ICYMI, earlier this year, the cLabs team wrote this paper that outlines not just how CBDCs can increase the efficiency of the global financial system, but also how it creates a new transmission channel for monetary policy.
Central Bank Digital Currencies are coming
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Re: Central Bank Digital Currencies are coming
#12This is going to end up as a giant hyperledger failure. Once the committee forms on how to do "this" it will be mired in indecision and eventually collapse on itself.
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Re: Central Bank Digital Currencies are coming
#13European banks recently started toying with the idea of passing down negative interest rates to customer bank deposits, so that banks are less squeezed by reserves yielding negative returns (breaking the typical bank business model). Just think, if CBDCs pass down the negative interest rates to everyone's cash, inside or outside of banks. That's not a currency I would be happy to hold.
And that's the very goal of the monetary policy. Pushing you to invest into something riskier (including selling the currency).
Re: Central Bank Digital Currencies are coming
#14The mandate of the European Central Bank is to maintain price stability.
Raoul Pal says "They can give, for example, restaurant owners a direct payments for stimulus whilst at the same time, charging negative interest rates on larger savers".
But I don't see how this fits in the mandate of the ECB. Raoul Pal says "(if they get the powers by the Governments, which will come)". But that's a prediction, nothing more, and he doesn't further support it.
Re: Central Bank Digital Currencies are coming
#15I agree with this, Central Banks will try to influence the public through military backed/forced digital currencies but considering that I’m not stupid, I’ll just move to another country that accepts Bitcoin and try to accumulate it in legal ways.
Their fiat system is about to crash and the exactly same people that caused the crash is saying that they will solve the problems they created through centralised digital currencies? Oh please, fool me once, shame on you. Fool me twice, you can't get fooled again.
Re: Central Bank Digital Currencies are coming
#16This is the best explanation I have seen :
Re: Central Bank Digital Currencies are coming
#17Buy gold.
If CBDC issuance coincides with banning physical cash, what makes you think that they won't enforce capital controls on alternative currencies?
Re: Central Bank Digital Currencies are coming
#18Are these proposed central bank “digital currencies” anything more than a centralised or federalised database of who-owns-how-many?
And if so, how does that differ from what we have now? That is, in a European country, I have an account with my bank, and my bank has an account with the central bank (or the two interact in some other way).
My understanding of the current system is limited, I merely know some large portion of the issued currency today is without physical representation.
Re: Central Bank Digital Currencies are coming
#19The mandate of the European Central Bank is to maintain price stability. Raoul Pal says "They can give, for example, restaurant owners a direct payments for stimulus whilst at the same time, charging negative interest rates on larger savers". But I don't see how this fits in the mandate of the ECB. Raoul Pal says "(if they get the powers by the Governments, which will come)". But that's a prediction, nothing more, an…
> The experience with pandemic emergency payments has brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC). Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments
https://www.clevelandfed.org/en/newsroom-and-events/speeches...
Re: Central Bank Digital Currencies are coming
#20Buy gold.
If CBDC issuance coincides with banning physical cash, what makes you think that they won't enforce capital controls on alternative currencies?
A "ban" on gold would only achieve multiplying the spot price by ten overnight. It would be the final signal that fiat currencies should be avoided at all costs.