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>I'm trying to figure out the why, because it disintermediates the entire payment sector, and every single dollar going into the pockets of banks /payment proc

>I'm trying to figure out the why, because it disintermediates the entire payment sector, and every single dollar going into the pockets of banks /payment processors is going to go to consumers, or be returned to the public. It'll help underbanked people because by virtue of being a US citizen, or whatever jurisdiction we're talking about, you'll have free access to a costless payment system. It'd also unify and standardize payments across an entire currency zone, getting rid of the bazillion API / interface issues that the currently glued together system has. The benefits are pretty obvious. As to employment, if we're going to create employment through bullshit jobs we might as well set up a toll booth every ten meters until there's no unemployment or have people roll stones up and down mountains.

erentz 5y ago
If you just want one government owned and operated payment system what does that have to do with having a CBDC?
- Barrin92 5y ago
  that's literally what the CBDC is for, creating a public payment system. Just like you walk into a store and pay with dollars, you can whip out your phone and pay with e-dollars. The practical effect is that it'd replace the for-profit payment industry.
walkerbrown 5y ago
> disintermediates the entire payment sector Unfortunately, the recent proposal specifically reassures commercial banks that any US CBDC will be intermediated (right on page 2) [1]. Board of Governors can't risk jeopardizing their speaking fees. Individual FedAccounts via USPS locations is the way to go for the underbanked [2]. But, disappointingly, this is not that. [1] https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf https://www.federalreserve.gov/publications/files/money-and-... [2] https://dx.doi.org/10.2139/ssrn.3192162 https://dx.doi.org/10.2139/ssrn.3192162
fauigerzigerk 5y ago
>every single dollar going into the pockets of banks /payment processors is going to go to consumers, or be returned to the public. I doubt that. It would cut some costs and profit margins, but it wouldn’t be free to run the new system either. Someone needs to run the infrastructure, provide customer support, resolve conflicts, fight fraud, create apps and integrations, etc. It seems unlikely that central banks will do all of it themselves. The payment processing industry won’t go away, but the system will be simpler and they will have some welcome competition in some areas, which should depress the fees in high fee countries such as the US. In Europe it wouldn’t change much in terms of cost I think.

erentz 5y ago

If you just want one government owned and operated payment system what does that have to do with having a CBDC?

Barrin92 5y ago
that's literally what the CBDC is for, creating a public payment system. Just like you walk into a store and pay with dollars, you can whip out your phone and pay with e-dollars. The practical effect is that it'd replace the for-profit payment industry.

walkerbrown 5y ago

> disintermediates the entire payment sector Unfortunately, the recent proposal specifically reassures commercial banks that any US CBDC will be intermediated (right on page 2) [1]. Board of Governors can't risk jeopardizing their speaking fees. Individual FedAccounts via USPS locations is the way to go for the underbanked [2]. But, disappointingly, this is not that. [1] https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf https://www.federalreserve.gov/publications/files/money-and-... [2] https://dx.doi.org/10.2139/ssrn.3192162 https://dx.doi.org/10.2139/ssrn.3192162

fauigerzigerk 5y ago

>every single dollar going into the pockets of banks /payment processors is going to go to consumers, or be returned to the public. I doubt that. It would cut some costs and profit margins, but it wouldn’t be free to run the new system either. Someone needs to run the infrastructure, provide customer support, resolve conflicts, fight fraud, create apps and integrations, etc. It seems unlikely that central banks will do all of it themselves. The payment processing industry won’t go away, but the system will be simpler and they will have some welcome competition in some areas, which should depress the fees in high fee countries such as the US. In Europe it wouldn’t change much in terms of cost I think.