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Today dollars are held and transacted through a number of systems/banks. As such, the government doesn't have a central place to monitor and or interrupt its s

Today dollars are held and transacted through a number of systems/banks. As such, the government doesn't have a central place to monitor and or interrupt its subject's transactions. This and the removal of cash is the primary power play of a CBDC. As for the creation of dollars today, it's kind of like flipping bits in a computer, but through a network of banks that get their fountain of debt backings from the Federal Reserve (or insert particular Fiat's bank here) as a central bank. So the bit flipping happens at the top and is distributed to member banks at very low interest rates. I personally think the government should let people pick what they think is money for themselves. Of course they won't as the dollar and other fiat systems are their primary means of control.

kayamon 5y ago
Is there a good reason why the new money doesn't just get sent by mail to every individual citizen equally, rather than being handed out only to large banks?
- reedjosh 5y ago
  Well, I don't think there's even a good reason for the system to begin with, but generally I think the reasoning posited is something like: Debt is issued to those that are believed can pay it back. Giant low interest loans are given to the member banks and they due diligence on smaller banks. The whole thing is a tree of larger institutions lending to smaller ones, and eventually the money makes it to markets that interact with actual customers -- mortgages and credit lines. In this way debt is limited to those that are expected to largely pay it back. Over time, more and more of the dollars in the system are owed to someone else. Our dollars literally come into existence as debt. This is the true source of inflation, but some make arguments about velocity of money and whatnot. The defaulting of debts and subsequent vacuum where debt based dollars used to be is also the actual cause of the so call 'business cycle'.

kayamon 5y ago

Is there a good reason why the new money doesn't just get sent by mail to every individual citizen equally, rather than being handed out only to large banks?

reedjosh 5y ago
Well, I don't think there's even a good reason for the system to begin with, but generally I think the reasoning posited is something like: Debt is issued to those that are believed can pay it back. Giant low interest loans are given to the member banks and they due diligence on smaller banks. The whole thing is a tree of larger institutions lending to smaller ones, and eventually the money makes it to markets that interact with actual customers -- mortgages and credit lines. In this way debt is limited to those that are expected to largely pay it back. Over time, more and more of the dollars in the system are owed to someone else. Our dollars literally come into existence as debt. This is the true source of inflation, but some make arguments about velocity of money and whatnot. The defaulting of debts and subsequent vacuum where debt based dollars used to be is also the actual cause of the so call 'business cycle'.