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As an addendum the commercial banks have a profit incetive in form of future uses of said know-your-customer information (overdrafts, financing, mortgages...) e
by ElectricalUnion 4y ago
As an addendum the commercial banks have a profit incetive in form of future uses of said know-your-customer information (overdrafts, financing, mortgages...) even if actually "just managing your money around" is net unprofitable, as it usually is.
I don't see how having the govt foot the unprofitable part of the whole thing for no clear benefit for them (govt already know everything, kinda) will help the financial system at all.
- starkd 4y agoI think one plan is to have CBDC accounts direct with the federal reserve. These accounts would be convenient with the added cost of a lower interest rate than regular accounts. So, regular banks could still compete. They call this the risk of "disintermediation". There is literature at the Federal Reserve website that discusses this. https://www.federalreserve.gov/econres/feds/the-macroeconomic-implications-of-cbdc-a-review-of-the-literature.htm https://www.federalreserve.gov/econres/feds/the-macroeconomi...