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> if you're in a Western country with low inflation and good banks there seems like little point. Not at all. Some EU countries aside, most western countries d
by rchaud 4y ago
> if you're in a Western country with low inflation and good banks there seems like little point.
Not at all. Some EU countries aside, most western countries do not have a good inter-bank payment system and are still dependent on Mastercard, Visa and Paypal to handle merchant transaction settlements.
Local currency cash is the only thing a state has control over. As use of cash declines, it becomes important to have a centrally-administered digital cash alternative, just like paper cash.
- dmurray 4y ago> Local currency cash is the only thing a state has control over. The state has control over its banks. You can't generally get a Mastercard or Visa card that isn't issued by a bank doing business in your jurisdiction. How tightly the state holds the reins of the bank depends, but usually they're among the most regulated of the nominally private institutions we have.
- rchaud 4y agoCash usually doesn't carry any fees, whereas electronic transactions incur large enough fees to make small transactions burdensome for small businesses. Payments are an important enough area IMO for countries to implement interoperable standards, rather than wait for the private sector, all competing among themselves, to offer one.