Author Topic: CBDC - central bank digital currency coming  (Read 674 times)

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Offline hpjet

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CBDC - central bank digital currency coming
« on: March 11, 2022, 01:19:26 PM »
General Manager of Bank of International Settlements (BIS) talking about CBDC and how it will allow control over how currency is used by people.
https://twitter.com/1AmKa3/status/1502274891059453961


*BIS = "Established in 1930, the BIS is owned by 63 central banks, representing countries from around the world that together account for about 95% of world GDP."  https://www.bis.org/about/index.htm
« Last Edit: March 12, 2022, 04:39:38 PM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency
« Reply #1 on: March 11, 2022, 01:21:36 PM »
Biden’s Executive Order Calls for ‘Highest Urgency’ on CBDC Research and Development
https://www.coindesk.com/policy/2022/03/10/bidens-executive-order-calls-for-highest-urgency-on-cbdc-research-and-development/
« Last Edit: March 12, 2022, 04:40:16 PM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency
« Reply #2 on: March 11, 2022, 01:24:12 PM »
"If the results of this ‘development’ phase conclude that the case for CBDC is made, and that it is operationally and technologically robust, then the earliest date for launch of a UK CBDC would be in the second half of the decade. [so some time between 2025 and 2030.]"

https://www.bankofengland.co.uk/news/2021/november/statement-on-central-bank-digital-currency-next-steps
« Last Edit: March 11, 2022, 08:01:19 PM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency
« Reply #3 on: March 11, 2022, 01:29:37 PM »
"Central bank digital currency (CBDC) experiments are flourishing across the world, with the Bank for International Settlements estimating that 90% of central banks are currently researching CBDCs, running multiple concepts or starting pilots. Not satisfied with sitting on the sidelines of digital currency innovation, a private sector initiative called Project New Era recently launched a green paper, ‘A New Era for Money’, calling for greater collaboration between central banks, regulators, commercial banks and other financial institutions on a UK CBDC....Retail payments: enabling domestic payments to address card and account transfer inefficiencies, along with programmable payments."
https://www.thebanker.com/Editor-s-Blog/UK-private-sector-consortium-enters-the-CBDC-game


Use cases for programmability inherent in a digital currency:
1) Ability to monitor and prevent criminals from using their currency
2) Program a part of issued currency to be restricted to essential goods. (ex: Only allow welfare benefit payments to be used for food/essentials.)
3) Can control movement of people in times of climate lock downs or any other necessary restrictions of movement by restricting the radius within which a person can spend money.  (Ex:  You can only spend money within 5 miles radius of your home or your digital wallet will be disabled. Maybe your cell phone alerting you to a perimeter warning.)
4) Meat shortage coming due to climate change, can limit how much of your money can be used on meat.
5) Can use in conjunction with carbon points/tax.  Help regulate your carbon usage as tied to how you can use money.  (Ex:  Prevent people from flying if they already used up their carbon points, thereby helping to prevent climate change all for the greater good.  People may be able to buy/sell carbon points on the open market of some type - carbon market - to make extra cash or to purchase the privilege of more air travel.)
6)  Works well with digital ID/digital ration cards to designate how much of what a person can purchase, especially in times of shortages and to conform to climate change/carbon guidelines.
7)  The digital ID wallet can be disabled or currencies can be made to expire to help dissuade people from protesting or otherwise voice opinions that may not be in line with what is expected for the greater good. 
8 )  It can help prevent people from seeking the wrong information online that may agitate them.  Monthly subscription to certain sites or other online services can be stopped and any purchases of literature online may also be prevented or limited through the programmable nature of the currencies.
9)  Many more benefits for the currency issuer that will help them run things more smoothly and allow everyone to contribute and behave for the "greater good".
« Last Edit: March 17, 2022, 09:26:39 AM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #4 on: March 11, 2022, 07:48:36 PM »
"Bank of England to Ministers: Digital cash could be programmed to ensure it is only spent on "essentials"

"Digital cash could be programmed to ensure it is only spent on essentials, or goods which an employer or Government deems to be sensible... The Bank of England has called on ministers to decide whether a central bank digital currency should be “programmable”, ultimately giving the issuer control over how it is spent by the recipient."

https://www.telegraph.co.uk/business/2021/06/21/bank-england-tells-ministers-intervene-digital-currency-programming/"

https://www.talkirvine.com/index.php/topic,17625.0.html
« Last Edit: March 12, 2022, 03:19:56 PM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #5 on: March 12, 2022, 02:55:23 PM »
Many countries are on their way to adopting the CBDC:
https://cbdctracker.org/

Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #6 on: March 12, 2022, 03:07:27 PM »
Executive Order on Ensuring Responsible Development of Digital Assets:
"...to assess the optimal form of a United States CBDC, and to develop a strategic plan for Federal Reserve and broader United States Government action, as appropriate, that evaluates the necessary steps and requirements for the potential implementation and launch of a United States CBDC.  The Chairman of the Federal Reserve is also encouraged to evaluate the extent to which a United States CBDC, based on the potential design options [design options include whether currency is programmable or not], could enhance or impede the ability of monetary policy to function effectively as a critical macroeconomic stabilization tool."
https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/
« Last Edit: March 12, 2022, 03:18:09 PM by hpjet »

Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #7 on: March 14, 2022, 01:32:00 PM »
CBDC most likely to be digital ID/digital wallet based:
Two issues: 1) to prevent illicit activity, central banks may decide against anonymity (no privacy) and 2) to avoid the interest arbitrage, central banks may limit digital wallet balance and cap or cancel interest earned on CBDC.
"...central banks have imposed caps on balances, paid no interest on CBDC, or considered imposing a penalty interest rate on holdings above some threshold. To avoid facilitating illicit activity, central banks have mostly decided against fully anonymous accounts or capped anonymous transactions, and have tasked commercial bank intermediaries with monitoring customers and transactions."
https://www.ft.com/content/88f47c48-97fe-4df3-854e-0d404a3a5f9a

In the table (exhibit 4) in the article, it states that:
- "no country plans to adopt a CBDC that pays interest,
- Sweden is considering imposing a balance cap on wallets and potentially charging negative interest rates on CBDC, and
- In China digital wallets have balance caps and transaction limits."



Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #8 on: April 22, 2022, 03:04:24 PM »
"Starting in the fall of 2022, the city of Bologna [Italy] will begin a new pilot project. Citizens who display good behavior such as correctly recycling or using public transportation will be rewarded. The Bologna municipality is deploying a “Smart Citizen Wallet” which will be the primary method for citizens to collect digital coins in exchange for behavioral changes. Based on the given scores, a person can also receive discounts for local shops. The primary argument for this program is to 'save resources' and promote climate friendly behavior."
https://thenationalpulse.com/2022/04/22/a-social-credit-system-aimed-at-modifying-climate-change-behaviors-is-being-deployed-in-italy/

« Last Edit: April 22, 2022, 03:12:10 PM by hpjet »

Offline zovall

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Re: CBDC - central bank digital currency coming
« Reply #9 on: April 22, 2022, 07:41:02 PM »
Thanks for sharing these articles. This stuff is pretty creepy..

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Offline hpjet

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Re: CBDC - central bank digital currency coming
« Reply #10 on: June 17, 2022, 04:51:46 PM »
Fed Chair Powell:  "A US CBDC can potentially help maintain the dollar's international standing." Powell made these remarks at the "International Roles of the U.S. Dollar," a research conference sponsored by the Federal Reserve Board, Washington, DC on June 17, 2022 - see twitter link for video
https://twitter.com/disclosetv/status/1537832095602597890

« Last Edit: June 17, 2022, 05:02:04 PM by hpjet »

 

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