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Money is definitely digital already, but I think the important aspects of this are the various implications of the central banks adopting modern tech. Take Chi
by hahaxdxd123 5y ago
Money is definitely digital already, but I think the important aspects of this are the various implications of the central banks adopting modern tech.
Take China's e-yuan:
1) You directly have an account at the central bank and spend from it through an app
2) Central bankers can trivially apply stimulus instantly (no fuss about the $1200 like we had)
3) You can do crazy shit in times of recession like money that expires unless you spend it on goods in order to increase the velocity of money
4) Money laundering would be pretty hard.
5) Being able to easily build fintech products on top of it, instead of depending on dumb solutions like Plaid.
This sort of thing would be gamechanging IMO.
- HenryKissinger 5y ago> money that expires unless you spend it on goods in order to increase the velocity of money So, a gift card, but for everything?
- BurningFrog 5y agoAlso like a very steep negative interest rate.
- thysultan 5y agoparabolic charts go brrr.
- HDMI_Cable 5y agoDepends on the area. In some places (Canada, and I think California) gift cards don't expire.
- deleted 5y ago[deleted]
- deleted 5y ago[deleted]
- zeckalpha 5y agoDemurrage
- LordDragonfang 5y ago>You can do crazy shit in times of recession like money that expires unless you spend it on goods in order to increase the velocity of money This in particular sounds like a fantastic idea. One of the more out-there leftist ideas I've heard proposed is a monetary system where everyone gets a basic income but all personal bank accounts have a negative interest rate, to disincentivize accumulating wealth for wealth's sake. This seems like a simpler and more reasonable version of that.
- stickfigure 5y agoExpiring money sounds hard to enforce. It clearly wouldn't expire after it was spent or transferred. So how do you guarantee that it is spent/transferred to something that isn't a savings vehicle?
- npunt 5y agoWouldn’t a ledger be a path to solving this?
- naniwaduni 5y agoHyperinflation basically achieves this.
- tablespoon 5y ago> Hyperinflation basically achieves this. I don't think so. I think the idea they want the money to lose its value only if someone hoards it. If it's spent quickly enough, it retains its full value now and in the future. That's not how hyperinflation works.
- razius 5y agoWhat do you think hyperinflation is? "Gary North tells a story of a German citizen who realized too late that her money was on the way to becoming worthless: "…the truly marketable goods were gone. They were being hoarded. All she found was a large inventory of bedpans. She bought them in late 1923." https://mises.org/library/weimar-and-wall-street https://mises.org/library/weimar-and-wall-street
- jl2718 5y ago> Plaid. Sorry, you touched a nerve. They seriously think it’s a good idea to type your bank password into an app that is not your bank. That is the best we can do right now for making payments. Or credit cards with only 3% transaction fee. Coinbase asks you to do this. Coinbase. I’ve done some work on the Trezor code base. Once you see how much care this completely volunteer BIP process has put into security, consumer bank security becomes enraging. My bet is that very little will change. The fed is the banks.
- viraptor 5y agoDifferent failure modes. Trezor is close to "mess up and everything's gone". Banks are closer to: share the password and a new transfer destinations will be confirmed over phone, may be checked against fraud databases, may be reverted in flight, may be reverted after sending, may be covered by insurance, ...
- baby 5y agoI think there was some law in the UK that forced every bank to implement a common API. Not sure what the name was but I think the US could use some of that.
- kalleboo 5y agoUK CMA directive https://en.wikipedia.org/wiki/Open_banking#United_Kingdom https://en.wikipedia.org/wiki/Open_banking#United_Kingdom EU Payment Services Directive 2 (PSD2) https://en.wikipedia.org/wiki/Payment_Services_Directive#Revised_Directive_on_Payment_Services_(PSD2) https://en.wikipedia.org/wiki/Payment_Services_Directive#Rev...
- iamacyborg 5y agoOpen Banking?
- lapnitnelav 5y agoOh boy, if you have never worked for a bank, you would be inclined to believe they have this shit down to a T after being such early adopters of tech and all the risks they undertake given their roles. Turns out that it's best to ignore how the sausage is made.
- matheusmoreira 5y ago> money that expires unless you spend it on goods Why would anyone want that?
- kqr 5y agoI presume that sort of money would be cheaper than the other kind. It's never a question of whether anyone wants lower-quality money, it's only a question of price.
- hahaxdxd123 5y agoYou wouldn't want it. The Bidenbucks you get in a crisis would be the expiring money. It would force you to go spend it on food to keep your local restaurants alive, or replace your phone to keep the factories running, etc. Instead we all got $1200 and pumped it into Doge, some EV SPAC, or similar speculative "investments".
- MrPatan 5y agoWhy wouldn't the expiring bidenbucks be spent on Doge?
- iamacyborg 5y agoPresumably, the money expiring would put a downward price pressure on something like Doge as no one could afford the newly inflated price
- imtringued 5y agoThe seller gets bidenbucks. What is he going to do with them? Buy Doge?
- dskloet 5y agoIf they remain bidenbucks when spent, why would any merchant accept them for anything?
- dmantis 5y ago
- TheGigaChad 5y agoWhy is 1, 2, 3, 4 or 5 good?
- gspr 5y ago2) I guess we can debate how useful this is but surely it's strictly better than neutral, hence good? 3) Isn't it perhaps a useful way to provide a stimulus that people who already have enough cannot simply pile onto their hoarded supply? 4) I mean obviously we want to avoid money laundering.
- TheGigaChad 5y ago2 and 3 are net negatives, giving too much power to the leader of the country...bread and circuses in their prime example. 4 is debatable, but in general - bad, money laundering is what the BigBrother decides it is.
- gspr 5y agoVery conspiratorial of you. I, for one, would not like to discard the idea of a benevolent democratic government. Suit yourself.
- TheGigaChad 5y agoEnjoy the next 20 years then! I pray I will be alive when this system collapses.