21 sats \ 0 replies \ @Undisciplined 12 Nov \ parent \ on: Competition and trust in the private provision of money | Article Review BooksAndArticles
It makes sense to me. Reputation offers a persistent opportunity for rent seeking. Eventually, someone will attempt to capitalize on that and they'll start outcompeting their peers, which triggers a race to the bottom.
That's why I wondered about the case of private issuers of actual precious metal coinage. Reputation plays a much smaller role there, although they still need people to believe their purity claims.