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Bank of England to explore a potential Central Bank Digital Currency

bankofengland.co.uk

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Re: Bank of England to explore a potential Central Bank Digital Currency

#131

Post by ObserverNeutral »

casi18 wrote: post #65
disruptalot wrote: post #35

Earlier quoted context omitted.

I've been hearing this for 10 years straight. Thus far the only successful examples of Blockchain technology have been based on digital currencies and Bitcoin has done nothing but continue it's success. On the other hand, there is not one example of "Blockchain technology" put to work on anything that needed it.

I now barely use my bank account, i get paid in dai, i pay others in dai. occasionally i have to move dai into fiat for bills. hopefully these central bank digital currencies help bridge that last step. i love it because i can write programs to move my money around. I can stream payments with https://sablier.finance i can lend and borrow with https://aave.com I get paid universal basic income each hour from https://w…

This stuff doesn't scale.

The 99% is represented by the regular normie citizen who likes intermediaries because they don't want the responsibility.

The legacy financial system with intermediaries didn't emerge from some evil dictators pushing it onto the world.

It spurred from the market desires, and the market is made up of the regular normie citizens AKA the 99%

Despite what the headlines say, the 99% as a whole controls 99% of the total wealth and they dictate the rules

Re: Bank of England to explore a potential Central Bank Digital Currency

#133

Post by lainga »

rvense wrote: post #120
dools wrote: post #62

Earlier quoted context omitted.

The important distinction is that currently all cashless payment systems are privately run for profit which is effectively a regressive transaction tax.

It's also just a control thing. When private enterprises control (and create) money, they will do so based on their own interests. These might not align with the best interests of society at large.

Well, in Keynesian analysis, the private enterprises are supposed to create money. The gov't manages how much they create though reserve requirements.

Re: Bank of England to explore a potential Central Bank Digital Currency

#134

Post by Majestic121 »

tim333 wrote: post #117
nosianu wrote: post #36

Earlier quoted context omitted.

That does not make sense to me, since computers "native" numbers are not binary and the layer on top would not care one bit if it converts the binary representation to whatever base. Not to mention that the wide-spread use of the decimal system among humans happened long before computers where even dreamed of. So those things point to the decimal system adoption having been made for humans and not for computers. Coun…

It's popular for time. See you in an an hour rather than in 0.041666 days.

That's a bad example, because you use exactly one hour.

If you divide the day in 10, let's call it decile, you would say see you in a decile instead of 2.43 hours.

As a side effect, 2.43h is actually 2h and less than 30 minutes and not 2h and 43 minutes (unintuitive), while 0.41 decile would probably be 41 centile, so conversion would be easier.

Re: Bank of England to explore a potential Central Bank Digital Currency

#135

Post by throw1234651234 »

synnejye wrote: post #105
ObserverNeutral wrote: post #92

Earlier quoted context omitted.

Japan tried this in the 90s with expiring vouchers, results were subpar. The bailwick of Jersey sent citizens a prepaid card with £100 expiring in 6 monhts which was also disabled for ATM withdrawls during 2020. Again moderate results. Money is a unit of account, if you mess with it people adjust quickly, there is no free lunch. It's not the same as giving Wellbutrin+Ritalin to somebody who is depressed.

Then they must have be doing something wrong? Obviously people would not be foregoing free money if it was easy to get. You are arguing that people would not spend "free" 100 usd on their rent if the money/voucher was directed towards rent.

I think the key to what ObserverNeutral is saying has a strong point - "People will try to sell their fake, expiring "crypto-dollars" for real money, instead of following the rules.

Even if they can't see the "crypto-dollar" for less "real dollars", they will just go through some medium of exchange. I.e. buy toilet paper for crypto dollars, and sell it at a discount.

Great point. I didn't consider it offhand.

Re: Bank of England to explore a potential Central Bank Digital Currency

#136

Post by globular-toast »

KaiserPro wrote: post #30

I've not really understood the need for a "digital" pound, the pound is pretty digital already. I can already have an entirely digital bank account from at least three "challenger" banks. There are also now at least two business accounts that also entirely virtual. "Faster Payments" (customer bank transfers) are delivered in seconds. I can see a need for speeding up BACS, and reducing the price of CHAPS, but apart fr…

Yes, it is digital, but it's minted by private banks, not the government. It's been a huge problem. Private banks cannot be trusted with our money supply as they have repeatedly shown.

Re: Bank of England to explore a potential Central Bank Digital Currency

#137

Post by Mauricebranagh »

codeulike wrote: post #8

They should make it work on the 'old money' system of penny, shilling and pound, with twelve pence to a shilling and twenty shillings to the pound, then use the abbreviation 'd' for pence, and then throw in farthings (quarter penny) and half-crowns (two shillings and six pence) because if there's one thing I've learnt about finance, its that the more confusing things are, the easier it is to make a profit.

I suspect some of there more out there "brexiteers" would like that - I have seen calls for returning to imperial units FFS!

Re: Bank of England to explore a potential Central Bank Digital Currency

#138

Post by Mauricebranagh »

tim333 wrote: post #119
leg100 wrote: post #68

Earlier quoted context omitted.

Don't forget the guinea: equal to a pound and a shilling, or 21 shillings, for the purposes of bidding for a racehorse.

Also the British Sovereign with a nominal value of a pound an an actual value of about £320 judging by ebay https://www.ebay.co.uk/sch/i.html?_from=R40&_trksid=p2334524...

Because a Sov is actual currency you don't pay VAT and CGT doesn't apply.

Re: Bank of England to explore a potential Central Bank Digital Currency

#139

Post by [deleted] »

bitcoinmonger wrote: post #100
KaiserPro wrote: post #63

Earlier quoted context omitted.

You would be politely asked why you were in a restricted area, and asked to leave. Currency is based on trust. Trust that the ledger is correct, auditable and matches up. but to address your question, its possible to unilaterally reverse a payment, but as you'll then have to tell the clearing house to reverse the transaction, you'll need to get authorization from thirdparty, which is tricky. Moving money around insid…

How do you know that I won't steal funds from your account? Do you simply trust that I won't, and that your bank trusts me not to do so? I suppose the question is, what's stopping me? Trust or security?

[deleted]
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