This may be a bit Orwellian, but imagine getting forced to accept your paycheck in digital dollars that had a negative yield attached to them? The government (read; the IRS) would know exactly what you were paid and when you were paid and the digital payment would erode over time if you kept it in your savings account vs. spent it on goods and services. This would force folks to pump their savings back into the economy to drive spending and would likely significantly encourage people to take out loans for purchases instead of building up savings for those purposes. The loans then, of course, would generate interest income for those banks that lend out the money...
@TomB said:
This may be a bit Orwellian, but imagine getting forced to accept your paycheck in digital dollars that had a negative yield attached to them? The government (read; the IRS) would know exactly what you were paid and when you were paid and the digital payment would erode over time if you kept it in your savings account vs. spent it on goods and services. This would force folks to pump their savings back into the economy to drive spending and would likely significantly encourage people to take out loans for purchases instead of building up savings for those purposes. The loans then, of course, would generate interest income for those banks that lend out the money...
Isn’t that direct deposit? I don’t get an actual check, it goes right into my bank account with not a negative yield, but as close as you can get to one.
OP is referring to digital dollars that are intended to completely replace physical dollars. For now paper dollars can be transferred digitally. Your new digital dollar bank account would replace your paper dollar bank accounts and be held by the Federal Reserve who can throttle inflation and the velocity of money (increases tax revenues) by giving you the option of spending now or paying a negative interest rate to wait and spend later. Digital dollars remove your ability to choose to keep your money under the mattress in times of negative rates or economic uncertainty. These digital dollar accounts can force "acceptable" social behavior upon the account holder. We have already seen payment processor Paypal lock out undesirables such as firearms dealers from accessing their funds.
However, the real bombshell in the OP's article is found in the first paragraph: "The Federal Reserve Board said $2.05 Trillion Federal Reserve notes were in circulation. Yet this is only a little bit more than 10% of the total money supply. The rest is in the form of checking deposits, savings deposits and money market securities."
Think about this for a moment. Almost 90% of the money supply is imaginary. This exposes the financial system for the pyramid scheme it really is. And they can be trusted with truly imaginary digital dollars? lol
@TomB said:
This may be a bit Orwellian, but imagine getting forced to accept your paycheck in digital dollars that had a negative yield attached to them? The government (read; the IRS) would know exactly what you were paid and when you were paid and the digital payment would erode over time if you kept it in your savings account vs. spent it on goods and services. This would force folks to pump their savings back into the economy to drive spending and would likely significantly encourage people to take out loans for purchases instead of building up savings for those purposes. The loans then, of course, would generate interest income for those banks that lend out the money...
With strictly digital dollars all banks would likely become payday loan operations. There would be no need for banks. Imagine having to call the Federal Reserve about an error in you bank statement. lol
Is it just me or did not someone mention something like this would happen 2000 years ago. Was there not suppose to be also a global plague aka one of the 4 horsemen as well. And was not that virus wearing a crown. Funny how covid has that look.
Revelations 13:
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
Interest: Latin American history with an emphasis on colonial Mexico & Peru
@KingOfMorganDollar said:
Is it just me or did not someone mention something like this would happen 2000 years ago. Was there not suppose to be also a global plague aka one of the 4 horsemen as well. And was not that virus wearing a crown. Funny how covid has that look.
Revelations 13:
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
I know funny funny funny.
Interest: Latin American history with an emphasis on colonial Mexico & Peru
There is, not surprisingly, considerable confusion about what digital currency means.
We of course already have vast quantities of money that is represented by nothing other than an electronic ledger. (the classic example is our checking account). The Fed can already create money electronically with a few keystrokes. A credit card allows money to change hands electronically.
The key point is that all of these records/payments exist within the banking system.
The key point about digital currency (whether it is bitcoin or some future dollar sponsored by the Fed) is that this currency exists independent of the banking system. It is not linked to an account, and payments can be made without transactions going through the banking payment process. If I pay for something with a credit card, a bank is involved. If I pay for something with bitcoin (or with crisp hundreds), no bank is involved.
This should also be the case with a digital dollar. Payment processing should parallel that of paper money rather than credit cards. As @TomB mentioned, compared to traditional money, a digital dollar would be subject to greater control and potential abuse, which should be a major concern for all of us. (regardless of our political leanings) We should work to assure that legislation authorizing a digital dollar explicitly prohibits embedded depreciation.
"China’s version of a digital currency is controlled by its central bank, which will issue the new electronic money. It is expected to give China’s government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin’s major draws: anonymity for the user."
“The money itself is programmable. Beijing has tested expiration dates to encourage users to spend it quickly, for times when the economy needs a jump-start.
“It is expected to give China’s government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin’s major draws: anonymity for the user.”
With these features, it is hard to believe it will get much traction in the free world. Nonetheless, a somewhat scary glimpse into the future.
Kudbegud
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Not the Coin World article, but there was some discussion about this recently in another thread: https://forums.collectors.com/discussion/comment/12855436#Comment_12855436
Nothing is as expensive as free money.
This may be a bit Orwellian, but imagine getting forced to accept your paycheck in digital dollars that had a negative yield attached to them? The government (read; the IRS) would know exactly what you were paid and when you were paid and the digital payment would erode over time if you kept it in your savings account vs. spent it on goods and services. This would force folks to pump their savings back into the economy to drive spending and would likely significantly encourage people to take out loans for purchases instead of building up savings for those purposes. The loans then, of course, would generate interest income for those banks that lend out the money...
In honor of the memory of Cpl. Michael E. Thompson
Thanks. I looked back but missed this discussion.
I’ve heard crazier ideas than that!
Only if it can be done with PC imagery. That shouldn't be a problem so probably yes. It's coming.
Isn’t that what credit cards are for - digital dollars?
Isn’t that direct deposit? I don’t get an actual check, it goes right into my bank account with not a negative yield, but as close as you can get to one.
I'm hoping not!
I’m hoping Yes!
OP is referring to digital dollars that are intended to completely replace physical dollars. For now paper dollars can be transferred digitally. Your new digital dollar bank account would replace your paper dollar bank accounts and be held by the Federal Reserve who can throttle inflation and the velocity of money (increases tax revenues) by giving you the option of spending now or paying a negative interest rate to wait and spend later. Digital dollars remove your ability to choose to keep your money under the mattress in times of negative rates or economic uncertainty. These digital dollar accounts can force "acceptable" social behavior upon the account holder. We have already seen payment processor Paypal lock out undesirables such as firearms dealers from accessing their funds.
However, the real bombshell in the OP's article is found in the first paragraph: "The Federal Reserve Board said $2.05 Trillion Federal Reserve notes were in circulation. Yet this is only a little bit more than 10% of the total money supply. The rest is in the form of checking deposits, savings deposits and money market securities."
Think about this for a moment. Almost 90% of the money supply is imaginary. This exposes the financial system for the pyramid scheme it really is. And they can be trusted with truly imaginary digital dollars? lol
It will happen suddenly
With strictly digital dollars all banks would likely become payday loan operations. There would be no need for banks. Imagine having to call the Federal Reserve about an error in you bank statement. lol
It will happen suddenly
Is it just me or did not someone mention something like this would happen 2000 years ago. Was there not suppose to be also a global plague aka one of the 4 horsemen as well. And was not that virus wearing a crown. Funny how covid has that look.
Revelations 13:
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
Interest: Latin American history with an emphasis on colonial Mexico & Peru
Sports: NHL & NFL
Thank you Lord for another beautiful day!!!
NWO aka New World Order
Out of chaos there shall be order. Is that not their motto.
Interest: Latin American history with an emphasis on colonial Mexico & Peru
Sports: NHL & NFL
Thank you Lord for another beautiful day!!!
I know funny funny funny.
Interest: Latin American history with an emphasis on colonial Mexico & Peru
Sports: NHL & NFL
Thank you Lord for another beautiful day!!!
Barter will become a major form of goods transfer.... It will come, and it will be untraceable.... Cheers, RickO
Bye bye bitcoin...
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
There is, not surprisingly, considerable confusion about what digital currency means.
We of course already have vast quantities of money that is represented by nothing other than an electronic ledger. (the classic example is our checking account). The Fed can already create money electronically with a few keystrokes. A credit card allows money to change hands electronically.
The key point is that all of these records/payments exist within the banking system.
The key point about digital currency (whether it is bitcoin or some future dollar sponsored by the Fed) is that this currency exists independent of the banking system. It is not linked to an account, and payments can be made without transactions going through the banking payment process. If I pay for something with a credit card, a bank is involved. If I pay for something with bitcoin (or with crisp hundreds), no bank is involved.
This should also be the case with a digital dollar. Payment processing should parallel that of paper money rather than credit cards. As @TomB mentioned, compared to traditional money, a digital dollar would be subject to greater control and potential abuse, which should be a major concern for all of us. (regardless of our political leanings) We should work to assure that legislation authorizing a digital dollar explicitly prohibits embedded depreciation.
China Creates Its Own Digital Currency, a First for Major Economy
"China’s version of a digital currency is controlled by its central bank, which will issue the new electronic money. It is expected to give China’s government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin’s major draws: anonymity for the user."
It will happen suddenly
@derryb:
A few choice quotes from the WSJ article:
“The money itself is programmable. Beijing has tested expiration dates to encourage users to spend it quickly, for times when the economy needs a jump-start.
“It is expected to give China’s government vast new tools to monitor both its economy and its people. By design, the digital yuan will negate one of bitcoin’s major draws: anonymity for the user.”
With these features, it is hard to believe it will get much traction in the free world. Nonetheless, a somewhat scary glimpse into the future.