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> The idea of these new CBDCs is to setup a similar system but where the digital currency could be distributed to individual citizens. I don't think this is th
by lottin 6y ago
> The idea of these new CBDCs is to setup a similar system but where the digital currency could be distributed to individual citizens.
I don't think this is the point of CBDC at all. Individual citizens gain nothing with the ability to sell financial assets to the CB, and neither does the CB.
- danialtz 6y agoThe idea here is about security of money: the money stored in the CB ledger does not lose i ts contractual value in difficult times, as it is garanteed by the central bank. Compare that to your money in your bank, which is backed at 10% with fiat reserves. If crisis happens and people want to pull their cash out the bank goes bankrupt. Central banks do not go bankrupt, hence your money is always safe.
- lottin 6y agoSure, but bank deposits are very secure anyway. They are protected by insurance and by central banks which provide liquidity to commercial banks that are experiencing financial distress.