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U.S.-issued Digital Dollar?
CaptHenway
Posts: 34,203 ✭✭✭✭✭
Professional Numismatist, Retired. 55 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Winner of the PNG's 2026 Robert Friedberg Award for "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
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Oh no.
Oh Yeah?
Take This!
https://www.cnbc.com/2021/02/22/yellen-sounds-warning-about-extremely-inefficient-bitcoin.html
This is what happens when you allow private banks acting within a hybrid private-government institution to control your currency. The government couldn’t handle the Affordable Care Act website; now it is going to create digital currency? 😂
No comment... don't want to get banned!
Aren’t they all digital already?
Seriously, how may dollars of your annual salary do you actually see?
This is so you can be easily financially cancelled. It's about control.
I could see every one of them if I wanted.
Exactly what I was going to post. Not only inevitable I think it will begin a trend towards disallowing other cryptocurrencies from general trade/tender status in the US.
I have a large change jar that is almost full. But, I have not added to it in years. I use my credit or debit card 99% of the time now... barely ever spend actual cash. I miss looking through the coins when I get change back... but the convenience of using a card is why I do it. Plus, I get 2% cashback (digital cashback, I guess) for using my credit card.
What are you going to do during a brown out or longer power outage? Hungry? Too bad for you. Look at LA (selective outages when grid over stressed) and Texas as case studies. No thanks.
No doubt the fed will proceed to develop the underpinnings of crypto for national usage.
But you can bet the forces that protect the current banking system will be involved. Huge special interests and lobbyists will deploy gigantic dollars to make sure US crypto is delayed and limited.
FIGHT....FIGHT...!!
I don't get this. We already have digital dollars. My salary is deposited into my bank account, I buy something on my credit card, I pay my credit card via direct transfer to my card company. It's all digital. Yes, I can walk into my bank and get a withdrawal and see paper money or coins, but why do that?
The government already can observe my transactions, and bank is required to report transactions over a certain dollar amount. Bitcoin avoids the scrutiny, I get that. What I don't understand is the benefit of government-sponsored cryptocurrencies for the US Govt. If you're Venezuela and you need speculators to buy your new fiat currency, that's different.
Fiat crypto is no different from the fiat we already have. The objections to govt-sponsored fiat crypto are the same to the objections to the current financial system. This feels like a solution in search of a problem.
Successful BST (me as buyer) with: Collectorcoins, PipestonePete, JasonRiffeRareCoins
Well, at my age, I believe I will continue to use cash, and likely never see the 'new' digital dollar.... Sure, I know about the digital CC/bank etc. connection....and use it sometimes - especially for internet transactions. I like getting change to look at... and I like 'spending' real money.
We 'old farts' are a bit set in our ways.... 
Cheers, RickO
Just because I don't USE cash doesn't mean I don't HAVE cash..... And anyways, you should still be able to go to the bank and withdraw cash if you don't keep it on hand. And if you can't go to the bank and get your cash, I doubt places will be open where you can spend it anyways.
I'm All for a United States created digital dollar. The world is looking for digital dollars to combat the physical USD. Either the U.S. gets out in front or they will have to follow.
Better to lead, than follow...
I don’t think that will matter
Most tellers couldn’t figure out how to give you change on their own. Without cash there won’t be a cash register and they won’t be allowed to take physical money for ‘Safety’ reasons.
This is gonna put a lot of stickup guys out of work.
I have credit cards, but they don't see much use. I like to reach in my pocket and pull out what looks like a head of cabbage. If I don't have at least 4 or 5 hundred bucks in my pocket I feel like the emperor with no clothes.
A digital dollar is a digital currency that uses a distributed ledger technology to function. This electronic unit of dollar value is redeemable from an eligible financial institution. A distributed ledger can be described as a ledger of any transactions or contracts maintained in decentralized form across different locations and people.
The need for a central authority to keep a check against manipulation is eliminated by the use of a distributed ledger.
Underlying distributed ledgers is the same technology that is used by blockchain, which bitcoin uses for its distributed ledger. Blockchain organizes data into blocks, which are chained together, in an append only mode.
Distributed ledger technology (DLT) could fundamentally change the financial sector, making it more efficient, resilient and reliable. Janet Yellen as Treasury Secretary suggested that a digital central currency could help make payments faster, safer and cheaper, and that it allows payments to be made to people without bank accounts or credit cards for Covid-19 relief.
The issues of delayed settlements for financial transactions like may have happened with the GameStop stock trading issues recently at Robinhood, would be eliminated with instant financial transactions.
Cyber attacks and financial fraud are also reduced by the use of distributed ledgers. There is a chance DLT will be used in the future for voting, property transaction, or tax collection. It might even reduce CC and Paypal transaction fees that are currently 2-3%, to under 1%.
It seems like the digital dollar is not only inevitable, but that it is needed.
My US Mint Commemorative Medal Set
I've yet to hear a convincing argument against it.
"What about emergencies?!" - Covid has taught us the age old wisdom of physical currency-gold and silver- being a hedge against market turbulence is false. As is this threat in regard to having physical cash in case of electronic outages. Businesses are not open when these sorts of emergencies occur. Cash or not cash, you're not getting food and water.
Minor Variety Trade dollar's with chop marks set:
More Than It's Chopped Up To Be
oops
BHNC #248 … 140 and counting.
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This has me thinking about all the Sci-Fi shows. Many technologies from those come to be.
That being said, I've got a few grand that hasn't seen the light of day since Covid started. Must have been the last coin show I set up at...last August that I used any cash. I can't even remember the last time I spent any cash outside a coin show. That's not saying I'm on board with going all digital.
Cash still comes in handy though
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date
They could always retrain as computer hackers.
Consumers prefer to use credit cards because of the 1-2% bonus. Vendors who chose not to accept cards and absorb the CC fee almost always accept ACH transfers, which are free. Direct, bank to bank ACH transfers seem to be the big 800 lb gorilla that digital needs to take down if it's going to become the preferred mode of payment.
We got about 8-9 inches of snow last night. Cash will have it shoveled by Noon.
coin shortage a trial run? LOL
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
The digital dollar concept is not currently intended to replace the dollar, cash, or other crypto, but to supplement them.
Keeping some cash and coins is still recommended in case of other issues.
Bermuda now has the "digital sand dollar" can be used for transactions there in conjunction with Mastercard and their Central Bank available on a card.
https://tinyurl.com/3n2kym6b
My US Mint Commemorative Medal Set
It is not Burmuda's digital sand dollar, but to keep this a coin discussion here is a picture.
My US Mint Commemorative Medal Set
You currently have numerous digital avenues with your money and at the same time have the freedom to remove it from your bank when and if you so desire. Technology continues to increase these digital options without taking away your ability to choose cash. Central banks see a Central Bank Digital Currency (CBDC) as an initial step to eliminating cash. This is a world wide effort supported and endorsed by the International Monetary Fund (IMF) and the World Bank. They have good reason to desire the elimination of cash:
Once cash is no longer in use, you can easily be forced to spend when you are faced with negative interest rates on your CBDC account, the only place you can store your money. You will no longer have the mattress vs. bank option. It provides a tool for central banks to throttle both inflation and money velocity. Increased money velocity increases tax revenues. Negative interest rates are a tax on your savings. Do you want to give up the option of not paying your "bank" to hold your money?
Without the ability to hold your cash in your hand you can easily be denied access to it if you, for any reason, do not conform/comply. We are already witnessing this with social media access and job security. We have seen "undesirable" yet completely legal businesses denied access to Paypal and other digital payment processors.
It ultimately is about financial and personal freedom. The removal of choice always reduces one's freedom.
Digital currency discussion at the Precious Metal forum.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
With the ability of bad actors to interfere with other segments of American society just imagine their efforts if money is involved? This seems like a good idea but this thought should stop us in our tracks.
Not from my regular guy you couldn’t.
Dispensaries only take greenbacks.
Nothing wrong with a national digital currency. . . as long as it is not the only currency.
"Money does not care about speeches on morality. Capital asks whether the rules will remain the same tomorrow. With inflation, people assume price is the problem, and propose regulation—but price is simply the message." - Martin Armstrong
Traceability is a big deal. Cash, Crypto, Debit, Credit, Gold, Silver etc.
Whatever. I've learned that I only get one vote and my sphere of influence is pretty limited. Control what you can and let the word go its merry way.
Still, it's going to be hard to slab these.
yolo
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