by With e-cash, any degree of privacy is an option, with any percentage of the system being allowed to operate with cash-like privacy an option, run by any degree of public/private mix. Maintaining physical notes and coins is an option. Public access to reserves combined with peer-to-peer giro payments, regardless of the privacy aspect, makes the payments function of banks redundant. Direct access to reserve accounts makes the savings function of banks and 100% safe treasury securities redundant. Holding reserve accounts with banks is a design option. Calling bank-loans “reserves” is an option. (A good overview of some issues: The Case for Digital Legal Tender 2017.) The only thing banks do that is not made redundant with CBDC and that the government generally does not do is underwrite
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model
Mike Norman writes The Accursed Tariffs — NeilW
Mike Norman writes IRS has agreed to share migrants’ tax information with ICE
Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius
With e-cash, any degree of privacy is an option, with any percentage of the system being allowed to operate with cash-like privacy an option, run by any degree of public/private mix. Maintaining physical notes and coins is an option.Check out Clint's site. There are many articles on MMT there.Public access to reserves combined with peer-to-peer giro payments, regardless of the privacy aspect, makes the payments function of banks redundant.
Direct access to reserve accounts makes the savings function of banks and 100% safe treasury securities redundant. Holding reserve accounts with banks is a design option. Calling bank-loans “reserves” is an option. (A good overview of some issues: The Case for Digital Legal Tender 2017.)
The only thing banks do that is not made redundant with CBDC and that the government generally does not do is underwrite private loans. (“Government Sponsored Enterprise” being a large exception; the “quasi” status of GSEs, as we will see, is problematic.)….
CBDC: The Power and the Profit