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I feel like this is the primary justification the US gov would have for issuing a CBDC. It's smack in the middle of the "potential benefits", so it's clearly th

I feel like this is the primary justification the US gov would have for issuing a CBDC. It's smack in the middle of the "potential benefits", so it's clearly the most important. >> Today, the dollar is widely used across the globe because of the depth and liquidity of U.S. financial markets, the size and openness of the U.S. economy, and international trust in U.S. institutions and rule of law. It is important, however, to consider the implications of a potential future state in which many foreign countries and currency unions may have introduced CBDCs. Some have suggested that, if these new CBDCs were more attractive than existing forms of the U.S. dollar, global use of the dollar could decrease—and a U.S. CBDC might help preserve the international role of the dollar.

chomp 5y ago
Not to be overly cynical, but this sounds like, "China's doing it so we need to do it too." I personally support the digital dollar but this paragraph stuck out to me: >Some have suggested that a CBDC could reduce common barriers to financial inclusion and could lower transaction costs, which could be particularly helpful for lower-income households. First, I have no idea who the "some" are that they are referring to. There's nothing more inclusive than a piece of paper that you can hold, regardless of socioeconomic status, condition, or location. There's no doubt that a digital dollar would do very little to be inclusive of vulnerable populations, especially if you need hardware to spend it.
- majewsky 5y ago
  > There's nothing more inclusive than a piece of paper that you can hold How is a 100-dollar bill going to help you purchase goods on the internet? This is particularly significant for low-income rural communities where, if all you have is dollar bills, you get to spend them at the one supermarket within reach, or if you have the money to afford a car, you can drive to the next town to have some actual choice. A currency that you can spend on-line is going to be more versatile in this scenario because of the larger breadth of accessible merchants and goods.

chomp 5y ago

Not to be overly cynical, but this sounds like, "China's doing it so we need to do it too." I personally support the digital dollar but this paragraph stuck out to me: >Some have suggested that a CBDC could reduce common barriers to financial inclusion and could lower transaction costs, which could be particularly helpful for lower-income households. First, I have no idea who the "some" are that they are referring to. There's nothing more inclusive than a piece of paper that you can hold, regardless of socioeconomic status, condition, or location. There's no doubt that a digital dollar would do very little to be inclusive of vulnerable populations, especially if you need hardware to spend it.

majewsky 5y ago
> There's nothing more inclusive than a piece of paper that you can hold How is a 100-dollar bill going to help you purchase goods on the internet? This is particularly significant for low-income rural communities where, if all you have is dollar bills, you get to spend them at the one supermarket within reach, or if you have the money to afford a car, you can drive to the next town to have some actual choice. A currency that you can spend on-line is going to be more versatile in this scenario because of the larger breadth of accessible merchants and goods.