Can someone tell me what the fuck a Central Bank Digital Currency is? via /r/wallstreetbets #stocks #wallstreetbets #investing


Can someone tell me what the fuck a Central Bank Digital Currency is?

Last week the Fed released this paper Money and Payments: The U.S. Dollar in the Age of Digital Transformation proposing a digital currency for the US.

I skimmed most of it and from what I can tell this isn’t some kind of retarded stablecoin with public/private keys that lives on a blockchain or something. But if that’s not it, I have so many questions, the biggest one how is any fucking different from what we have today? Actual cash only comprises about 10% of M2 which means the rest is digital and some number in some database. Most of our money is already digital so no change there.

Also how would transactions work? Who would settle them? Is it possible to lose your CBDC notes ? What if I want to reverse a payment? Or what happens when someone robs you at gunpoint can they steal the digital cash you have on your?

I don’t understand the point and I can’t tell if this idea is dumb or if I’m dumb

Submitted January 28, 2022 at 04:36AM by lowkey-zealous
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