3 ms·
What you want is instant interbank settlements that have existed for 20+ years in some places. The scope of CBDCs is way broader than that. If no commercial ba
by hocuspocus 4y ago
What you want is instant interbank settlements that have existed for 20+ years in some places.
The scope of CBDCs is way broader than that. If no commercial bank is impacted by a CBDC then it wouldn't be a central bank digital currency, just a digital currency, and that's already the case for most of the money supply. If you use the term CBDC you're implying that the central bank would oversee a much bigger part of the money creation.
- jqpabc123 4y agoIf no commercial bank is impacted by a CBDC Commercial banks will be impacted --- in a good way. Interbank transactions will take place instantly 24/7/365 at zero cost. Consumers will be impacted too --- in a good way. They'll be able to transfer money from their bank account to merchants, friends and family instantly 24/7/365 at zero cost --- no delays, no fees, no processors, no paper forms, no middlemen --- something that never existed before --- at least not in the USA. Basically, a CBDC will make it possible to add digital wallet functionality to all bank accounts. Like it or not, a CBDC is coming. The financial case for it is overwhelming.