5 ms·

Small correction, put the money directly into the consumers wallets. Since the wallet itself would also be implemented as a bank account, likely controlled by

by er4hn 5y ago

Small correction, put the money directly into the consumers wallets. Since the wallet itself would also be implemented as a bank account, likely controlled by the central entity they would be able to monitor both it's balance as well as where money is spent and transferred to. This enables the implementing of monetary polices such as "Here is $100 to spend on local restaurants within 30 days. Any unused money will be removed on the 31st day."

Godel_unicode 5y ago
Implementing that policy would require the central bank to be doing a wholesale analysis of consumer spending (local restaurants). That's an extreme increase in the amount of citizens information we're giving to the government, for at best a dubious reason.
- fedreserved 5y ago
  That's the plan Stan. every transaction being recorded, and taking away citizens ability to not report income is the ultimate goal. Get rid of cash, make every transaction knowable, and suddenly the government's ability to collect it's taxes due becomes omnipotent
- rattlesnakedave 5y ago
  privacy concerns will likely not even be on a central bank’s radar should any of this come to be.
- er4hn 5y ago
  It does require more data and analysis, but is entirely possible. I'm not taking a stance on this (in reference to your 'dubious' comment) but I'm trying to elaborate on how this would be implemented. Consider a database where each account has the owners name, local address, other demographic data in addition to their account balance. The database also stores their transactions. Now allow businesses to have their own central bank accounts as well. The business has its location and type of business listed as well. Assuming all this data is entered correctly and up to date the implementation of "$100 to be spent in 30 days on local restaurants" is as follows. Assume local is, within 10 miles of the account owners home, as a nonce value: * Add $100 to person's central bank account * Over the next 30 days person buys: shoes locally, a pizza locally, and orders a book from Amazon. * On day 31 the central bank examines all transactions. By referencing each account money was transfered to the bank can lookup distance and type of business. * Remove the unspent amount, if any, from the account. Now, there is a fun edge case here: what if the person spends their $100 credit on books from Amazon instead of food and has no money left? Do they end up with a negative balance? This penalizes both people mispending money as well as those where they spent money at a place that is miscategorized ( for example, the local deli is categorized as a shell corporation ). So clearly the basic idea needs some work, but it is not undoable. Especially if business owners are incentived to have their information be accurate and up to date to recieve monetary funds.
  - Godel_unicode 5y ago
    I'm not sure how this is different than what I said, other than being much, much longer?

by er4hn 5y ago

Godel_unicode 5y ago

Implementing that policy would require the central bank to be doing a wholesale analysis of consumer spending (local restaurants). That's an extreme increase in the amount of citizens information we're giving to the government, for at best a dubious reason.

fedreserved 5y ago
That's the plan Stan. every transaction being recorded, and taking away citizens ability to not report income is the ultimate goal. Get rid of cash, make every transaction knowable, and suddenly the government's ability to collect it's taxes due becomes omnipotent
rattlesnakedave 5y ago
privacy concerns will likely not even be on a central bank’s radar should any of this come to be.
er4hn 5y ago
It does require more data and analysis, but is entirely possible. I'm not taking a stance on this (in reference to your 'dubious' comment) but I'm trying to elaborate on how this would be implemented. Consider a database where each account has the owners name, local address, other demographic data in addition to their account balance. The database also stores their transactions. Now allow businesses to have their own central bank accounts as well. The business has its location and type of business listed as well. Assuming all this data is entered correctly and up to date the implementation of "$100 to be spent in 30 days on local restaurants" is as follows. Assume local is, within 10 miles of the account owners home, as a nonce value: * Add $100 to person's central bank account * Over the next 30 days person buys: shoes locally, a pizza locally, and orders a book from Amazon. * On day 31 the central bank examines all transactions. By referencing each account money was transfered to the bank can lookup distance and type of business. * Remove the unspent amount, if any, from the account. Now, there is a fun edge case here: what if the person spends their $100 credit on books from Amazon instead of food and has no money left? Do they end up with a negative balance? This penalizes both people mispending money as well as those where they spent money at a place that is miscategorized ( for example, the local deli is categorized as a shell corporation ). So clearly the basic idea needs some work, but it is not undoable. Especially if business owners are incentived to have their information be accurate and up to date to recieve monetary funds.
- Godel_unicode 5y ago
  I'm not sure how this is different than what I said, other than being much, much longer?