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Benefit is that currently government insures bank deposit, which is subsidy to banking. For example, FDIC does deposit insurance in US. There is cap in FDIC ins
by sanxiyn 6y ago
Benefit is that currently government insures bank deposit, which is subsidy to banking. For example, FDIC does deposit insurance in US. There is cap in FDIC insurance, which complicates large deposit. We can get rid of all these complexity with CBDC.
- bawolff 6y agoFDIC is funded via premiums paid for by member banks, not the gov. That's not a subsidary. As far as the insurance cap goes, if the new plan is that the central bank doesn't need insurance because it can always print new money, i suppose that's true, but that is one hell of a subsidary and one that sounds scary from a fiscal responsibility standpoint.
- anm89 6y agoI personally don't belive this has anything to do with deposit insurance.
- imtringued 6y agoNo, but it's the consequence of equating a dollar in a database with a real dollar and the subsequent ownership of that dollar. A deposited dollar in your bank account is a low yield investment. You don't own the dollars, you own the promise that you will get your dollars back.