3 ms·

Perhaps I’m missing something, but aren’t currencies mostly digital anyway? I don’t actually know for sure, but surely the percentage of fiat money that exists

• perfunctory 6y ago
  > but aren’t currencies mostly digital anyway? yes, but currently only licensed financial institutions (e.g. banks) can hold accounts directly at a central bank. You, as a private person, can't. CBDC will give you that capability too.
• jcfrei 6y ago
  The main difference is that physical money exists as a liability on the balance sheet of the central bank. That is special however. Because - as you say - most of the money in existence is digital. However that digital money - ie. your deposit - exists as a liability of a private bank. Meaning if that bank goes bust you are only guaranteed to get back the amount that is insured (probably something like $100k in the US).