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China finds it politically intolerable that the US has an at-will ability to cripple major firms like ZTE and Huawei. It’s now a matter of national security for China to strengthen every major technological capability. The US responded to the rise of the USSR and Japan by focusing on innovation; it’s early days, but so far the US is responding to the technological rise of China mostly by kneecapping its leading firms. So instead of realizing its own Sputnik moment, the US is triggering one in China.

From 2019 Letter | Dan Wang:

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As a tangent, I’ve found it curious that Congress has become so keen to publicly beat up on Facebook and Google while the US considers itself in technological competition with China. In my view, antitrust arguments apply better to companies like Intel and Boeing, which are the tech giants that wield much greater market power. Maybe the contrarian move however is to recognize the cleverness of Congress. The legislators might in fact understand that semiconductors are a core strategic asset, in a way that social networks and search engines are not.

From 2019 Letter | Dan Wang:

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Although Alibaba and Tencent may be technically impressive on software development, their business success is mostly a function of the size of the market and the social, regulatory environment. The ubiquity of mobile payments is due not just to technological innovation (substantial though that might be), but also the financial regulatory regime and the leapfrog over credit cards.

From 2019 Letter | Dan Wang:

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It’s not obvious to me that apps like WeChat, Facebook, or Snap are doing the most important work pushing forward our technologically-accelerating civilization.

From 2019 Letter | Dan Wang:

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The payments allegedly climbed as high as 40% of the value of the company’s project and were often facilitated through subcontractors. The subcontractors, such as private security firms that were known to pay off the Taliban, would sometimes send money through Afghanistan’s traditional money transfer network, which can be hard to trace.

From US Contractors Accused of Funding Taliban Attacks Against American Troops:

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Many of Sweden’s bank branches stopped handling cash years ago. Now, they will have to begin doing so all over again, and many are not happy about it. Nor are Sweden’s competition and financial watchdogs, which both oppose the proposal, arguing access to cash should be the sole responsibility of the state and not private banks.

“To secure access to cash is a collective good that the state should reasonably be responsible for,” the Swedish Financial Supervisory Authority said. It’s an opinion shared by ATM provider Bankomat, which argued cash should be the state’s responsibility since the handing of notes and coins is such an important – and expensive – part of a country’s infrastructure.

From Are we sleepwalking into a cashless society? – Central Banking:

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Many of Sweden’s bank branches stopped handling cash years ago. Now, they will have to begin doing so all over again, and many are not happy about it. Nor are Sweden’s competition and financial watchdogs, which both oppose the proposal, arguing access to cash should be the sole responsibility of the state and not private banks.

From Are we sleepwalking into a cashless society? – Central Banking:

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UK banknotes are distributed across the country through the Note Circulation Scheme. The four members of the NCS buy banknotes from the central bank at face value and distribute them to banks, building societies, ATM operators and large retailers. But while the BoE sets standards to ensure notes which circulate are good quality, the central bank not responsible for how banknotes are distributed to the public.

From Are we sleepwalking into a cashless society? – Central Banking:

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Pronomos is the only one with seed money from boldface names including Thiel, venture capitalist Marc Andreessen, and Bitcoin evangelists Roger Ver and Balaji Srinivasan. In describing his new firm, Friedman isn’t shy to use seasteading as a reference point. “I’ve been putting these ideas out there for 20 years, and they’ve grown and compounded,” he says, sipping well water at his mountaintop compound south of San Jose. “What we get excited about is the ability to do this repeatedly.”
Why the colonial-sounding framework, right down to the old British laws? Dressed in a well-loved Slytherin sweatshirt, Friedman says it’s the best fuel for a fledgling economy and property values, and to assure global investors that their money will be safe in Pronomos projects. The justice system is more important than the tax breaks,

From Silicon Valley Seasteaders Go Looking for Low-Tax Sites on Land – Bloomberg:

Now, a city with autonomy that operates under English Common Law (there is no “British law” as commentators pointed out) sounds a bit like Hong Kong, which was undoubtedly a successful model for economic development. This is an interesting reflection on the idea xxx

Charter cities are a stillborn baby with a million would-be midwives. If it happens at all, it will evolve out of some Belt and Road contract clause where the borrower didn’t pay back the loan.

From A new charter city effort, Pronomos Capital, with venture capital – Marginal REVOLUTION:

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Lawmakers in New York are trying to correct this with a new bill that would create a “public Venmo” system designed to include more people in the formal economy and stimulate local economic growth. In November, New York State Assemblymember Ron Kim, Senator Julia Salazar, and Cornell law professor Robert Hockett announced their Inclusive Value Ledger (IVL) proposal. If passed, it would create the country’s first publicly owned electronic banking platform, as well as a digital currency that can be exchanged for goods and services within the state.

From New York Is Proposing the Creation of a ‘Public Venmo’ – VICE:

 

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