The Central Digital currencies will make monetary policy more difficult

LUCKMCFLY

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Quote from: oHnK on December 21, 2021, 10:48:35 AM

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country. However, China can indeed be considered a model for the follow-up to this great program. In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC. That should be avoided.

I agree with you, if we get to see China has a very good economy compared to any country, it is a country that survives because of its workforce, but the digital currency is totally FIAT and even if it uses blockchain technology it has a lot to do with it. See with everything that can be called crypto, for something they banned them, they made a big FUD to BTC and they still do it, this type of FUD before in 2017 was very relevant in the BTC market, not now, now it is more Likewise, in fact when there is fUD from China, it is most likely that the price of BTC will rise.

DrBeer

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Quote from: oHnK on December 21, 2021, 10:48:35 AM

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country. However, China can indeed be considered a model for the follow-up to this great program. In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC. That should be avoided.

Are you sure that this solution will not be centralized and controlled in reality. And a government-run China? And it will be as they want, and nothing to do with cryptocurrency, free and decentralized, CBDC did not have and does not have! Wherever you want to use CBDC, you will be forced to disclose your identity (Chinese banks and financial institutions do not work with anonymous accounts), any of your inappropriate behavior - and your account in CBDC will be blocked, and only the Chinese court will decide what to do next. Today China, unfortunately, chooses the path of totalitarianism and total control, and not only over its citizens.

jaberwock

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

anyone could potentially hold an account on a central bank skipping the intermediaries.

Quote from: paxmao on May 26, 2021, 06:24:20 AM

you would be holding an account with the original supplier as opposed to having to go through a retail bank.

What will happen when skipping the retail banker? Why those intermediaries are important against monetary policies for the case of CBDC? If it is all about central bank should not participant in banking services on CBDC means how right now they are also doing banking services with fiats without any major problems right now?

Quote from: avikz on May 26, 2021, 07:58:41 AM

There will be literally no difference in fiat and government issued digital currency.

This is what exact my understanding about CBDC. If governments need to alter their momentary polices just for the case of inducing CBDC, I guess most government will skip their idea of getting into digitalization of their fiats; which must be a positive news for cryptos.

redsun114

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

I am yet to fully understand what this central bank digital currency is all about and how it is going to work. OK I do understand that it is going to be paired with the Fiat currency, which means that both of them are going to have the same value, but what I’m Yet to understand is whether these central bank digital currencies are going to be a different currency/assets on their own that can be printed by the government at anytime and different from the fiat, or they would just be linked to the current Fiat that we are making use of now, meaning that every time one Fiat is printed, it is also represented in a digital form.

Although I don’t really see the need for these central bank digital currencies, because we already have means for doing transactions online, so it’s totally unnecessary, we have bank apps and we have PayPal, so what’s the need?

paxmao

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Quote from: oHnK on December 21, 2021, 10:48:35 AM

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country. However, China can indeed be considered a model for the follow-up to this great program. In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC. That should be avoided.

The problem with China is that information is never clear, so big problems may not really be that big and big successes are most of the time difficult to believe. The centrally issued currencies are absolutely terrible for privacy. The control of the issuing entities over who does what and when is nearly absolute. That, in Europe or US, may be a concern, but in China is simply a terrible problem as the CCP as clearly shown intent of controlling the individual micro-behaviour of individuals even by means of a "social credit" systems that require citizens to be "good and loyal".

oHnK

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The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country. However, China can indeed be considered a model for the follow-up to this great program. In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC. That should be avoided.

Ozero

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As far as I understand, we are talking about the digitized currencies of states, their stable coins of central banks. I do not think that their release will negatively affect the existing financial system and bring the onset of the global economic crisis closer. Such coins will be faster and more efficient and will be much more useful for the banking system and ordinary users. Soon we will be able to see this in practice, when states begin to put them into circulation on a massive scale.

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Quote from: semobo on November 23, 2021, 12:53:34 AM

It will make more easier for them in my opinion because the name of such tokens are CBDC means Central bank has the complete control and completely digitized money so they can print money simply and liquidate them into the people via banks but CBDC isn't supported by the most of the governments yet and I hope they won't because it will result into uncontrollable inflation rate at the time of economic crisis.

It is not that factual to say that CBDC will lead to uncontrollable inflation. That can happen because the government don't really keep checks on what they should do or what they need to do. Even fiat should lead to uncontrollable inflation if the government knows exactly how to go about controlling it so likewise the challenges of fiat may happen to CBDC and not just because it is digital currency then it is bad and will be facing uncontrollable inflation, the challenge is with government that don't do proper diligent work on her agencies in charge of different duties.

semobo

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It will make more easier for them in my opinion because the name of such tokens are CBDC means Central bank has the complete control and completely digitized money so they can print money simply and liquidate them into the people via banks but CBDC isn't supported by the most of the governments yet and I hope they won't because it will result into uncontrollable inflation rate at the time of economic crisis.

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Quote from: BrewMaster on May 27, 2021, 01:00:57 PM

Quote from: paxmao on May 25, 2021, 11:47:34 AM

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries.

not at all. there won't be even a tiny bit of difference between any new digital (crypto) currencies and the existing digital currencies run by the banking system. even the same laws would apply including the KYCs and who can and who can't open an account.

I do not think that the digitized currencies of the central banks of the states will somehow complicate their monetary policy. On the contrary, their digitized currencies will be more efficient in everything and the current global financial system will only benefit from this.
Stable coins of states will actually not differ from their usual currencies, including in terms of centralization. Digitized currencies will also be strictly regulated by central banks and, if necessary, digitized accounts will be blocked. There will be work efficiency, but nothing else will change.

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

Maybe some of us would think that it will somehow destroy the balance which will lead to having monetary policies getting messed up more. Banks, regardless if it is fiat or digital state currency, will still be under the government's control which means it is far from becoming a recognized cryptocurrency. We can call it digital money hence it is not the same with cryptocurrency. On the other hand, the imbalance caused by the innovation in the monetary system will surely face crisis at the beginning but sooner or later, things will get settled down and the balance will return as well as the peace with regards to the issue.

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

Sorry, I could not get your point; how CBDC will skip intermediaries but traditional fiat in electronic format will not? I mean in my understanding, all CBDCs are just digital version of what we have today in the name of fiats. So, could you explain more on by intermediaries, whom you are referring; which definitely will help me to interpret your point in more better way.

Quote from: paxmao on May 25, 2021, 11:47:34 AM

The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

That is the old problem of our governments and I guess that will not intensify just because of adoption of central digital currencies. I mean governments will keep printing more than their reserves even they delay adopting CBDC.

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Quote from: Kong Hey Pakboy on August 02, 2021, 02:55:11 AM

That's it's just the start, these people don't exactly know yet what exactly they should do before putting some sort of regulation on cryptocurrency and I don't think that we will ever see a good regulation this year for cryptocurrency because there's still a lot of things that these government have to learn and understand.

Digital currencies are inevitable but I truly agree with your sentiment. Most people in regulation sectors don't even know the fundamentals of cryptocurrency. Monetary policies have to be amended but would take herculean effort from the crypto community to lobby this in favor or just regulating but not halting the progressions or tax it heavily.

Kong Hey Pakboy

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That's it's just the start, these people don't exactly know yet what exactly they should do before putting some sort of regulation on cryptocurrency and I don't think that we will ever see a good regulation this year for cryptocurrency because there's still a lot of things that these government have to learn and understand.

davis196

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

I don't really think that the central bank digital currencies will make banks obsolete.
Someone will have to evaluate the customers,who want to borrow money.
The monetary policy of the big central banks is getting less and less effective mostly because of the negative interest rates and the increasing levels of globalization.
I don't think that fractional reserve banking will disappear due to CBDCs.Fractional reserve banking can be done with digital currencies."Money printing" can also be done with CBDCs.
I also think that "skipping the intermediaries",like you said,can have more pros than cons,but we still don't know what will happen.
What I don't like about CBDCs is that they are trying to imitate cryptocurrencies.

Argoo

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

The digitized currencies of the central banks of states are so called because they are issued by the central bank and all transactions will be under their control. Banks in this case will act as intermediaries and will be able to suspend or cancel any transaction.
Therefore, I do not think that the use of this digitized currency will complicate the work of the banking system. On the contrary, it will work more efficiently when using blockchain technology.

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Quote from: paxmao on May 25, 2021, 11:47:34 AM

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

I don't believe in any digital state currencies. They will still be regulated by the government. The main feature of digital money is decentralisation and uncontrollability from authorities, but digital euros, rubles, yuan will be under control, so it is the same as just non-cash money but on blockchain instead of bank account. And I don’t understand why you think that it will be impossible for the government to print money, it will also be easy for them.

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Monetary Policy needs to have control over the money supply as well as needs to support the economic growth. With the term central digital currency, it means they're are controlled by an authority. Someone please clarify it for me, if we're talking about the decentralized crypto then it'll be difficult for the government to make plans on emergency. Central digital currencies are being developed by the countries itself.

XUNing

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The digital currency issued by the central bank is still centralized, and it is supervised by the government. The government has complete control and can monitor bank accounts through the banking system.
But the issuance of digital currency may also promote the growth of the currency economy. People learn about the concept of digital currency and blockchain, and increase their awareness of this new thing, thereby attracting more people to invest in it.

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Quote from: Rruchi man on July 31, 2021, 10:46:51 AM

CBDCs are meant to compliment cash not replace it. What this means is that CBDCs could serve as a complementary means of payment that addresse market failures. In addition, there's a massive likelihood that it will help to speed up the continuous innovation and competition in payments, finance and commerce.

I second the first part of your post as I believe CBDC's aren't going to be launched in reaction to fiat currencies or to do away with paper money, they both will function in the same way, just one will be digital, whilst the other will be in paper form, they'll coexist with each other without much fuss cause the government controls the both of them, and that's exactly how they want it.

Having said that, I don't really believe CBDC's are being created cause of the desire for innovation, I believe this ideology is more directed towards competition, first competition against other economies launching CBDC's as well (like China v U.S.), and then competition against Bitcoin, though that's erroneous on the part of the government as Bitcoin is decentralized and operates differently from Bitcoin. Tbh, I don't really fancy the idea of CBDC's, most of the latest regulations and sanctions against Bitcoin is just to pave way for CBDC's. The thing is, the government would understand that in the long run Bitcoin wouldn't really be affected by most of their shady and selfish moves.

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