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Gift cards (covered previously in this space) are a form of privately issued money. The U.S. has prior experience with widespread circulation of privately issued money during the free banking era, where “wildcat banks” issued bank notes backed by deposits of precious metals and the general creditworthiness of the bank.
Gift card marketplaces largely (and surprisingly) match professional buyers and sellers of gift cards, rather than casual users. This creates an interesting ecosystem in the shadow of large retailers.
We are not affiliated with Patrick McKenzie. This unofficial audio edition is available to listen to and share for free. Read the original on Bits about Money.
Duration
~19 minutes (18K characters)
Release date
Dec 17, 2021