Tuesday, August 25, 2020

Central bank misunderstanding on digital currency

 Digital currency as envisioned by the Fed is a slightly better payment system. It is sort of a payment contract ready to go. Where is the gain? how is that better than visa/master charge?

It is based on block chain, a ledger, there is no bearer form of it. But the Swift ledger works fine, there is no need to switch to block chain.  I would hold off on making block chain dollars.

Right now, today, we can make bots that will share a single  business account, issuing passwords as needed. corporations essentially do that with travel accounts, relying on users to return receipts..

The applications you envision all demand secure identity. a valid signature on the ledger, with a send and receive money transaction channel.  Swift has all that.  Swift just need a bit more processor poop than current cards support. 

Bearer digital cash is a different animal, central banks need that to compete in shadow banking.  Central bankers are being deceptive about this.

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