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Ask HN: Why do we need central bank digital currency (CBDC)?

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Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#101

Post by zeroclip »

jqpabc123 wrote: post #93
0x64 wrote: post #86

Earlier quoted context omitted.

Because stable currencies do not exist in the world of cryptos? Dai [1], Rai [2], and USDC [3] are some examples that are all stable, and all dramatically different from each other. Fees are currently as low as $0.03 on Ethereum layer-2 solutions (!= side-chain) [4]. The fees will further fall as the technology improves, and once L1 gets (data-/dank-)sharding and other L2-scaling oriented upgrades. [1] https://makerd…

Fees are currently as low as $0.03 on Ethereum layer-2 solutions Fees in crypto fantasy land are irrelevant to most people. How much does it cost to pay your rent or buy food in the real world?

Fiat transactions often carry fees. If you buy a product online or receive revenue from e-commerce the fees are around 2-5% + 50 cents.

Crypto is probably not going to beat domestic interbank dollar transfers for small amounts, these transactions can be regulated down to zero fees like we see in the EU and UK.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#102

Post by RonaldOlzheim »

Explain to me like I am 5 - What problem does a digital currency solve that is not solved by electronic (digital) transfer mechanisms of existing fiat money?

Examples: 1: Stable cash flow (why they want a stable coin --> to monotitor for policy) 2: future projections of the economy (finance needs backing --> data is key) 3: credit scores of people 4: long term investments 5: organisations need finance in good and bad times, otherwise it is survival of the fittest but that is not what society is about.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#103

Post by jqpabc123 »

zeroclip wrote: post #101
jqpabc123 wrote: post #93

Earlier quoted context omitted.

Fees are currently as low as $0.03 on Ethereum layer-2 solutions Fees in crypto fantasy land are irrelevant to most people. How much does it cost to pay your rent or buy food in the real world?

Fiat transactions often carry fees. If you buy a product online or receive revenue from e-commerce the fees are around 2-5% + 50 cents. Crypto is probably not going to beat domestic interbank dollar transfers for small amounts, these transactions can be regulated down to zero fees like we see in the EU and UK.

Crypto is probably not going to beat domestic interbank dollar transfers for small amounts

Thank you. It's probably not going to beat domestic interbank dollar transfers for ease of use either. With a CBDC, most consumers will only notice new capabilities and faster money transfers --- at zero cost.

Back to the original point: A CBDC will eliminate any argument for crypto --- except for paranoia.

And about paranoia --- imagine the outcry if government decided to store every transaction you ever did in an immutable public database?

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#104

Post by jqpabc123 »

adolph wrote: post #96
jqpabc123 wrote: post #66

Earlier quoted context omitted.

Why would CDBC cost less if it is an improvement in value over the previous systems of credit cards, checks, and cash? Because it will be *truly* computer automated and operate 24/7/365 without middlemen processors charging outlandish fees that are hidden from the consumer.

CDBC just becomes the “middlemen processors” only in singular. Aside from a hypothetical utopia, there is nothing that says it won’t do the same thing as the current processors. It won’t be free—even if no human is employed to maintain it. Current, cooling, hardware, network are all not without cost. From your description the best case for CDBC is to play underfunded and undermarketed generic to Visa/MC’s brand name…

Current, cooling, hardware, network are all not without cost.

Yes but let's fact facts --- simple accounting on a computer is very cheap. Cheap enough that banks and the Fed can write it off as overhead --- unlike crypto mining which is intentionally designed to waste energy and money.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#105

Post by zeroclip »

jqpabc123 wrote: post #103
zeroclip wrote: post #101

Earlier quoted context omitted.

Fiat transactions often carry fees. If you buy a product online or receive revenue from e-commerce the fees are around 2-5% + 50 cents. Crypto is probably not going to beat domestic interbank dollar transfers for small amounts, these transactions can be regulated down to zero fees like we see in the EU and UK.

Crypto is probably not going to beat domestic interbank dollar transfers for small amounts Thank you. It's probably not going to beat domestic interbank dollar transfers for ease of use either. With a CBDC, most consumers will only notice new capabilities and faster money transfers --- at zero cost. Back to the original point: A CBDC will eliminate any argument for crypto --- except for paranoia. And about paranoia -…

There are reasons to use crypto aside from a domestic interbank dollar transfer: trading a digital asset, registering something on a globally shared ledger, international transfers or transfers to non-bank accounts, anonymous cash-like digital transactions, smart contract functionality, to name a few.

Forcing citizens to use a CBDC is straight out of 1984 playbook.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#106

Post by zeroclip »

jqpabc123 wrote: post #95
glennvtx wrote: post #87

Earlier quoted context omitted.

Governments are proven oppressors, Every single mass abuse of human rights, war, genocide has been carried out by government. Taking the power of the purse from government is the next big human rights issue of our age, rendering taxation by inflation impossible, and empowering individuals to hold government accountable.

Thank you for saving us from the evil of government. In the meantime, can I pay rent with crypto?

If your landlord decides to accept crypto, sure you could.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#107

Post by jqpabc123 »

zeroclip wrote: post #106
jqpabc123 wrote: post #95

Earlier quoted context omitted.

Thank you for saving us from the evil of government. In the meantime, can I pay rent with crypto?

If your landlord decides to accept crypto, sure you could.

So in other words --- not likely --- not without charging you an additional fee.

Your landlord doesn't exist in crypto land either --- and he will quickly grasp the fact that doing business in crypto has real world costs.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#108

Post by jqpabc123 »

zeroclip wrote: post #105
jqpabc123 wrote: post #103

Earlier quoted context omitted.

Crypto is probably not going to beat domestic interbank dollar transfers for small amounts Thank you. It's probably not going to beat domestic interbank dollar transfers for ease of use either. With a CBDC, most consumers will only notice new capabilities and faster money transfers --- at zero cost. Back to the original point: A CBDC will eliminate any argument for crypto --- except for paranoia. And about paranoia -…

There are reasons to use crypto aside from a domestic interbank dollar transfer: trading a digital asset, registering something on a globally shared ledger, international transfers or transfers to non-bank accounts, anonymous cash-like digital transactions, smart contract functionality, to name a few. Forcing citizens to use a CBDC is straight out of 1984 playbook.

Forcing citizens to use a CBDC is straight out of 1984 playbook.

FUD anyone?

Citizens won't be using a CBDC --- at least not directly. Everything *citizens* do will still be denominated in good ole USD just like always.

The CBDC will be used behind the scenes by banks and the Fed to speed up and modernize the banking system --- to replace the antiquated ACH system that was originally designed in the paper check era.

Basically, a CBDC will allow digital wallet like features to be seamlessly added to every existing US bank account.

Re: Ask HN: Why do we need central bank digital currency (CBDC)?

#110

Post by phendrenad2 »

blihp wrote: post #99
phendrenad2 wrote: post #97

Earlier quoted context omitted.

> This can already be done to a degree via the banking system, but a CBDC would provide for much more granular control. That's vague. Prove it.

See Russia and SWIFT for the most extreme example to date.

What does that have to do with CBDC?
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