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Central Bank Digital Currencies are coming

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Re: Central Bank Digital Currencies are coming

#101

Post by afrojack123 »

I_am_tiberius wrote: post #91

Summary of the biggest problem with digital currency managed by central banks: Central banks can use negative interests in order to force people to buy stuff. In the current system people would just withdraw cash in order to avoid negative interest rates if they are too high/low. In the future people will be forced to pay the interests or buy stuff. Governments want to use this mechanism in order to control the econo…

If you had negative interest rates with digital currencies, then everybody buys stocks. This happens even without digital currencies.

Re: Central Bank Digital Currencies are coming

#103

Post by afrojack123 »

bartvk wrote: post #14

The 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…

Raoul Pal is a joke. He isn't right and only tries to sound smart. I would take what he says with a grain of salt.

Re: Central Bank Digital Currencies are coming

#105

Post by iso8859-1 »

adament wrote: post #28
CyberDildonics wrote: post #10

Earlier quoted context omitted.

That is not the same thing. Having addresses with private keys that are the sole permission needed to make transfers is much different from having a bank account that the bank transfers electronically for you.

How? Maybe it is because I live in Denmark where I would claim we are close to a de facto digital currency: a large group(most people under 40) use credit cards or a phone based payment solution for all purchases, use a phone based solution for settling smaller ( While I understand the technical differences, I cannot see why from a policy perspective the government or the central bank would be interested in a cryptoc…

Why this dichotomy between "non-physical cash" and "decentral currency"? These things are linked, but strictly speaking you don't have to choose between them.

Abolishing physical cash does not imply migrating to a decentralised currency. But migrating to a decentralised currency is probably only possible by abolishing physical cash; I don't see gold coins coming back.

So, how is it different to have your money controlled by a private key, and nobody having the power to seize those money? Ask every single person that has had their account frozen. Whether you think it happens for just reasons or not, surely you agree that it isn't the same as having an ecosystem of digital centrally issued money? Not just issued, but also seized, through courts and police.

Re: Central Bank Digital Currencies are coming

#106

Post by afrojack123 »

dalbasal wrote: post #88

So.... I'm lost. What is a Central Bank Digital Currency? The article he links is pretty corporate-speak. Can anyone translate? What's in the seeming boilerplate now that wasn't there before. Why are they excited about it and how does this mean they can do more stimulus?

A central bank digital currency is like the system China has in place now. International payments are a different and challenging issue for central banks because blackmailing, drug dealing, gun running, and hostage situations that occur between nations can not have their money cancelled by the opposing nation.

Re: Central Bank Digital Currencies are coming

#107

Post by iso8859-1 »

arminiusreturns wrote: post #92

They want to track everything you do in a totalitarian surveillance system which is already powered on. This was why I rejected bitcoin.... lack of anonymity.

There are many ways to tumble Bitcoin (e.g. Joinmarket), it is not very hard to stay anonymous. As long as you don't need to cash out, that is ;)

Re: Central Bank Digital Currencies are coming

#108

Post by raziel2701 »

What is the difference between a digital currency and the digital money I see in my bank account online? It feels to me like I already transfer money digitally when shopping with a credit card.

Later on that twitter thread he shares a poll by the IMF [0] where they ask you how will you be sending money to a family member in 5 years. The possible answers are cash in envelope, money transfer service, digital currency or other. Are venmo and similar services not already using a digital dollar?

[0]https://twitter.com/RaoulGMI/status/1317836130788757504/phot...

Re: Central Bank Digital Currencies are coming

#109

Post by sippingjippers »

raziel2701 wrote: post #108

What is the difference between a digital currency and the digital money I see in my bank account online? It feels to me like I already transfer money digitally when shopping with a credit card. Later on that twitter thread he shares a poll by the IMF [0] where they ask you how will you be sending money to a family member in 5 years. The possible answers are cash in envelope, money transfer service, digital currency o…

At least in the case of the Digital Euro, one of the explicitly documented goals for the scheme is to alleviate dependence on US payment processors within Europe

(that's buried somewhere in https://www.ecb.europa.eu/pub/pdf/other/Report_on_a_digital_... )

Re: Central Bank Digital Currencies are coming

#110

Post by ramshorns »

I_am_tiberius wrote: post #91

Summary of the biggest problem with digital currency managed by central banks: Central banks can use negative interests in order to force people to buy stuff. In the current system people would just withdraw cash in order to avoid negative interest rates if they are too high/low. In the future people will be forced to pay the interests or buy stuff. Governments want to use this mechanism in order to control the econo…

Point taken, but it might be a bit better than literally being forced to use Facebook, if the Libra currency becomes ubiquitous. Governments controlling the economy doesn't sound too bad if the alternative is one or two huge companies controlling the economy.
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