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> Central bank digital currencies differ from existing digital money available to the general public, such as the balance in a bank account, because they would

> Central bank digital currencies differ from existing digital money available to the general public, such as the balance in a bank account, because they would be a direct liability of the Federal Reserve, not a commercial bank. Semantics. People want to know their savings are guaranteed and they can't possibly be lost. The FDIC does just that. The public doesn't care if the ultimate grantor is the Fed or the Congress or the Senate. And I think rightfully so because in the end the ultimate grantors securing Americans savings are always and in any event 3 entities: 1) the U.S. Army 2) taxpayers alive now 3) future generations of taxpayers. This digital dollar or digital euro is something that nobody asked for and nobody wants. At least with crypto you can argue that they fill the role of online casino in disguise. Which isn't really productive but at least there are people who actually flock to it.

jqpabc123 4y ago
This digital dollar or digital euro is something that nobody asked for and nobody wants. Digital dollars are what most people use every day --- credit and debit cards. When was the last time you paid with actual paper cash? The only difference with a CBDC in place will be faster processing and lower costs due to realtime interbank transfers that are currently only available from 8AM until 5 PM on weekdays --- weekends and holidays excluded.
- LinuxBender 4y ago
  When was the last time you paid with actual paper cash? I almost exclusively use cash. The exception is for the few things that local stores do not provide and for car insurance. I will remedy some of that soon e.g. Surety Bond. Even then I can still use cash to pay a local transport vendor to drive into a bigger town a few hours away and pick things up for me.
  - jqpabc123 4y ago
    You are the exception rather than the rule. But the good news is, you won't be affected at all. No one is proposing to eliminate the use of physical cash. Nothing about a CBDC requires cash to be eliminated. Any claims to the contrary are pure FUD.
- starkd 4y ago
  CBDC may feel the same to the end user. But it is fundamentally different in terms of what it represents. The possibility of a surveillance police state should scare anyone with a brain.
  - asdfk-12 4y ago
    Accounting for economic units is evident as far back as the Akkadian empire 5,000 years ago. Double-entry bookkeeping, central banking, ACH, SWIFT, etc. are iterations on a theme. CBDCs represent an incremental shift away from batch processing toward real-time messaging. The current paradigm of universally KYC'd accounts, easily surveilled ACH, and a government-run interbank FedWire service already offer complete transparency to law enforcement and the treasury department.
    - starkd 4y ago
      True to some extent. But digital money brings it to a whole new level. Now they can shut down accounts. CBDC will allow a finer-grained control of all transactions. The ability to monitor every transaction you make.
      - jqpabc123 4y ago
        Now they can shut down accounts. You think your bank can't shut down your account now? The ability to monitor every transaction you make. You think your bank and CC company can't do this now? The only way to avoid being "monitored" is to use cash. And a CBDC won't change this.
  - jqpabc123 4y ago
    But it is fundamentally different in terms of what it represents. It is fundamentally no different than what already exists --- just faster, more capable, more convenient and less costly.
    - Bubble_Pop_22 4y ago
      If that was really the case why don't say JPMorgan and Wells Fargo enter in a partnership to provide such service? If it's really cheaper, faster more convenient then they'd be enthusiastic about doing it because it would look good for their bottom line. Money at the end of the day represents trust. If the Fed is the most trustworthy entity then JPM and Wells Fargo are at #2 and #3. Nobody would care if the #2 and #3 institution exchange money between each other instantaneously and 24/7/365 but only settle their accounts at the Fed weekly or bi-weekly. This thing for everybody to have an account with the Fed in the form of tokens (digital dollars and digital euros) is something really strange and that nobody has asked for. It is the project of some beurocrat which has seen a topic of interest among the population (crypto) and wants to look good to his superior or wants to claim that "I was at the helm of the team which developed the Digital Dollar".

jqpabc123 4y ago

This digital dollar or digital euro is something that nobody asked for and nobody wants. Digital dollars are what most people use every day --- credit and debit cards. When was the last time you paid with actual paper cash? The only difference with a CBDC in place will be faster processing and lower costs due to realtime interbank transfers that are currently only available from 8AM until 5 PM on weekdays --- weekends and holidays excluded.

LinuxBender 4y ago
When was the last time you paid with actual paper cash? I almost exclusively use cash. The exception is for the few things that local stores do not provide and for car insurance. I will remedy some of that soon e.g. Surety Bond. Even then I can still use cash to pay a local transport vendor to drive into a bigger town a few hours away and pick things up for me.
- jqpabc123 4y ago
  You are the exception rather than the rule. But the good news is, you won't be affected at all. No one is proposing to eliminate the use of physical cash. Nothing about a CBDC requires cash to be eliminated. Any claims to the contrary are pure FUD.
starkd 4y ago
CBDC may feel the same to the end user. But it is fundamentally different in terms of what it represents. The possibility of a surveillance police state should scare anyone with a brain.
- asdfk-12 4y ago
  Accounting for economic units is evident as far back as the Akkadian empire 5,000 years ago. Double-entry bookkeeping, central banking, ACH, SWIFT, etc. are iterations on a theme. CBDCs represent an incremental shift away from batch processing toward real-time messaging. The current paradigm of universally KYC'd accounts, easily surveilled ACH, and a government-run interbank FedWire service already offer complete transparency to law enforcement and the treasury department.
  - starkd 4y ago
    True to some extent. But digital money brings it to a whole new level. Now they can shut down accounts. CBDC will allow a finer-grained control of all transactions. The ability to monitor every transaction you make.
    - jqpabc123 4y ago
      Now they can shut down accounts. You think your bank can't shut down your account now? The ability to monitor every transaction you make. You think your bank and CC company can't do this now? The only way to avoid being "monitored" is to use cash. And a CBDC won't change this.
- jqpabc123 4y ago
  But it is fundamentally different in terms of what it represents. It is fundamentally no different than what already exists --- just faster, more capable, more convenient and less costly.
  - Bubble_Pop_22 4y ago
    If that was really the case why don't say JPMorgan and Wells Fargo enter in a partnership to provide such service? If it's really cheaper, faster more convenient then they'd be enthusiastic about doing it because it would look good for their bottom line. Money at the end of the day represents trust. If the Fed is the most trustworthy entity then JPM and Wells Fargo are at #2 and #3. Nobody would care if the #2 and #3 institution exchange money between each other instantaneously and 24/7/365 but only settle their accounts at the Fed weekly or bi-weekly. This thing for everybody to have an account with the Fed in the form of tokens (digital dollars and digital euros) is something really strange and that nobody has asked for. It is the project of some beurocrat which has seen a topic of interest among the population (crypto) and wants to look good to his superior or wants to claim that "I was at the helm of the team which developed the Digital Dollar".