CBDCs: Financial Exclusion

Karlysymon

Superstar
Joined
Mar 18, 2017
Messages
6,068

I just found it curious that the very same western gov'ts feverishly pushing for a digital ID are somehow taking a relaxed approach to cbdcs, according to this guy on Bloomberg. So what gives?
 

Karlysymon

Superstar
Joined
Mar 18, 2017
Messages
6,068

"Not all transactions are affected, as The Media Line explains:

There are some exemptions to the new law: charitable institutions, which are most common in ultra-Orthodox society; and trade with Palestinians from the West Bank, who are not citizens of Israel. In the case of the latter, deals including large amounts of cash will be allowed, yet they will require a detailed report to Israel’s Tax Authority.
However, in Israel's phased approach to eliminating cash from society, those exceptions are destined to expire.

Next, Israel's finance ministry plans to deliver a proposal to parliament to criminalize the mere possession of cash exceeding a certain sum. One version of the proposal set the possession cap at the shekel equivalent of just $14,700.

Limits like Israel's are just one way to work toward "de-cashing" a population. A 2017 International Monetary Fund paper outlined other tactics, including abolishing large-denomination bills, imposing reporting requirements on cash transactions over a certain threshold, requiring the declaration of cash when entering or leaving a country, or applying an additional tax when cash is used. Various countries and economic blocs have already started implementing measures from this menu."
 

TempestOfTempo

Superstar
Joined
Jan 29, 2018
Messages
7,614

I just found it curious that the very same western gov'ts feverishly pushing for a digital ID are somehow taking a relaxed approach to cbdcs, according to this guy on Bloomberg. So what gives?
What gives? Good question. Perhaps rival factions within these elements have their specific area of technological expertise and dont want to cede authority with competing factions. Perhaps they just havent figured out a way for the elites to convert all of their cash assets yet.
 

Karlysymon

Superstar
Joined
Mar 18, 2017
Messages
6,068
What gives? Good question. Perhaps rival factions within these elements have their specific area of technological expertise and dont want to cede authority with competing factions. Perhaps they just havent figured out a way for the elites to convert all of their cash assets yet.
Western gov'ts are just being facetious with the public by playing the privacy card because everyone knows that once digital currencies are rolled out, you can kiss all privacy goodbye. Like the professor said: i wouldn't be able to buy you a cup of coffee without the gov't knowing about it.

1659555918126.png
 

Karlysymon

Superstar
Joined
Mar 18, 2017
Messages
6,068

Karlysymon

Superstar
Joined
Mar 18, 2017
Messages
6,068
2020

1660650973775.png


DAVOS, Switzerland — There are more than 100 recognized currencies in the world, but that could fall to five or six in the next 20 years, the Brazilian economy minister said at the World Economic Forum (WEF) Thursday.

European countries introduced 20 years ago a common currency, allowing, for example, people from France to travel to Germany without the need to change their cash. This could be replicated in other parts of the world in the future, provided they align themselves politically or economically, Paulo Guedes, economy minister of Brazil, said at a panel.

"If you consider the political dimension and the economic dimension, we would have five, six currencies 20 years, 30 years from now," he said.

At the moment, the U.S. dollar is seen as a safe currency asset — meaning that its value grows at times of crisis. Various countries have chosen to peg their currencies to the U.S. dollar for stability and trade reasons. However, in times of instability for the U.S. dollar, the peg could hurt those countries. Developing common currencies across different countries could help these economies reducing their dependence on the U.S. dollar.

"There would be one continental currency, the euro, another 'continental currency' the dollar-dominance-area and China would have their currency – there are 200 million oversees Chinese, these people live in the Philippines, they live in Malaysia and they trade with China, they go back and forth all the time and they are trading renminbi's and they will not keep liquidating their grants and debts using dollars," Guedes said supporting his idea of a fewer yet stronger currencies around the world.


However, speaking at the same panel, the IMF's chief economist Gita Gopinath said this was a scenario of "pretty low probability."

"Given what we know now and unless there are major wars that take place or serious walls that get built everywhere, assuming that doesn't happen, I think it is a pretty low probability scenario that would happen," Gopinath said.



She added that in order for other currencies to seriously challenge the dominance of the U.S. dollar, they need strong institutions. "There cannot be a tiny possibility that you would not be a zone the way it is now in the future," she said.

This is often the criticism against the euro, currently used in 19 countries. The euro zone has yet to develop certain mechanisms that will reassure investors and ordinary citizens that when the next economic shock hits, its structure will not collapse.

"I can see people very easily switching from paying in cash to paying using a digital payment platform. But whether they will as easily switch from the dollar to the renminbi that is a completely different question," Gopinath said at the WEF panel.
 
Top