3 ms·
> At the risk of sounding conspiratorial, I think this is part of an overarching move to slowly phase out physical cash co we could have practical negative inte
by jbay808 5y ago
> At the risk of sounding conspiratorial, I think this is part of an overarching move to slowly phase out physical cash co we could have practical negative interest rate one day.
I agree it's no coincidence that this development is occurring when interest rates have dropped to zero. A negative interest rate is most likely the main motivation for central bank digital currency. How else will the asset market be propped back up after the next crash?
- lariati 5y agoI would think we would move to just buy assets directly. I don't think the Fed is going to go to a digital dollar just to cut Fed funds to negative. It just doesn't seem like it has enough reward for the risk and stress on the banks. I would think it is more to get rid of all this useless change in circulation, don't have to worry about the cost of paper bills then.