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If it leads to stagflation it might be a real problem, that definitely worries central banks. Several central banks around the world are working on digital cur
by mejutoco 5y ago
If it leads to stagflation it might be a real problem, that definitely worries central banks.
Several central banks around the world are working on digital currencies (https://en.wikipedia.org/wiki/Central_bank_digital_currency https://en.wikipedia.org/wiki/Central_bank_digital_currency).
These would unlock more complex measures than giving people money and hope for the best to activate the economy (people might just save the money). Things like giving money to spend only in certain things, or for a limited time might come into effect then.
- aspenmayer 5y agoChina’s CBDC already incorporates limited time balances, which were demonstrated with airdrops that had an expiration date. Flexa has partnered with various crypto projects and traditional business to offer crypto denominated coupons that have an expiration date as well. I’ll admit I’m bullish on crypto generally, but not like this. It may work for CBDCs, in that it will drive spending over saving to some degree, but I suspect they will be treated like radioactive hot potatoes. What’s to stop someone from selling their CBCD and simply buying a competing stablecoin that isn’t going to expire? Inflation can be both unpredictable and devastating; yet, predictable sudden devastating devaluation via expiration dates is held up as an improvement over the non-CBDC stablecoin status quo?
- lottin 5y ago> China’s CBDC already incorporates limited time balances Citation?
- aspenmayer 5y agohttps://www.bloomberg.com/news/articles/2021-05-09/china-s-much-hyped-digital-yuan-fails-to-impress-early-users https://www.bloomberg.com/news/articles/2021-05-09/china-s-m...