I understand the appeal of a digital currency that is decentralized, like bitcoin. But why do we need a digital centralized currently. Isn’t it just money that moves digitally, which already exists? Why do we need to add anything to that? What am I missing? I feel like for this to make sense, the next logical step would be to get rid of all the cash, and I get the whole, make the world cashless so we can instantly control/monitor every flow, but is this really the only motivation/endgame?
What will be the difference between me depositing cash at a bank, having my balance update and then transferring it to someone via my banking app?
Is is that transfers will be faster bc the currency is actually always held at the central bank and accounts are just claims to it?
I am moderately pro-crypto (I feel like one of the few moderates left but that's another discussion...). But I don't really see the point in CBDCs. The main points around Crypto conflict with the main points around Central Banks
* Most CBs don't like Privacy, and many proposed CBDCs require you to have a single wallet and link it to your real life ID. That's less private than most bank accounts, so why bother for privacy reasons?
* Similarly CBDCs are centralised with the CB. They might use a decentalised blockchain etc, but you are completely reliant on the CB to actually convert to fiat. So again, why not just use fiat?
* You avoid the counterparty risk that come with (say) Tether, Circle etc. But you have a very similar risk with the central bank. Maybe the central bank are more trustworthy than the average stable coin operator (they are) but what happens when they decide to introduce a negative interest rate, haircut etc? At least other blockchains prevent that and traditional private bank accounts make it very difficult.
So what exactly is the point of a digital-euro beyond letting the ECB look like it's "down with the crypto kids" etc?
To me, this feels like another attempt to spy on citizens. Maybe not today, but having all transaction data forever in a database means that any time in the future, your perceived privacy of today can be made undone by doing a query of your date.
You do have something to hide, you just don't know it yet. Do you like phat ladies? Own a dog? Are left-leaning? Transacted with Mo?
Anything you do today could be a problem tomorrow!
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[ 0.77 ms ] story [ 21.4 ms ] threadWhat will be the difference between me depositing cash at a bank, having my balance update and then transferring it to someone via my banking app?
Is is that transfers will be faster bc the currency is actually always held at the central bank and accounts are just claims to it?
What is the point of CBDCs?
* Most CBs don't like Privacy, and many proposed CBDCs require you to have a single wallet and link it to your real life ID. That's less private than most bank accounts, so why bother for privacy reasons?
* Similarly CBDCs are centralised with the CB. They might use a decentalised blockchain etc, but you are completely reliant on the CB to actually convert to fiat. So again, why not just use fiat?
* You avoid the counterparty risk that come with (say) Tether, Circle etc. But you have a very similar risk with the central bank. Maybe the central bank are more trustworthy than the average stable coin operator (they are) but what happens when they decide to introduce a negative interest rate, haircut etc? At least other blockchains prevent that and traditional private bank accounts make it very difficult.
So what exactly is the point of a digital-euro beyond letting the ECB look like it's "down with the crypto kids" etc?
You do have something to hide, you just don't know it yet. Do you like phat ladies? Own a dog? Are left-leaning? Transacted with Mo?
Anything you do today could be a problem tomorrow!
See also: https://wikiless.org/wiki/1943_bombing_of_the_Amsterdam_civi...