The Fed’s Plan To End Money | CBDC | What You Need To Know.
CBDC stands for Central Bank Digital Currency. It is a digital form of a country’s fiat currency that is issued and regulated by the central bank. CBDCs are intended to be a digital representation of the traditional currency, allowing for electronic transactions and payments while being backed by the central bank’s authority and monetary policy.
A CBDC system could potentially compromise individual privacy, as transactions would be recorded and monitored by the central bank. This level of surveillance could raise concerns about the misuse of personal financial data or the risk of governments gaining too much control over citizens’ financial activities.
Introducing CBDCs could disrupt the existing financial system and present risks to financial stability if not implemented and regulated carefully. Issues such as bank runs or destabilizing shifts in capital flows might arise, and the central bank would need to navigate these challenges to ensure the smooth functioning of the economy.
Not everyone may have equal access to digital technologies required for CBDC use, potentially excluding certain segments of the population, particularly those in remote or underprivileged areas. This could exacerbate existing economic inequalities.
A digital currency system is vulnerable to cyber-attacks, and a successful attack on a CBDC could have far-reaching consequences for a country’s financial system and economy.
CBDCs could reduce the role of commercial banks, leading to potential disintermediation and affecting their ability to provide loans and financial services to the public.
Implementing CBDCs would require central banks to strike a balance between ensuring financial stability and implementing effective monetary policies. The complexities involved in managing money supply, interest rates, and exchange rates in a digital currency ecosystem could be challenging.
The introduction of CBDCs could have geopolitical implications, affecting cross-border transactions and potentially challenging the global dominance of certain currencies like the US dollar.
Speaker Gregg Reese
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The uk is almost there in terms of cashless society. The town im from majority of bussinesses don't accept cash now so card is the only option. All my family and friends barely carry cash anymore, its already in motion. Lockdown has sped up the process massively.
Better learn to decentralize!!!!!
Digital currency would be much easier to counterfeit.
i wont ware a mask n im not being n lock down u way over board