Tag: CBDC

Posted on

Central bank digital currencies: Is coining the money the same as digitizing the money?

If converting the analog representation of currency, i.e., a coin or banknote, into discrete units of data (bits) that can be separately addressed (identified or designated) can provide the American public with a financial system it can still have confidence in while maintaining the legitimacy of the government, then Congress could expand on the definition of coining money to include the digitization of money. Continue reading Central bank digital currencies: Is coining the money the same as digitizing the money?

Posted on

Interbank Market News Scan: Central bank digital currencies are likely more about efficiently changing the money supply.

The Federal Reserve’s intent around central bank digital currency is to create a direct and efficient way to manipulate money supply. A programmable digital currency that regulates spending via some algorithm or all out reduces dollar amounts in accounts again by some algorithm would save the Federal Open Market Committee two days of hair pulling decisions. CBDCs would amount to their unique version of ChatGPT, an artificial monetary policy environment that reduces the FOMC’s role to monitoring and advising versus direct policy action. Continue reading Interbank Market News Scan: Central bank digital currencies are likely more about efficiently changing the money supply.