RED ALERT! The Fed Just Asked for OUR Feedback on a Central Bank Digital Currency (CBDC). TELL THEM NOOO!!!!!!
(www.youtube.com)
👀 EYES ON! 👀
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Potential Risks and Policy Considerations for a CBDC
Changes to Financial-Sector and Market Structure
Safety and Stability of the Financial System
CBDCs would be particularly attractive to risk-averse users. One concern, however is that the quick-conversion ability of CBDCs could actually make runs on financial firms more likely or more severe and traditional measures may not prevent such an occurrence.
Design could potentially mitigate this through features such as limiting the total amount of CBDC that can be held or accumulated over short periods.
My note: This seems like a tricky one, on one hand I get the idea that a run on the banking system is limited today by transaction speed and throughput and the fact that the instantaneous finality of a good CBDC could exacerbate things, limiting the amount that one entity can hold or accumulate in a short period of time seems like a kludgy fix that would do more harm than good. I think I will craft a question on this topic as well to submit.
Efficacy of Monetary Policy Implementation
The design of any CBDC would be important. The existing system relies mostly on interest rates to drive policy. Controlling the supply of a CBDC will be fundamentally different than it is with the reserves the Fed currently holds. For example, a surge in demand could deplete the reserves enough to put upward pressure on interest rates. The effect is exacerbated if the CBDC is interest bearing itself and will impact other markets.
The Fed is doing a large amount of research specifically in the area of how to properly manage a CBDC to reach their macroeconomic objectives and this is an area that they expect a lot of new information over time.
Privacy and Data Protection and the Prevention of Financial Crimes
On consumer privacy they just state that intermediaries would be left to address privacy concerns using existing tools. (My note: It does not sound like they really care about privacy in that case) On prevention of financial crimes they note existing reporting requirements (KYC) and will offer the advantage of these existing programs.
Operational Resilience and Cybersecurity
Securing the network is a difficult but important goal. They note the key concern of additional entry points to the system making it potentially more vulnerable than the existing central bank system. They also address a desire to explore the feasibility of an “offline” payment system.
SEEKING COMMENTS AND NEXT STEPS
They reiterate here that there is not a current effort to create a CBDC but will only work towards that goal if it will provide a benefit to the US economy that exceeds the downsides and again, only with support from the executive and legislative branches.
There is a list of questions that they are asking for public comment on as well. You can provide answers to their questions at the same web address linked above for asking questions: https://www.federalreserve.gov/apps/forms/cbdc. Here are the questions:
CBDC Benefits, Risks, and Policy Considerations
What additional potential benefits, policy considerations, or risks of a CBDC may exist that have not been raised in this paper?
Could some or all of the potential benefits of a CBDC be better achieved in a different way?
Could a CBDC affect financial inclusion? Would the net effect be positive or negative for inclusion?
How might a U.S. CBDC affect the Federal Reserve’s ability to effectively implement monetary policy in the pursuit of its maximum-employment and price-stability goals?
How could a CBDC affect financial stability? Would the net effect be positive or negative for stability?
Could a CBDC adversely affect the financial sector? How might a CBDC affect the financial sector differently from stablecoins or other nonbank money?
What tools could be considered to mitigate any adverse impact of CBDC on the financial sector? Would some of these tools diminish the potential benefits of a CBDC?
If cash usage declines, is it important to preserve the general public’s access to a form of central bank money that can be used widely for payments?
How might domestic and cross-border digital payments evolve in the absence of a U.S. CBDC?
How should decisions by other large economy nations to issue CBDCs influence the decision whether the United States should do so?
Are there additional ways to manage potential risks associated with CBDC that were not raised in this paper?
How could a CBDC provide privacy to consumers without providing complete anonymity and facilitating illicit financial activity?
How could a CBDC be designed to foster operational and cyber resiliency? What operational or cyber risks might be unavoidable?
Should a CBDC be legal tender?
CBDC Design
Should a CBDC pay interest? If so, why and how? If not, why not?
Should the amount of CBDC held by a single end user be subject to quantity limits?
What types of firms should serve as intermediaries for CBDC? What should be the role and regulatory structure for these intermediaries?
Should a CBDC have “offline” capabilities? If so, how might that be achieved?
Should a CBDC be designed to maximize ease of use and acceptance at the point of sale? If so, how?
How could a CBDC be designed to achieve transferability across multiple payment platforms? Would new technology or technical standards be needed?
How might future technological innovations affect design and policy choices related to CBDC?
Are there additional design principles that should be considered? Are there tradeoffs around any of the identified design principles, especially in trying to achieve the potential benefits of a CBDC?
I filled out the form and said there will be no "benefit" from the CBDC and it will become a political tool for establishing public policy and oppressing anyone disagreeing with it. The American public has already experienced this from the current banking system. The public is vehemently opposed to any CCP-style social credit system and will recognize the CBDC as such. NO CBDC.
They'll file that right into: Will work as intended for our slave master overlords.
NOTE: The Feds don't explicitly state that the ledger would be public. That may be what they are alluding to when they reference privacy concerns. I'm not sure what it looks like if it's not public though as 24/7 transactions between nonbank financial providers would need some way of being able to verify that the money was really in the wallet they were connected to.
They don't explicitly state a blockchain to be used. They do.state digital wallets that everyone will use.
The CBDC is so that the corrupt bankers can still steal behind closed doors while also having even more control over everyone else's wallets
Intense rundown Cuke. I'm heavily into crypto last 6 years, and this is anti-crypto pure evil but that's expected considering the source and these times we're living in. Full control over lives, a big part of Tribulations. All freedom gone, zilch. For those who don't understand crypto, it's purpose is DECENTRALIZATION from these banksters and their system. It's early and without writing a tome I'll leave it there.
Many people on this site just don't understand that crypto is meant to free you from the banks. Also they can't tell the difference between Bitcoin and other cryptos.
I just want my normal life. Paper currency and coins. That’s it. We need our President DJT
Thinkin of getting a KD-Box but I think they're backordered. Kadena is my focus these days. I used to digg LINK & DOT, but KDA shows major promise by end '22..
https://www.reddit.com/r/kadena/comments/s50xbx/kdbox_solo_mining_got_one_coin_after_an_hour/?utm_source=share&utm_medium=web2x&context=3
Well, we're not here for that. It would be fun to write lessons, but this isn't the place. If people showed interest?