Comment by JumpCrisscross
3 years ago
> CBDCs are next
Nobody has seriously discussed a CBDC for months in the U.S. FedNow is the American financial system catching up to the 1990s. It has nothing to do with crypto beyond the cursory.
3 years ago
> CBDCs are next
Nobody has seriously discussed a CBDC for months in the U.S. FedNow is the American financial system catching up to the 1990s. It has nothing to do with crypto beyond the cursory.
Powell seriously discussed CBDC in his recent testimony to congress. He mentioned it was far off.
> Powell seriously discussed CBDC in his recent testimony to congress. He mentioned it was far off
It isn't being seriously discussed for implementation. The working groups are disbanded. The Fed won't write it off--they shouldn't. But CBDCs are as proximate as postal banking.
FedNow is the system that will give the USD some or all of the troublesome properties of a CBDC.
I can't begin to parse your comment.
Right now, you hold your money digitally with a bank. The bank holds its money digitally with the Fed. If your bank caught fire, the bank and its insurers would be responsible for getting you your money back.
A CBDC would mean cutting out the bank - you would hold your money digitally with the Fed, and the Fed would be liable for it.
FedNow creates a ledger that allows two banks holding their money digitally with the Fed make an instant transfer. You never become a direct customer of the Fed, but your bank and the bank of the person you're exchanging money with - both already Fed customers - have a quicker way to record the transfer.
The only relation between FedNow and a CBDC is that the Fed is involved, and, like, computers, I guess? Other than that, their mechanisms and effects have very little in common.