5 ms·

There are many advantages (to the government). One is this will CBDCs will effectively be a digital ID with a full financial transaction history. Secondly, it

by krona 4y ago

There are many advantages (to the government). One is this will CBDCs will effectively be a digital ID with a full financial transaction history. Secondly, it would prevent bank runs from happening. Thirdly, monetary sovereignty. This is a big one for the EU. It's all in the EU CBDC working paper https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e7c.en.pdf https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e...

JumpCrisscross 4y ago
> it would prevent bank runs from happening This is not true. > monetary sovereignty. This is a big one for the EU. This is only true to the degree Bitcoin is a threat to the euro or pound.
- krona 4y ago
  > This is only true to the degree Bitcoin is a threat to the euro or pound. It's got nothing to do with Bitcoin and more to do with dedollarization. Read the working paper.
  - notahacker 4y ago
    The threat of dollarization of the UK economy is pretty minimal, and I'm not seeing how the present proposal to grant individuals optional rights to hold a relatively small sterling balance in a basic bank account administered by the BofE rather than some other entity changes that. The working paper seems more worried by the proposed Libra (remember that!) than the USD...
  - JumpCrisscross 4y ago
    > Read the working paper I did. It [1] referenced a paper [2] to claim "the rise of digital money could threaten monetary sovereignty," though it's more concerned with "digital currency issued by 'BigTech,'" for example Libra, than Bitcoin. The sovereignty argument is predicated on a threat of substitution. > more to do with dedollarization Your working paper doesn't mention dollarization as a threat to European monetary sovereignty. (The EU seeks to dedollarize its economy.) "Digital dollarization" has nothing to do with the dollar per se, but instead refers to the replacement of national currencies with non-national digital currencies. [1] https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e7c.en.pdf https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e... page 13 [2] https://www.nber.org/system/files/working_papers/w26300/w26300.pdf https://www.nber.org/system/files/working_papers/w26300/w263...

by krona 4y ago

JumpCrisscross 4y ago

> it would prevent bank runs from happening This is not true. > monetary sovereignty. This is a big one for the EU. This is only true to the degree Bitcoin is a threat to the euro or pound.

krona 4y ago
> This is only true to the degree Bitcoin is a threat to the euro or pound. It's got nothing to do with Bitcoin and more to do with dedollarization. Read the working paper.
- notahacker 4y ago
  The threat of dollarization of the UK economy is pretty minimal, and I'm not seeing how the present proposal to grant individuals optional rights to hold a relatively small sterling balance in a basic bank account administered by the BofE rather than some other entity changes that. The working paper seems more worried by the proposed Libra (remember that!) than the USD...
- JumpCrisscross 4y ago
  > Read the working paper I did. It [1] referenced a paper [2] to claim "the rise of digital money could threaten monetary sovereignty," though it's more concerned with "digital currency issued by 'BigTech,'" for example Libra, than Bitcoin. The sovereignty argument is predicated on a threat of substitution. > more to do with dedollarization Your working paper doesn't mention dollarization as a threat to European monetary sovereignty. (The EU seeks to dedollarize its economy.) "Digital dollarization" has nothing to do with the dollar per se, but instead refers to the replacement of national currencies with non-national digital currencies. [1] https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e7c.en.pdf https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2713~91ddff9e... page 13 [2] https://www.nber.org/system/files/working_papers/w26300/w26300.pdf https://www.nber.org/system/files/working_papers/w26300/w263...