Philip Lane, the European Central Bank’s chief economist, recently expressed the need to develop a digital euro – also known as the Central Bank of the Central Bank (CBDC) – to compete against Stablecoins such as electronic payment systems developed by American technology companies, such as Google Pay and Apple Pay. Not satisfied with eliminating cash, and now the goal of central banks is to eliminate any competitive electronic payment system.
We sleep in a world with digital currencies without any government coercion at all. As a 51 -year -old generation, I hold a lot of money in my wallet. I teach personal financing at the local university and recently asked a chapter of about 30 students if any of them has any money. None of them had one bill or currency on it. They use debit cards, credit cards, Venmo, and Apple Pay. As it turned out, the monetary use between the age group 18-24 Decline From 28 percent to 13 percent over the past five years. It is similar to the most comfortable electronic payments, though Studies show Persons spend 12 percent to 18 percent when using credit cards more than cash. If the government tries to implement a digital dollar, then there will be little resistance to that.
Currently, there 2.36 trillion dollars in the US currency in trading. Of course, a lot of this is held outside our borders, due to the domination of the dollar as the global reserve currency. The most common US currency sect is a $ 100 bill. there More bills $ 100 in trading From $ 1 bills. Many residents of foreign countries, such as Argentina, consider that the US dollar is a valuable store and hedge against inflation and a decrease in the value of local currencies. If the US government decides to gradually get rid of the paper currency, it will have far -reaching traces around the world.
Digital currency promoters claim that It would cause a decrease in criminal and unlawful activity. This may be true, or people may simply resort to another way to exchange or barter. Philosophical, virtue is not possible without freedom of choice. If people cannot choose misconduct, this does not make them virtuous. A society in which no one has the freedom of misuse is more terrifying than the society in which people are actually misunderstood.
Anonymous criticism. Just because one does not do anything illegal does not mean that one wants the government to know where to go to lunch every day. If you have a full electronic record of a person’s economic activity, you have a good idea of who they are as a person, which is why economic privacy is very important.
Good behavior is more than the desire for good social media engineering is the possibility of implementing motivational monetary policy using motivational monetary policy Negative interest rates. Criticism does not pay any benefit. Interest rates are out of their lowest levels before birth, so it is not difficult to find a bank that pays a decent interest rate at the expense of savings. But in 2010, interest rates were zero for a decade, and the central planners believe that they are able to reflect the contraction by determining interest rates at negative levels. Negative interest rates mean that your money is in the bank Losing The value over time. Of course, people will withdraw their money in the form of money, because zero interest is better than negative interest, but if there is no money, people will have to spend money in the bank before they lose value. Since we are now dealing with inflation instead of inflation, these conversations have mostly dried up, but negative rates can be at some point in the future.
Of course, any income received in the form of an invisible money in the interest of taxes and taxes cannot be imposed on it. Unofficial economy It represents about 7 percent From the gross domestic product in the United States, which is low, for the rest of the world. People with low low -income depend on cash. Families that have an income of less than $ 25,000 Use money by 36 percent Among their payments, while families with an income of more than $ 150,000 are used for only 10 percent of them. The middle layer or poor families is often unknown or unpopularly designed, and it has no rate as it is-which makes it in the official economy that reduces their standard of living to further.
The number of non -cash companies explodes. Part of this is consumer preferences – pushing a less embarrassing card or phone from the presence of a set of change in your pocket. But what we gain in comfort, we lose in privacy and freedom. The opportunity to implement the digital dollar during the next twenty years is exceptionally high, and most of the population will continue with it – significantly.