Crypto is losing its power

The launch of the first Bitcoin-focused exchange-traded fund last week proves that crypto bulls have to meet John Law. The Scottish gambler, economist and financier is probably why so few top French banks have Banque in their name. Instead there is Crédit Agricole, Société Générale and Crédit Mutuel. Laws Banque Générale, later renamed Banque Royale, issued banknotes out of nowhere, then exploded royally in 1720, devastating the French economy. The reputation of French banks has never fully recovered.

Law’s connections gave him the exclusive rights to trade between France and his Louisiana territory. Mississippi Co. was financed by the sale of new shares in Banque Générale, which could be paid for with Banque Générale banknotes. From January to December 1719 the shares rose from 500 livres to 10,000 livres. Soldiers had to be sent in to maintain order in the frenzied financial district.

Comments are closed.