Difference between revisions of "Central bank/Digital currency"

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|text=We intend to establish the equivalence with cash and there is a huge difference there, for example '''in cash we don’t know who is using a 100 dollar bill today''' ... the key difference with the CBDC is that the central bank '''will have absolute control''' on the rules and regulations that will determine the use regarding that expression of central bank liability and also we will have the technology to enforce that.
 
|text=We intend to establish the equivalence with cash and there is a huge difference there, for example '''in cash we don’t know who is using a 100 dollar bill today''' ... the key difference with the CBDC is that the central bank '''will have absolute control''' on the rules and regulations that will determine the use regarding that expression of central bank liability and also we will have the technology to enforce that.
|subjects=blockchain, social control, Central bank digital currency
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|subjects=blockchain, social control, Central bank digital currency, Cryptocurrency
 
|date=October 2020
 
|date=October 2020
 
|authors=Agustín Carstens
 
|authors=Agustín Carstens
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Revision as of 13:48, 16 March 2022

Main.png Central bank/Digital currency 
(Social control,  Money/Creation)Rdf-entity.pngRdf-icon.png
Interest of"Smart city"

A central bank digital currency (CBDC) (also called digital fiat currency[1][2] is a digital currency issued by a central bank, rather than by a commercial bank. It will be implemented using a blockchain hosted on a single central server of a central bank.

Agustín Carstens, general manager of the Bank for International Settlements, explains the advantages of CBDCs

Problems

The General Manager of the Bank of International Settlements (BIS), Agustín Carstens, stated in October 2020 that:

“We intend to establish the equivalence with cash and there is a huge difference there, for example in cash we don’t know who is using a 100 dollar bill today ... the key difference with the CBDC is that the central bank will have absolute control on the rules and regulations that will determine the use regarding that expression of central bank liability and also we will have the technology to enforce that.”
Agustín Carstens (October 2020)  [3]

The emphasis is on social control; a global central authority could - based on automated, computerized decisions - decide who may buy what and when, based on compliance levels of citizens. Moreover automated punishments could be dished out. This would be a monetary revolution comparable to the 1913 Federal Reserve Act.


 

Related Quotations

PageQuoteAuthorDate
"Vaccine passport"“the ambition is huge; both in terms of scale – as it applies to all EU member states – and also in the power it would grant to citizens throughout the Bloc. For the first time, citizens would be able to use a European Digital Identity wallet, from their phone, that would give them access to services in any region across Europe....It gets really exciting when you realise that the wallet can host both digitalised identity and payment credentials. This could allow people, for example, to pay a deposit on a new apartment or settle an outstanding speeding fine directly from their smartphone.”
CBDC“We intend to establish the equivalence with cash and there is a huge difference there, for example in cash we don’t know who is using a 100 dollar bill today ... the key difference with the CBDC is that the central bank will have absolute control on the rules and regulations that will determine the use regarding that expression of central bank liability and also we will have the technology to enforce that.”Agustín CarstensOctober 2020
CBDC“[...] you know the digital euro is going to have a limited amount of control. There will be control, you're right, you're completely right. We are considering whether for very small amounts, you know, anything that is around 300, 400 Euros, we could have a mechanism where there is zero control. But that could be dangerous, the terrorist attacks on France, uh back, uh 10 years ago, were entirely financed by those very small anonymous credit cards that you can recharge in total anonymity.”Christine Lagarde16 March 2023
CBDC“CBDC can allow government agencies and private sector players to program, to create smart contracts, to allow targeted policy functions, e.g. welfare payments, e.g. consumption coupons, e.g. food stamps. By programming CBDC, those monies can be precisely targeted, for what kind of people can own and for what uses these monies can be utilized, e.g. for food. So this potential programmability can help government agencies to precisely target their support to those people who need support.”IMF
Bo Li
14 October 2022
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References


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