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To be clear, that's a tremendous concern, but it doesn't have any connection to crypto. The reason that the money in your bank account can't expire is because i
by mitthrowaway2 4y ago
To be clear, that's a tremendous concern, but it doesn't have any connection to crypto. The reason that the money in your bank account can't expire is because if a private bank tried to do that, it would trigger a bank run - everyone would withdraw their funds as paper, or transfer them to a different bank. The reason the CBDC is different is because there cannot be a run on a central bank as the issuer of currency, and it alone can assert that its unit of account is a legal replacement for paper banknotes. So it can establish policies like an 'expiry date' for deposited funds, which a private bank could not (at least, not until the central bank does first).
Banks certainly can limit where you spend your money though - again, with the exception of cash withdrawals.
- Fervicus 4y agoYour original point of contention was that CBDC isn't even a cryptocurrency. It is presumably using the tech that was built by the crypto community, like smart contracts.
- mitthrowaway2 4y agoWhy would you presume that? I think it's much more likely to use the same tech that banks and credit cards use for their own bookkeeping. "Money with an expiry date" is in line with line-of-credit products that banks already offer, and taken to its continuous limit, is simply a negative interest rate.
- Fervicus 4y agoBecause they are already talking about it. https://www.forbes.com/sites/sap/2021/03/25/as-programmable-money-emerges--central-banks-ramp-up-for--tokenized-economy/?sh=5431fb91c402 https://www.forbes.com/sites/sap/2021/03/25/as-programmable-... https://www.federalreserve.gov/econres/notes/feds-notes/what-is-programmable-money-20210623.html https://www.federalreserve.gov/econres/notes/feds-notes/what...
- int_19h 4y agoThere's no need for them to use smart contracts. Why would you need a self-enforcing contract if you're the guy with monopoly on violence who's enforcing everything in the first place? Smart contracts are an attempt to solve the issue of decentralized trust; this is literally the opposite, an attempt at hyper-centralization.