Central Bank Digital Currencies

Discussion in 'Digital Currencies' started by mmm....shiney!, Apr 17, 2020.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,492
    Likes Received:
    3,559
    Trophy Points:
    113
    Location:
    昆士蘭
    @Markco2, you asked me in an earlier thread whether we may witness a reset of the system. The following scenario could be very possible, not just a reset but a complete revision. Central banks replacing private banks and third-party payment providers such as Visa etc.

    snip

    https://www.coindesk.com/how-central-banks-could-use-digital-cash-to-deliver-universal-basic-income
     
  2. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    9,621
    Likes Received:
    2,392
    Trophy Points:
    113
    Location:
    Pulau Alor ;)
    how to have FREE market economy when there is a central bank owned by a small bunch of people ???
    all delusional people do believe what they want to
    now under lock-down by covid19
    there is no such free market when we are not allowed to have an opinion or believe that this gold or silver thing are junk where only in dreams we have a voice and colours
     
    66rounds likes this.
  3. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    2,006
    Likes Received:
    2,111
    Trophy Points:
    113
    Location:
    Melbourne
    There hasn't been a true free market for the past 30-40 years.
     
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,492
    Likes Received:
    3,559
    Trophy Points:
    113
    Location:
    昆士蘭
    I think Coppola's vision for a CBDC is probably a worse-case outcome ie the State issues currency directly to the citizens and processes the use of the currency in payments without the need for commercial banks or third-party payment systems. In other words the exchange of value is requires every citizen to hold an account at a central bank. It's a scenario very much in line with a dystopian science-fiction story. So rather than the financial and monetary system being reset ie same as we've got they just start again by implementing debt jubilees, revaluing current fiat currencies, wage rates, tax rates etc, we get a complete transformation.

    And whereas we've been hoping that the transformation will come built upon sound money principles and private currencies, there is the possibility that it could be the polar opposite.

    At the moment I don't think such a stark future is being planned by CBs, well I hope not anyway. At the moment they're likely to be more interested in how to efficiently issue payments and how to combat the growing threat that private currencies pose to their view of what constitutes sound money. Recent announcements by the BOE and older studies by the BIS for example recognise the role that third-party payment providers and commercial banks have in the financial system and the dangers to financial stability that the issuance of a CBDC can pose if it goes too far. Even Draghi raised concerns about CBs going into direct competition with the retail and commercial sector.

    snip

    https://www.bis.org/cpmi/publ/d174.pdf

    It would become scary when someone like Coppola were to sit on the board of a Central Bank. I don't think we're there yet.
     
  5. inmizu

    inmizu Active Member

    Joined:
    Jul 4, 2018
    Messages:
    156
    Likes Received:
    105
    Trophy Points:
    43
    'In other words the exchange of value is requires every citizen to hold an account at a central bank'

    Sigh. There exist 'permissioned' cryptos, with a KYC to set up the wallet.

    And 'private currency'? Could you define this for me, please?
     
  6. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,492
    Likes Received:
    3,559
    Trophy Points:
    113
    Location:
    昆士蘭
    Non-government.
     

Share This Page