Fed Chair: CBDC Could Preserve Dollar’s Standing

[x3sm]

"While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency, or CBDC, we have been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation. Our key focus is on whether and how a CBDC could improve on an already safe and efficient U.S. domestic payments system."

https://www.federalreserve.gov/centr...l-currency.htm

Thoughts?

[F32Fleet]

Originally Posted by x3sm

"While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency, or CBDC, we have been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation. Our key focus is on whether and how a CBDC could improve on an already safe and efficient U.S. domestic payments system."

https://www.federalreserve.gov/central-bank-digital-currency.htm

Thoughts?

Absolute govt control of the money supply. What's not to like?

[ryan stewart]

Eh, its more simple than that really, its just moving into the modern world.

Technically the digital trade you make online isnt currency. I mean accounts and whatnot are insured but there isnt the same scenario where $1 online is the same as a US minted $1 note. The $1 is legally backed, etc. People HAVE to take that as currency in the US, they don't have an option.

Right now, digitally, there isn't the equivalent. We just all pretend its the same but in reality its all just a bunch of promissory notes.

[chassis]

How does a digital dollar change anything meaningfully for the United States?

Are there offensive or defensive reasons for this? Is it as helpful as having cold fusion? Or is it a nothing burger?

Looking for 25 words or less responses. Didn’t read the link.

[TR930]

Originally Posted by chassis

How does a digital dollar change anything meaningfully for the United States?

Are there offensive or defensive reasons for this? Is it as helpful as having cold fusion? Or is it a nothing burger?

Looking for 25 words or less responses. Didn’t read the link.

It would mean the end of anonymity.

[F32Fleet]

Originally Posted by ryan stewart

Eh, its more simple than that really, its just moving into the modern world.

Technically the digital trade you make online isnt currency. I mean accounts and whatnot are insured but there isnt the same scenario where $1 online is the same as a US minted $1 note. The $1 is legally backed, etc. People HAVE to take that as currency in the US, they don't have an option.

Right now, digitally, there isn't the equivalent. We just all pretend its the same but in reality its all just a bunch of promissory notes.

Nobone has to accept US currency.

[F32Fleet]

Originally Posted by chassis

How does a digital dollar change anything meaningfully for the United States?

Are there offensive or defensive reasons for this? Is it as helpful as having cold fusion? Or is it a nothing burger?

Looking for 25 words or less responses. Didn’t read the link.

The USG could ban cash. Now with cash banned imagine negative interest rates or all of your transactions on a central ledger.

[ryan stewart]

Originally Posted by F32Fleet

Nobone has to accept US currency.

Not good ands services but settling legal debt (domestically) at the end of the day it's a fiat backed currency.

Right now there isn't a digital equivalent. I'm sure at some point we will need a final word in settling up transactions digitally as cash is going by the wayside.

[chassis]

Originally Posted by F32Fleet

The USG could ban cash. Now with cash banned imagine negative interest rates or all of your transactions on a central ledger.

Banning cash - what is the plus or minus of that? Who gains? Who loses?

All transactions on a central ledger sounds like it raises privacy concerns. On the other hand, the government could more easily spot money laundering, correct?