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Central Bank Digital Currencies are coming

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Re: Central Bank Digital Currencies are coming

#121

Post by beaunative »

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…

digital currency without physical existence would lower the cost of transanction, and your wallet doesn't have to be hosted with a bank, it is local on your devices.

Re: Central Bank Digital Currencies are coming

#122

Post by octoberfranklin »

qppo wrote: post #48
neural_thing wrote: post #26

Earlier quoted context omitted.

California already has laws for creating landed gentry (prop 13 inheritance)

And now Google is going to be leasing land to its employees. Which I find terrifying

Eh? Details?

Re: Central Bank Digital Currencies are coming

#123

Post by octoberfranklin »

claydavisss wrote: post #20
joeyrideout wrote: post #17

Earlier quoted context omitted.

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.

... and incentivize people to smuggle their gold out of the country.

International trade is far too large these days to stop gold-smuggling.

Look at the great job we're doing with drug smuggling. Most cocaine enters the US hidden in shipping containers.

Re: Central Bank Digital Currencies are coming

#124

Post by anm89 »

povik wrote: post #18

Are 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 por…

You are exactly correct. These "digital currencies" are simply new types of bank accounts where retail consumers can hold money at central banks. They are no more digital than any other bank account.

They have absolutely nothing to do with crypto either.

Re: Central Bank Digital Currencies are coming

#125

Post by anm89 »

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…

The fact that the account would be a liability on the balance sheet of the central bank, not the retail bank who you hold the account with.

As you correctly point out, these accounts are no more or less digital than your current bank account.

Re: Central Bank Digital Currencies are coming

#127

Post by anm89 »

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?

These "digital currencies" are simply new types of bank accounts where retail consumers can hold money at central banks. They are no more digital than any other bank account.

They have absolutely nothing to do with crypto either.

Re: Central Bank Digital Currencies are coming

#128

Post by p1necone »

est31 wrote: post #38
cuspy wrote: post #23

one frightening prediction I've heard is that we will have parallel economies. One for UBI consumer serfs who receive a monthly stipend that expires at the end of each month, another for people who work and receive payment perhaps in other independent currencies, and another, which already exists, for the very wealthy who hold wealth primarily in tangible assets like real estate and fine art. This will either fail sp…

The "UBI consumer serfs" already exist in Germany, because the government only pays you benefits if you don't have any property. The moment you start saving up your money, they stop payments and demand you to live from your savings instead.

That's not a UBI then is it? Isn't the point of a UBI to give it to everyone universally regardless of their specific situation?

Re: Central Bank Digital Currencies are coming

#129

Post by hnthrower »

anm89 wrote: post #124
povik wrote: post #18

Are 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 por…

You are exactly correct. These "digital currencies" are simply new types of bank accounts where retail consumers can hold money at central banks. They are no more digital than any other bank account. They have absolutely nothing to do with crypto either.

Do you have a source for that? If I'm not mistaken it was talked around here in the past about them taking the wallets and keys portion from cryptocurrencies.

Re: Central Bank Digital Currencies are coming

#130

Post by mbrock »

zmk_ wrote: post #37
PeterisP wrote: post #21

Earlier quoted context omitted.

Well, the current system as you describe is a two-level system with your bank in between; a CBDC allows you to "have an account" directly with the central bank directly and make/receive payments without needing a retail bank intermediary. It also enables central banks to achieve policy goals that they could not earlier - for example, in the last big crisis all the quantitative easing did not result in as much actual…

Sweden is probably the most advanced in considering an "e" currency and so far the proposals have been of keeping the two-tier system, i.e., you still have an account with a bank.

The riksbank seems to be advocating an "e-krona" where each citizen would use a state-issued digital identity to directly use central bank money as a means of payment similar to physical cash, no?
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