What is the fuss over central-bank digital currencies?
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Re: What is the fuss over central-bank digital currencies?
#2They dont have a public audit trail like other popular digital currencies maybe?
Re: What is the fuss over central-bank digital currencies?
#3Digital currencies allow for full tracking of every transactions and are a privacy nightmare.
They allow applying negative interest rate on everybody and they would facilitate neverending hyperinflation (no need to print new bills at great expense).
Hence they can't coexist with cash so say goodbye to cash.
I don't like where we're going.
Re: What is the fuss over central-bank digital currencies?
#4BTC: normies know it; network effect wills it
ALGO/XLM/Etc: CBDC hop on and ride the road to riches.
ZEC: what Hal Finney was trying to make BTC.
Re: What is the fuss over central-bank digital currencies?
#5Digital currencies allow for full tracking of every transactions and are a privacy nightmare. They allow applying negative interest rate on everybody and they would facilitate neverending hyperinflation (no need to print new bills at great expense). Hence they can't coexist with cash so say goodbye to cash. I don't like where we're going.
Sure, BTC and other popular ones work this way, but monero is completely anonymous (as long as senders don’t collude), so it’s not an inherit trait of crypto.
Re: What is the fuss over central-bank digital currencies?
#6They are inherently dangerous, money as a service, with all associated risks. What's next? Car as a service? House as a service? Government as a service? Life as a service?
Re: What is the fuss over central-bank digital currencies?
#7One benefit I didn't see mentioned was that central banks, being an arm of the government, presumably won't cut off payment processing for completely-legal-but-socially-unacceptable sites like private payment services do. I know this happens to porn artists/websites all the time, and recently it's been happening to political extremist sites like Parler etc. too.
Re: What is the fuss over central-bank digital currencies?
#8The central bank (government) issues money in two forms:
1. Paper money (notes and coins)
2. Digital money (deposit account at the central bank)
#1 is not practical for much modern commerce, e.g. online shopping.
#2 is only available to banks and a few other select institutions
So, most of us don't really use government issued money much. We use money issued by retail banks (credit balances in checking accounts) and, due to deposit guarantee schemes, everyone is happy to accept that private money as if it is government money.
Central banks are still exploring model of CBDC. They could expand #2, and allow any of us to hold central bank deposit accounts. But some central bankers worry that they are not the best folks to provide consumer services, so maybe private companies should design and operate the apps which will interface with the central bank's ledger.
Re: What is the fuss over central-bank digital currencies?
#9One benefit I didn't see mentioned was that central banks, being an arm of the government, presumably won't cut off payment processing for completely-legal-but-socially-unacceptable sites like private payment services do. I know this happens to porn artists/websites all the time, and recently it's been happening to political extremist sites like Parler etc. too.
The us central bank is NOT an arm of the government any more that Federal Express is an arm of the government.
Re: What is the fuss over central-bank digital currencies?
#10BTC: normies know it; network effect wills it ALGO/XLM/Etc: CBDC hop on and ride the road to riches. ZEC: what Hal Finney was trying to make BTC.
BTC: a Ponzi scheme for the rich.
BCH: what Bitcoin always was.
ETH: decentralized computing.
XMR: anonymous Bitcoin.