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People who thing this is a good idea do not understand how our money works. A central bank isn't a bank at all it does not have the function of a bank. It just
by noxer 6y ago
People who thing this is a good idea do not understand how our money works. A central bank isn't a bank at all it does not have the function of a bank. It just has bank in its name.
If you let banks compete against a central banks you may as well just close them all.
- jl2718 6y agoNo, because you’d get no interest on your deposits. Private banks would simply have to offer something of value. obviously this conflicts with ZIRP, but that’s of dubious wisdom from the start.
- noxer 6y agoYou already get no interest on deposits. There is zero reason to deposit your money at a bank if a central bank provides the same service but by definition zero risk. >Private banks would simply have to offer something of value. They do but they can not compete with a central bank.