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In this scenario, gov could easily penalize or ration conversions to cash, limiting this escape hatch. They wouldn't go that way immediately because outrage, bu
by abecedarius 5y ago
In this scenario, gov could easily penalize or ration conversions to cash, limiting this escape hatch. They wouldn't go that way immediately because outrage, but it'd get increasingly doable and tempting as people get used to CBDC. (Lots of precedent for this pattern.) I've already read one economist's proposal to tax cash withdrawals in order to support negative interest rates, a couple years ago.
- hellojesus 5y agoAgreed. It would be a cat & mouse game. Instead of cash trades, the gas-consumer could buy me a $200 Amazon gift card, etc. with their CBDC. There are always ways around restrictions, especially when people that aren't deterred by illegality and jail time like me exist. It would be an arms race.