I agree, it’s just my comment that you were responding to was not about getting rid of cash, it was about whether it made sense to switch the cash to a Digital currency.That's my point.
I'm not making a moral judgement but there'd no doubt be people who spend money on such things who wouldn't be at all happy with any kind of "paper trail" existing.
That's easily done with cash, there's no record of where the money went, but in the case of electronic payment it's hard to imagine no record of any sort is being created and especially not with a centralised government system.
For the average random individual that may be of no concern, but there are no doubt people who'd be extremely uncomfortable with the potential that someone else is able to find out the details of all their spending. Eg politicians, media people, celebrities, even someone like senior police or a school principal might not be too keen on having all their activity traceable.
I'm not passing a moral judgement there, personally I'm pretty broad minded, but I can see many having objections to the option for privacy being taken away.
Yeah, but won’t this digital currency just end up sitting in a digital vault some where, while all out transactions and loans etc continue to exist on ledgers of banks.It's slightly different in that a CBDC would be newly issued currency rather than existing currency in a digital form.
Lots of interesting resources at the below RBA link.
but will the embarrassment of using those services be shared around equallyI understand what you are saying about sex work and gambling, but this thread is about replacing the cash system with digital currency.
wouldn’t the digital currency leave a trail of the sex workers and gambling houses one has been using? Perhaps even a permanent public record?
That is the sort of Digital I was thinking about, where international trading between countries is concerned. I think I read once that there are several teirs of money, the stuff the public deals in, stuff the banks deal in and stuff that the World bank, IMF and international clearing houses deal in.It's slightly different in that a CBDC would be newly issued currency rather than existing currency in a digital form.
Lots of interesting resources at the below RBA link.
that is how i understand it , currentlyThat is the sort of Digital I was thinking about, where international trading between countries is concerned. I think I read once that there are several teirs of money, the stuff the public deals in, stuff the banks deal in and stuff that the World bank, IMF and international clearing houses deal in.
I tend to think as systems become more technically advanced, a central currency that tracks the GDP's of all countries and therefore adjusts each countries currency against a World standard, therefore the conversion rates are uniform and accurate in real time.that is how i understand it , currently
i don't know if you included SDRs ( Special Drawing Rights ) in that mix
that is why i thought BRICs would use a gold-backed CBDC for international trade settlements between ( BRICS ) member nations and keep control of their own local currencies
however i guess time will time what sort of mess they have concocted
the current problem is dozens of nations 'money print ' there are several running debt ratios of over 100% of GDP ( as shaky as GDP measurements can be ) if it were only Zimbabwe and Argentina the global economy would adjust but we are even talking about some G7 economies , while others are completely opaqueif a country money prints, its currency is devalued by a certain amount, much the same as a company that does a capital raising, its shares drop in value as there are more shares on issue.
Yep.That is the sort of Digital I was thinking about, where international trading between countries is concerned. I think I read once that there are several teirs of money, the stuff the public deals in, stuff the banks deal in and stuff that the World bank, IMF and international clearing houses deal in.
Yes very true, I was more talking about the issue China is having with the U.S regarding the U.S being the reserve currency and manipulating money markets.Yep.
Central banks deal in gold and issue cash to commercial banks.
Commercial banks deal in cash and issue bank credit to the public.
The public deals in bank credit.
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my point was that it doesn’t really matter whether the central banks issue physical cash or digital cash, either one will just be an asset that sits at the bank, and the public will just deal in bank credit.
There is lots of reserve currencies, even the Australian dollar is a reserve currency, but none come close to being as trusted or dominant at the USA.Yes very true, I was more talking about the issue China is having with the U.S regarding the U.S being the reserve currency and manipulating money markets.
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