Dwindling cash use is pushing central banks to race toward digital currencies | Crypto Craft

Dwindling cash use is pushing central banks to race toward digital currencies | Crypto Craft

Dwindling cash use is pushing central banks to race toward digital currencies

From cnbc.com

Central banks are accelerating their work on digital currencies and investors are taking note. Earlier this year, the Bank of International Settlements published its latest survey showing that 86% of the 65 central banks it spoke to are doing some form of work on central bank digital currencies (CBDCs), be it research, proofs of concept or pilot development. Almost 15% are moving toward actual research for pilots. What has spurred this activity? Deputy Governor of the Bank of Italy, Piero Cipollone, told CNBC that the increased focus on CBDCs stems from the general move away from cash, adding that “this could ... (full story)

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Feb 13, 2021 10:40am — Edited

Quoting RossEdwards

Disliked

This nonsense about Digital $$ and Digital €s just that.. nonsense. It has nothing to do with cryptocurrencies. Its simply a new option for value denomination in BackOffice terms . A digital euro would still be a euro. A digital euro would not replace cash, but rather complement it. A digital euro would give you an additional choice about how to pay through credit cards, Online banking etc and actively encourage innovation in retail payments.innovation making transactions easier and hopefully cheaper, thus contributing to financial inclusion alongside...

Ignored

Yes thats what someone who is loves big government would say about government backed cryptocurrencies.

First you need to know how government make money ,cash has no serial number associated with the bearer and requires a bank or a vehicle to make it.This could be printing without any bank for a start.
Anyone who says it's the same thing as a digital $ isn't paying attention.The Gov$ or any other currency could go straight to the man on the street via an ap say & that can be tracked or even programmed to pay for xyz.

It can be tracked it's entire circulation without interruption via the ledger ,they hold the ledger.

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Feb 14, 2021 11:22am

Digital money is as much of a con as is fiat money, but more so. The banks/govts have mastered money printing but need to be able to do it faster to keep up with their own con. Digital money will allow them to have more control and at the touch of a button will stop you from spending anything when the time comes to slow the coming hyperinflation. With it they could effectively control all prices.
We have seen the race to the bottom to devalue, now we will be seeing who can add more zeros to the end of the govt bank balance to allow them to buy their way out. The Romans (or was it Greeks) did it by clipping gold coins until they decided coins didnt actually need to be made of gold (sound familiar? [devaluing]). Now we have computers, we dont even need coins made of anything (not even the cheap base metal of modern currency) . Fiat money is becoming "not worth the paper it is printed on, literally, but digital currency is not the answer. We need to address the issues of spending above our actual income. By "we" I mean governments. We are ultimately heading back to a barter economy where only chickens and gold have value!

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Feb 13, 2021 10:59am

It would be China if Ross had any say in our futures ,because he's either careless with liberty or just doesn't care

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Feb 14, 2021 10:20am — Edited

The potential of this is to bring the government closer to money printer .The closer you are the more powerful and wealthy your be .Look up Cantillon Effect.
Banks serve many purpose you need them.

Central banks already do not follow any rules of economics and are basically digging a huge hole.They only have that printing lever left behind the curtain
You need less to nothing, not more Central Banks.No way are they independent.

"The Cantillon Effect refers to the change in relative prices resulting from a change in money supply. The change in relative prices occurs because the change in money supply has a specific injection point and therefore a specific flow path through the economy."

article =reasons why CBDC are a bad idea below.

https://mises.org/wire/why-central-b...s-are-bad-idea

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Feb 14, 2021 3:45am

Quoting hussin naiji

Disliked

{quote} agree with you but I do not trust digital currencies If you lose your password, your digital currency will be destroyed. this case give to me low reliability about digital currency

Ignored

Interesting point @husin. CBDCs are frequently compared with cryptocurrencies such as bitcoin. But apart from both being digital, they in fact have little in common. They will not be irrecoverable nor will they be decentralized. CBDC depending on its form, will be much more similar to Digital Cash without the handling costs , than any form of Cryptocurrency. The CBDC concept is not new. But since one consequence could be to bypass the commercial banking system (cut out all those pesky bank charges) and potentially completely undercut the current 2 tier system its been taken slowly till now bcs its a BIG hot potato.
It is likely that we will see considerable pushback from the commercial financial players in how this develops. The consequences of CBDCs would be revolutionary, with huge far reaching consequences for the entire role of the commercial financial system.
One factor thats kicked new focus has been the proposal of multinational cartels like FB/Google/Apple to introduce Stable Coins which would be both disruptive to Commercial banking system AND undermine national regulatory control across the financial system.
Whatever happens, I dont see it happening fast..

Traders should stay on top of this. And be very careful about where they get their information from.
A lot of big players will be spinning misinformation and buying public opinion.

This is a good starter link.... https://www.gleisslutz.com/en/Digital_Central_Bank_Money.html

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Feb 13, 2021 6:14am

there is no "race " towards digital currency, 98 % of ALL currencies are already digital.
duh!!

what they really mean but never said it, is Blockchain transaction traceable digital fiat
these banksters cannot even articulate a news article truthfully.

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Feb 13, 2021 2:14am

I do not get the need for digital currencies? Your current account balance is not held in cash in some big vault, it is held in binary on some centralised server. What additional functionality are digital currencies going to provide? I also believe the issuer is the same (your national/supra-national central bank). So it just seems like a term to give the impression finance is evolving. Please enlighten me!

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Feb 13, 2021 8:26am

This nonsense about Digital $$ and Digital €s just that.. nonsense. It has nothing to do with cryptocurrencies.
Its simply a new option for value denomination in BackOffice terms . A digital euro would still be a euro. A digital euro would not replace cash, but rather complement it. A digital euro would give you an additional choice about how to pay through credit cards, Online banking etc and actively encourage innovation in retail payments.innovation making transactions easier and hopefully cheaper, thus contributing to financial inclusion alongside cash.

There seems to be a lot of misunderstanding about this.

1

Feb 14, 2021 1:27am

Quoting SterlingSnip

Disliked

Cash all life

Ignored

Yes. This is why briefcases were invented.

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Feb 13, 2021 8:22am

Cash all life

1

Feb 14, 2021 1:18pm — Edited

Quoting Bones

Disliked

"The Cantillon Effect refers to the change in relative prices resulting from a change in money supply. The change...

Ignored

That was me immediately above, forgot to log in.

Yeah, so, basically if everyone is given a wheelbarrow of fluff, those who actually need it would spend it how they usually do to maintain their previous state of hand to mouth existence. This is lesson one in good public policy, although a second best policy, but that is lesson two.

But for everyone else, they would utilise it, at the margin, in a manner that they would not otherwise do - spend it on stuff they value less (this includes saving it or paying off debt). If you buy gold, that's kinda interesting, innit??

Increased demand for goods and services that are of lower valuation to society. Relative prices change.

This makes no sense and is a distortion. Resources that would have been used to produce higher valued things are now diverted to producing non-optimal stuff. Who cares, eh? It is stimulating something, anything.

There is more nuance/feedback loops, of course, which is the flow effect and that's when the war started.

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Feb 13, 2021 9:43am

Quoting RossEdwards

Disliked

This nonsense about Digital $$ and Digital €s just that.. nonsense. It has nothing to do with cryptocurrencies. Its simply a new option for value denomination in BackOffice terms . A digital euro would still be a euro. A digital euro would not replace cash, but rather complement it. A digital euro would give you an additional choice about how to pay through credit cards, Online banking etc and actively encourage innovation in retail payments.innovation making transactions easier and hopefully cheaper, thus contributing to financial inclusion alongside...

Ignored

agree with you but I do not trust digital currencies If you lose your password, your digital currency will be destroyed. this case give to me low reliability about digital currency

Feb 14, 2021 9:17am — Edited

The explosion in Bitcoin is a way to get away from those mad as hatter central bank economists.
It's a store of value thats decentralised ,that you can take right out the system.It's finite.
Thats why they term it like gold.

Stable coin type as far as I'm aware is ideal to park digital ,but you need to be careful some are not covered 1 to 1 and they pre mine .

Dwindling cash will be the reason ,then customer protection bringing new laws the Government will want to control this market.The best case for Government is make banking all their own digital as pointed out .
Someone like Ross won't see it coming and lap up lower banking fees as the reason.

Feb 15, 2021 10:04am

Obviously in china they stranglehold any Liberty anyway ,this is the reason imo that they have gone so cashless with apps (I think government run anyway ) .They don't give two hoots about rights or liberty ,this is one of the main reasons they can do so well against the West.Add currency manipulation through the roof.
This is a country Ross tips his hat to regularly.
This is what's so laughable about EU wanting a level playing field with the Uk with the proximity being the reason.

The Banks are a problem to a crazy central banker. Also the pesky jobless not spending money .
A central bank can print all day long but the fail safe {not the best] would be a bank needs to be responsible or go possibly bust and Joe Blogs worries about his bills.
Imagine if the banks were not there and a government controlled the money totally.

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Feb 15, 2021 2:56am

Can anyone give me name of an Fx Broker that will allow me to open and MAINTAIN an Fx account DENOMINATED in Bitcoin... or Gold for that matter.. In the same way as we have $ and € denominated accounts. What spreads might I expect from trading such an account.

Feb 15, 2021 6:10am

Nicholas Kaldor said 50 years ago that ..dollar hegemony would turn "a nation of creative producers into a community of Rentiers increasingly living on others, seeking gratification in ever more useless consumption, with all the debilitating effects of the bread and circuses of imperial Rome."
Close? wouldnt you say?

Feb 15, 2021 7:50am

Quoting Steamroller

Disliked

I do not get the need for digital currencies? Your current account balance is not held in cash in some big vault, it is held in binary on some centralised server. What additional functionality are digital currencies going to provide? I also believe the issuer is the same (your national/supra-national central bank). So it just seems like a term to give the impression finance is evolving. Please enlighten me!

Ignored

Same q for me Steamroller. What is the difference between having a digital dollar account and an account at any financial institution? Where will it be? How will you spend a digital dollar? A debit card issued from the FED or the Treasury Dept? Or a chip embedded in your hand? That the answers to these q's are not transparent leaves me seeing no advantage.

Trader#9046

Feb 14, 2021 12:12pm

Quoting Bones

Disliked

The potential of this is to bring the government closer to money printer .The closer you are the more powerful and wealthy your be .Look up Cantillon Effect.

Ignored

Further to your link (thankyou, I missed that one), Mises had a neat essay about the Cantillon effect (it included some updated robust utility theory, from memory), sometime maybe about three to six months ago. If I had a spare day I could find it.

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Feb 13, 2021 10:44am — Edited

It's the complete opposite too Bitcoin ,
& very different, to the decentralised banking system.

Feb 15, 2021 10:38am — Edited

Quoting RossEdwards

Disliked

Nicholas Kaldor said 50 years ago that ..dollar hegemony would turn "a nation of creative producers into a community of Rentiers increasingly living on others, seeking gratification in ever more useless consumption, with all the debilitating effects of the bread and circuses of imperial Rome." Close? wouldnt you say?

Ignored

Well if that contention is correct then that's what Keynes desired, and his central planning proteges (government and central banks) have delivered it in spades - zero or negative real interest rates, wildly inflated asset prices, a mountain of debt and a world awash with fiat rubbish (trash, if American).

What you don't say is that Keynes used the posh French word rentier as a smear word for people who save and who maybe buys a bond or shares in a productive enterprise. In Keynes own words in his General Theory, this class of people ought to be euthanised.

"It will be, moreover, a great advantage of the order of events which I am advocating, that the euthanasia of the rentier, of the functionless investor, will be nothing sudden, merely a gradual but prolonged continuance of what we have seen recently in Great Britain, and will need no revolution." (Great Britain held a historical gold hegemony).

So transparently convenient for advocates of the putrid policies of Keynes and of other Cambridge economists who followed him, to gloat about the situation we find ourselves in without being honest about their true agenda - to yourself and those who read you.

{edit - normal people may conclude that the attributes of the "rentier" are in fact diametrically opposed to the disdain in which Keynes and yourself thought of them - his semantics between the saver (lender) and the capitalist (borrower) wear pretty thin}

Trader#85DC

Feb 13, 2021 2:26am

Quoting Steamroller

Disliked

I do not get the need for digital currencies? Your current account balance is not held in cash in some big vault, it is held in binary on some centralised server. What additional functionality are digital currencies going to provide? I also believe the issuer is the same (your national/supra-national central bank). So it just seems like a term to give the impression finance is evolving. Please enlighten me!

Ignored

If you like the convenience of carrying, or using, a credit card instead of cumbersome wads of cash you'll love digital currencies (not talking of crypto whatevers here too.) Can't wait to be rid of fat wallets

Feb 13, 2021 5:49am

We understand, Big Brother, oh wise one.

You can try to think of better lies, though. That one is just silly now.

Trader#60D1

Feb 15, 2021 3:13am

things are changing at a fast pace these days

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