fred on Nostr: I saw a post about cash vs charge (which could be applied to CBDC) A man pays $100 ...
I saw a post about cash vs charge (which could be applied to CBDC)
A man pays $100 cash for a mechanic to fix his car. The mechanic uses the $100 bill to pay a painter to paint his fence. The painter uses the $100 to his dentist for a cleaning. The dentist uses the $100 bill pay a handyman to fix his broken window. At the end of the week the $100 has passed through 10 people’s hands and is now $100 in the grocery’s register.
But if everyone charged $100 to pay for services the credit card company would take 3% every time. After 10 transactions they would have $30 just from the $100 moving around society. That $30 is stolen from the $100.
A man pays $100 cash for a mechanic to fix his car. The mechanic uses the $100 bill to pay a painter to paint his fence. The painter uses the $100 to his dentist for a cleaning. The dentist uses the $100 bill pay a handyman to fix his broken window. At the end of the week the $100 has passed through 10 people’s hands and is now $100 in the grocery’s register.
But if everyone charged $100 to pay for services the credit card company would take 3% every time. After 10 transactions they would have $30 just from the $100 moving around society. That $30 is stolen from the $100.