Byzantine on Nostr: i agree with the below definitions and this is why the CBDC is now here: "It’s a ...
i agree with the below definitions and this is why the CBDC is now here:
"It’s a digital currency issued by a central bank" --> the dollar is a liability of the US (fed) central bank
"Like paper currency, it represents a liability of the central bank"-> dollar is a liability of the Fed
"FedNow is just a service the Fed will be paid for" --> CBDC requires instant settlement and this the function of FedNow. The dollar (a CBDC) now runs on FedNow
"Also like paper currency, it’s a direct relationship between currency holders and the central bank" --> as seen in the last few weeks the Fed guarantees all bank deposits and so all deposit holders now have a direct relationship with the Fed even if it seems like it is a relationship with their bank
"It’s a digital currency issued by a central bank" --> the dollar is a liability of the US (fed) central bank
"Like paper currency, it represents a liability of the central bank"-> dollar is a liability of the Fed
"FedNow is just a service the Fed will be paid for" --> CBDC requires instant settlement and this the function of FedNow. The dollar (a CBDC) now runs on FedNow
"Also like paper currency, it’s a direct relationship between currency holders and the central bank" --> as seen in the last few weeks the Fed guarantees all bank deposits and so all deposit holders now have a direct relationship with the Fed even if it seems like it is a relationship with their bank
quoting nevent1q…g8vuIt’s a digital currency issued by a central bank. Like paper currency, it represents a liability of the central bank. FedNow is just a service the Fed will be paid for. Also like paper currency, it’s a direct relationship between currency holders and the central bank, unmediated by other banks. FedNow is a service for banks.