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I don’t really get the point. My dollars are already digital. It’s not like my employer sends a stack of 100s to my banks vault every two weeks

alexb_ 4y ago
But you can still withdraw that for stacks of 100s if you so please. And these dollars cannot be tracked by large corporations hungry for any bit of data about you.
- nayuki 4y ago
  Banknotes have serial numbers printed on them. It's not inconceivable for ATMs to record serial numbers when withdrawing and banks to record serial numbers when depositing cash.
  - ronsor 4y ago
    You always can exchange banknotes for other banknotes of equivalent value, with anyone.
    - notch656a 4y ago
      That's exactly what tornadocash was doing, and the government claimed it was money laundering and blacklisted the exchange.
- pessimizer 4y ago
  Having digital dollars is completely unrelated to banning hard currency. I know this because the vast majority of current dollar business is completely digital, and hard currency exists. I mean, people withdraw bitcoin for stacks of $100s.
EMM_386 4y ago
But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future. No cash, and everything is traced. Nobody gets to be "paid under the table", no exchanging cash with your dealer for drugs, no buying things you may be ashmed to buy with cash.
- humanistbot 4y ago
  > But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future. That is quite a leap in logic, or "implies" is doing a lot of work in that sentence.
  - gerad 4y ago
    Historical precedent, and the fact that most of world trade is now dollarized, means that it’s incredibly unlikely that the US will ever deprecate cash. Unlike other currencies, all US currency ever issued remains legal tender [1]. Honestly, if you want untraceable transactions - using US cash is going to be way better than any digital currency. 1: https://www.federalreserve.gov/faqs/currency_12768.htm https://www.federalreserve.gov/faqs/currency_12768.htm
- giaour 4y ago
  I don’t know how you made the leap from “digital currencies will exist” to “non-digital currencies will cease to exist.” Even if that were to happen, you could still get paid under the table will gold, gemstones, bushels of corn, pallets of durable goods, etc. meatspace won’t simply end when a central bank issues a digital currency.
lxgr 4y ago
You don't have digital dollars, you have demand deposits denominated in dollars. Ideally, in a world where everybody has access to a checking account covered by adequate deposit insurance and interbank transfers are instantaneous, the difference is purely academic – but depending on where you live, reality falls short of that ideal. There are two possible solutions: Regulate the desired status quo into being (or trust the market do do it, or any combination thereof), or create a public alternative. These aren't in any way mutually exclusive.

alexb_ 4y ago

But you can still withdraw that for stacks of 100s if you so please. And these dollars cannot be tracked by large corporations hungry for any bit of data about you.

nayuki 4y ago
Banknotes have serial numbers printed on them. It's not inconceivable for ATMs to record serial numbers when withdrawing and banks to record serial numbers when depositing cash.
- ronsor 4y ago
  You always can exchange banknotes for other banknotes of equivalent value, with anyone.
  - notch656a 4y ago
    That's exactly what tornadocash was doing, and the government claimed it was money laundering and blacklisted the exchange.
pessimizer 4y ago
Having digital dollars is completely unrelated to banning hard currency. I know this because the vast majority of current dollar business is completely digital, and hard currency exists. I mean, people withdraw bitcoin for stacks of $100s.

EMM_386 4y ago

But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future. No cash, and everything is traced. Nobody gets to be "paid under the table", no exchanging cash with your dealer for drugs, no buying things you may be ashmed to buy with cash.

humanistbot 4y ago
> But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future. That is quite a leap in logic, or "implies" is doing a lot of work in that sentence.
- gerad 4y ago
  Historical precedent, and the fact that most of world trade is now dollarized, means that it’s incredibly unlikely that the US will ever deprecate cash. Unlike other currencies, all US currency ever issued remains legal tender [1]. Honestly, if you want untraceable transactions - using US cash is going to be way better than any digital currency. 1: https://www.federalreserve.gov/faqs/currency_12768.htm https://www.federalreserve.gov/faqs/currency_12768.htm
giaour 4y ago
I don’t know how you made the leap from “digital currencies will exist” to “non-digital currencies will cease to exist.” Even if that were to happen, you could still get paid under the table will gold, gemstones, bushels of corn, pallets of durable goods, etc. meatspace won’t simply end when a central bank issues a digital currency.

lxgr 4y ago

You don't have digital dollars, you have demand deposits denominated in dollars. Ideally, in a world where everybody has access to a checking account covered by adequate deposit insurance and interbank transfers are instantaneous, the difference is purely academic – but depending on where you live, reality falls short of that ideal. There are two possible solutions: Regulate the desired status quo into being (or trust the market do do it, or any combination thereof), or create a public alternative. These aren't in any way mutually exclusive.