of malfeasance. i think it's a kind that will probably be worried about. authenticating the person's

sin has access. how you really authenticate yourself. how does sweden actually handle this issue in their proposal. in the swedish proposal to swipe fees just disappear and you can pay how does this we did deal but the problem that someone steals your cell phone or identity somehow. and proceeds to spend a bunch of money. is there a mechanism to get your money back. when a fraudulent transaction is taken away from you. i think if you are regarding to the current swish system it's one that is run by the central banking corporate in the event that your cell phone was lost you'd still had access to go to the bank. and reveal your identity and get your account reinstated.

or you could probably pry just do that online. they had issued a report. and among those technologies is the restored technology. that is an essentially an account balance with two big players. these are everyone has a balance on there. and i pay you by transferring the sum of my balance and only pet to you or is there some governments operations behind it. or central-bank operation behind it. with balances that are already at your bank account. the registered base system.

or a value -based system. it could be like a credit card. thank you. mister williams from texas. thank you for today's hearing. we are and the in the excited first stages. it has become apparent to me that block chain and other new technologies is the digital technology. as congress determines how to best treat these emerging products we must be mindful of that product that they have. in the free enterprise. it's important that policymakers keep in mind that governmental interests. by those who wish to do us harm.

i look for to discussing with experts today on they on the best pass forward. he said in your testimony that they should work diligently to eliminate those. as well as new implication for application for block chain technologies. what are the impediments to that. what can congress do about that. i think the main one is capital gains tax. the object contain that. every signal transaction that you would make. the regulatory side. if we look at that. and that money laundering laws. ensuring that nothing is treated friendly yes it is true that criminals had used bit coin but criminals had used airplanes, computers and automobiles.

those components. are the main barriers to a more widespread adoption's of this of this thing in the u.s. the next question is dr. gary. your testimony has three options. in the event that cash is no longer available to them. use bank deposits. demand direct asked -- access. and thirdly, turn to the privately issued crypto currencies. what would cause consumers to choose options two and three when option one is a familiar technology that is already becoming increasingly convenient. i agree with what you said at the end there. there is nothing wrong with our current banking system. and as i mentioned in my testimony new means for transferring that. a constantly arising.

not only for the business payments but peer-to-peer payments. in those scenarios i outlined. the first scenario is probably the most likely. as it disappears that starts to create problems. the governor of the bank recently wrote an opinion piece. some of the pain points that occur. what i'm really talking about is that a future scenario. the central bank has to decide if it wants to withdraw completely from providing a payment device or whether it wants to offer some sort of digital alternative. one of those digital alternatives could be some form of crypto currency. it's offered by the central bank. one would be if you wanted to

allow some type of privacy component within transactions of this currency. these are the options that the central bank well ultimately face in my argument that these are something that we should be prepared for. let me say this with you. with the dozens of digital currencies out there. all the different attributes that make it difficult. what is the appropriate framework for us to use in congress to approach the legislation. that is a very difficult question. >> people have the ability to issue the private currencies.

i think just like dr. michael said. one can't make something illegal just because it might be used for illegal purposes. what i'm arguing is that i believe that the central bank does a good job at providing payment services not only does at the interbank level but also for small payments. i think they should continue to provide that. in the future date that might involve some of these new technologies but issued by the central bank. to remain competitive with those payment devices. as opposed to some of the private currencies which are less able to monitor. >> the to make the gentleman's time has expired. it seems like some think tanks demand that we do things that

make the federal government less able to meet its financial obligations and then they demand that we have an extensive and expensive foreign policy that costs well over a trillion dollars there is no way to square that unless we abolish social security and medicare. we have moved from a goal from 2000 years ago to drafts and paper currency symbolizing gold to where the paper currency itself has value and now for many decades what has value is paper that represents the paper. as recently as the 1930s could be converted into gold i can no longer be.

we now have an opportunity to disempower the federal government. to move that power to those hostile to it we need a medium exchange we need a unit of value the witnesses have demonstrated that the dollar is much better at that for honest citizens. but crypto currencies offer unparalleled advantages to nations that the u.s. government wants to sanction for their terrorist activities to tax innovators and criminals. mister pollock, this seems to be a solution, looking for a problem. what can honest citizen not do

to store value to effectuate a transaction i can be in the smallest hamlet in rural india and use my visa card i've never have a problem paying somebody unless i didn't have the money we have mostly digital transfers of dollars every day what is the problem we are trying to solve except for the problem that the narcotics dealers had. i think the proposal been made for private currencies which strikes me as an unlikely outcome. is to give optional ways of

settlement for anybody. >> i have a means of settlement called the dollar. what is the great dollar. many choices. what problem do i have that they are trying to solve unless i'm a tax invader or narco terrorists. >> i'm not pushing the solution. >> i'm trying to illustrate that it's a solution only to the problem of tax invaders, and offers an opportunity for profit. speculating on a currency whose sole value is to help those. >> you might argue that people should deserve just as i think dr. michelle did. in my written testimony. there is a quote from friedrich hi rick on this.

the denomination of the transactions. >> we should allow people to own guns. in many circumstances but if the sole advantage of a particular good is that it has a special tape on it to prevent fingerprints from adhering and you would hear the honest citizen who wants to hunt. i would say the sole benefit of that particular tape on that particular got is to facilitate criminals. what other and then in facilitating facilitating criminals and allowing people to place bets on the value of a criminal tool. what does this to what problem does it sell. can you identify one because i can't. i don't know the extent to which it is used.

the gentleman's time is expired. the bell signaled that votes have been called on the house house floor. we will recess for votes in a moment. we will go to mister hill and a moment. and for members who have not have an opportunity we will reconvene for the remainder of the hearing for your questions after the votes. at this time we will ask mister hill for his five minutes of questioning. >> thank you, chairman. very interesting panel. as periods as at the u.s. chamber this morning talking about finn tack and the advantages of exploring how

block chain can change business economics and accounting and logistics very interesting topic. today were talking about something that is the headline. it is constantly chatter about crypto currency and when i listen to this testimony i just head flashbacks to the 1830s. wildcat banking. when we have no central bank thinks to president jackson's insistence. every town. issued script or currency. it is a collectors guide. it's very thick. help me mr. pollock understand that why is this any different. i can't imagine that anyone privately issued crypto currency could be any more

accepted than another. in the big picture sense. why is it not like wild cat making of the 1830s. and try to suggest that in my testimony. maybe my book is not as fast as yours. at 3-dollar bill issued by the fire company. in this time you're talking about. most currencies did have a claim on the assets of the bank. thank you for that. dr. michelle i think if i remember article one right. queenie money is an enumerated power of the congress. we get the question this morning. whereas all of this would

still be pursuant obviously to congress saying that we are doing this. tell me your views on this legally. i hate to venture a guess because they seem to be able to do quite a bit without legislation. and then dr. beside a question for you. he talked about this because a block chain truly and innovated area. you and make some forms of money or credit obsolete. if you think about this. many inefficiencies.

if you think about payments. both are painfully slow sometimes. it can could make transactions much easier. it lives down the cost. that could affect the traditional model. they take over. in my time remaining mister chairman and since this is the monetary policy committee. the recent writings on the 40th

anniversary of the humphrey hawkins act one of my personal favorite laws. and we celebrated the day quietly. i always find the goals odd i didn't get to ask my question. how is price stability there with part petrol inflation. as one of the great mysteries of the federal reserve. how a stable prices which is actually the term is consistent with their announced strategy. that's one of the great mysteries of finance. the gentleman yields back. i am informed that because this is going to be an extraordinarily long the vote series on the house floor we

may be losing members and so i reversed course and call on our colleague from ohio for the last set of questions for our hearing. now recognize for five minutes for the final hearing. thank you all for being here. i assume you are relieved a bit. thank you for your expertise in this. i think just beginning with the nature of currency part of the stability of the u.s. dollar lies not just in the resources of the united states but in the resources of the world. everyone has to settle their current account at some level in u.s. dollars. they all use crude oil. we have an effective monopoly on settlement there.

it dealt with the problem involved in gold. and prevented hoarding because the oil is not recorded. they continue to they continue to petroleum reserves. in the background of that. what creates the stability of money in crypto currency we use the word for everything. this is what the sec is trying to regulate. we had established that numerous of these commodities are there. not quite there that there is currencies. there is a big gap between how

much is this in bit coin. that is the question i would like the panel to explore. the nature of money in the crypto currency. what would make the crypto currency there. how do you move forward with that. i like the sound of that one. if were talking about a medium of exchange. we either head a currency or a substitute for money. what is the medium of exchange. in my whole point is that people should be allowed to use whatever medium of exchange and they want to use. the fact that many people think that the fed is great and fine. we should just stick to the

federal bank that we have. that's wonderful. there's no problem. if someone comes up with something better. we should allow that to take place. the government shouldn't favorite one or the other. we have the official money. in the legal tender in the united states. how do you see that with migrating that path. to be a currency as i try to success -- express in my remarks. to be a unit that is used to denominate contracts and that means that people in general believe that that currency is going to be available and accepted by other people and they have to believe that other people accept that.

everybody else has to believe that other people will accept that as well. it is a strange social creation money that comes out of belief backed up by enforcement. .. ..

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>> tonight it is my honor and privilege to announce that i will nominate judge brett kavanaugh to the united states supreme court. >> mr. president, i'm grateful to you, and i'm humbled by your confidence in me. >> brett kavanaugh for the district of columbia circuit is president trump's nominee for the supreme court. >> and i'm pleased with the nominate the president has chosen, and after talking to them yesterday morning i look forward to supporting his nomination doing whatever i can to ensure his bipartisan confirmation. if judge kavanaugh is confirmed, the freedom, women's freedoms, reforms are healthcare system, the quality of our air and water, and much more will be at risk. >> frankly i can't think of anybody who is more qualified to serve as the next associate justice of the supreme court. >> follow the process on c-span

through congress as judge kavanaugh meet with key senators. the senate confirmation hearings and the vote. watch live on c-span, watch anytime on c-span.org or listen with the free c-span radio app. >> ivanka trump and former senators chris dodd and rick santorum were part of a discussion on paid family policy. the bipartisan policy center posted this event. [inaudible conversations] >> good morning. welcome to the bipartisan policy center. i'm julie anderson, a senior vice president here at the bpc can also happen to be in working mom with aging parents so i'm excited to be kicking off our conversation on paid family leave. last year bpc's early childhood