Congressional action. As the Fed governor said, the technology exists, it's a problem. Honestly, having most of the world tied to the US Dollar has been incredibly effective stick in dealing with Russia. They have been almost immediately isolated from the world's economy and has created immense pressure to stop their current behavior. In the long run, it will likely wreck their economy. If the US created a digital dollar, the rest of the world would in some way shape or form be tied to it economically, and would add immense power to the fed and the US govt when it comes to foreign policy. There are tons of challenges when it comes to privacy, however. If the Federal Reserve creates a basic wallet system for people to use for the USD, the Federal Reserve would know exactly who is spending money on what in real time. IN China, that level of govt control is expected. In the US.... there's a lot of people that would be upset by that.
What would it take? A democrat administration, or at least one built on fear of being beaten out by China. For the common Man there’s no benefit to a central bank digital currency. It limits the way people can transact exchanges of goods and services, obligates the relinquishing of privacy, and isolates the people without bank accounts. Visit China without a local bank account and you won’t be able to buy a lot of things easily or not at all. And, much like our health officials, the creators will obfuscate the truth about it- about what it is, how it works, who controls it. It’s like the National ID topic. We all have personal ID, but it’s at the local and state level for privacy reasons. It creates obstacles to central control in our Republican form of government.
China is a communist country. Their citizens are not free, which is why they have the digital currency. The US is a free country and a Federally regulated digital currency where the government decides how you spend your money has NO place here. It would be in direct violation of our human rights.
i would not be in a hurry to catch up to China or anyone who want us to all have social scores, im happy to not have anyone tell me how to spend the money i worked hard for, but these things have to happen so Bible can be full fill,God be with us all.
I think it might take, sad to say, a bit more time to normalize digital transaction in an aging population. When I was a banker in 2014 just trying to get older people comfortable with online banking was crazy. And it takes infrastructure. We sold Elavon and I saw LOADS of small businesses stuck in bad/sketchy merchant services contracts. Square was just starting. Even now I deal with a host of card machines as a consumer that are in various stages of obsolescence.
Yup. Whenever you see CBDC, think: surveillance coin. Just look what China is doing with its CBDC. Besides, government sucks at tech, just try and navigate any government website to see what I mean. Government needs to get out of the way and create a clear regulatory environment to support stable coins. Leave the Inovation to the private sector. That’s the only way a digital USD / stable coin is going to out compete the digital Yuan.
A CBDC app is also a powerful way for governments to collect private data from users. Federal government should Let private FinTech industry run with this, regulate stable coin backup to protect consumers, and get out of the currency management business. Just collect tax revenues and leave the currency business to global, immutable, decentralized, democratically governed cryptocurrencies. They got out of telecom and airlines in the past...why not get out of $?
This is a viewpoint I hear a lot and a major reason why the Fed seems less than enthusiastic about getting involved. Privacy would be a top concern but the government would also want to be able to stop fraud and crime. Finding a balance is critical to making a CBDC in the US a reality and no one really has a perfect solution.
The biggest selling points to the gov't is that they can track it granularly and tax it at the point of transaction. They're not going to want any competition to that, which doesn't bode well for the rest of cryptocurrencies as they could be so heavily regulated that they're effectively useless to all but those in the black/gray markets. The good thing that could come out of it is that the need to file annual taxes could go away, although there would likely be a lot of pain to get to that point.
@@bodytolson7390 Russians who had moved their bitcoin off of the exchange didn’t get shut down. Coinbase can only confiscate what you leave in their custody.
What would be the benefit to owning a CBDC as opposed to a federally insured private bank account. Why is the Fed interested in CBDC's while seemingly opposed to narrow banks, banks that back their deposits fully with Central Bank reserves?
I didn't have much time to get into it, but it would provide benefits largely to small business owners and low income households. It would eliminate fees for the business and money could get directly to households for stimulus payments or social security, etc. Banks couldn't charge overdraft fees or maintenance fees or foreign transaction fees. It would be much easier and cheaper to access and exchange money overseas. It would eliminate a lot of costs, basically. This is why the banks are so opposed to it
@@mitchell.9632 I don't think that's a big consideration but a cbdc would be very beneficial to small businesses, reduce their costs and make them more competitive
Don't want it, too much government control. What's next social credit score and buying allotances with your digital currency? Maybe China isnt the best example to follow societally.
@@mack-uv6gn Nothing is wrong with it taking 2-3 days, per se. But wouldn't you rather have an instant transfer? Whenever I travel exchanging currency is always a hassle and usually pretty expensive. Digital currencies would eliminate that time and cost, at least in theory. The Fed wants to be sure the banking system isn't cut out of the process, so it likely won't eliminate the fees completely.
@@DionRabouinWSJ understood but have a central figure or entity in time of stress or uncertainty is very well needed. I’m afraid decentralized finance will become the wild Wild West to some degree.
Not really. It's more that when China's government decides to do something they just do it. Here, the government has to convince a lot of people to do things. That can be good and bad.
In the event the US does come up with digital currency can I invest in it and for that matter can I invest in buy stock Chinese digital currency the same way I buy stock in cryptocurrency
1.) How would a central bank digital currency affect stable coins? 2.) How would a central bank digital currency affect the federal reserve’s role especially with its historical roots being based out of “we don’t want a central bank in the US but we need one (I forget which financial crash, 1929?, led to it) so let’s make sure it’s powers are very limited” 3.) I think someone mentioned it in a previous comment but isn’t building the infrastructure to address the inequality in access to electrification and internet around the country needed for even a successful roll out? As yes you could for a time is a CBDC off line or with somewhere with poor signal strength but ultimately the settlement and balancing has to be done on this ledger which needs to be updated correct? 4.) Would a CBDC force developing countries even more to adopt or entrench themselves in an economic model that is even less successful than the current Aid Industry/IMF/world bank/ local economy balancing act? I mean that every countries’ economy is unique to its culture as in Japan’s model isn’t easily replicable in the USA or the US economy isn’t replicable in China due to cultural differences but would a US CBDC potentially rob developing countries from creating advanced economies that work well because they are a reflection of their own idiosyncrasies?
The benefit of Digital currency is since it's Govt owned and govt facilitated transactions, you don't have to pay fee to payment gateways like VISA and MasterCard, hence middlemen are taken out of the transactions. It will reduce goods cost as payment gateways charge transaction fee from the shopowners and by using digital currency you can avoid it.
Ask a Chinese citizen how their credit based system is going. You are held hostage by the government. Because God forbid you do something wrong in their eyes they just take your money. No judge jury or trial. And you think we would never do that? You need to read what people on the world economic forum are saying. Because this is what they want. A world banking system. I couldn't think of a more terrible idea
@@burromouse cool your jets with the conspiracy theory. We’ve 1) already got an interconnected global financial system and 2) we’re not the CCP, not even close to it.
@@burromouse If you actually asked a Chinese citizen about these credit scores, it’s actually more akin to financial credit/driving points deducted for infraction rather than anything based on Good behaviour or speeches.
You could improve arguments and line of thought. Like China has its CBDC, and there all this controversy about or not to use CBDC was never an issue to be discussed in first place.
Theoretically. The Fed could impose a negative interest rate on CBDC in order to encourage people to spend, rather than save their money. It's been discussed as a possibility.
A *Central Bank Digital Currency (CBDC )* is like a coupon to buy a Breyers* 48* oz vanilla* ice cream* from Walmart* by 12/31/2030* *Not Haagen-Dazs *Not 16 oz *Not chocolate *Not froyo *Not Target *Not 1/1/2031
This won't work, just look at what happened at Intel, CrowdStrike and Microsoft, systems with AI are too easy to hack or too easy to write bad code where chips and the like are faulty ... Our systems are not there yet to be considered safe ...
Clearly having a digital.currency is no factor in economic stability or growth, as China shows us. The majority of world currecy is already non-material. Much of it is at considerable risk - in always somewhat volitile markets and subject to the whims of the Federal Reserve, etc. Also, regardless of which political or business leadership we look to, one thing always remains the same. Whatever government or the wealthy want, is bad for those who aren't in either group. Not that any of us little people can change what's coming to any large extent, but as long as there is some choice, get many opinions, particulary from non-western sources. Then choose carefully.
Maybe something to do with it being a new and complex system with a lot of kinks to iron out and a lot of language barriers between the operators and regulators.
Probably because they know it probably won't hold the same value as cash. Why would i choose Fed digital currency when i have cash digital money and bitcoin.
There was a prototype by MIT digital currency initiative, some of researcher are Bitcoin core developers. The published a paper on the prototype and the code is open source. Two main take away: 1. The issue with scalability of CBDC results in. Recommendations of not using Blockchains. 2. The privacy concerns remains there, they recommended that the banks that issue the CBDC will maintain the users privacy (they won't).
The government has always moved at a snails pace with regard to literally everything they do, and almost always much too slowly to affect the issue they are trying to. It's a big part of the reason government always appears so ineffective. They aren't built to act quickly on anything.
your comment was as confusing as the entire video yes you were saying words that I understand but you were not putting them together in sentences that painted a picture for me so I'm going to have to say I like what I can see and what others can see I am handing out that is I prefer the Personal Touch here and the only person that needs to see what I'm doing is the person I'm working with to receive their goods not to mention if I use the power of three to help scramble things so that I can keep my anonymity then I've got three wallets that are working off of one wallet I've got three LLCs that are working off of those three wallets and then I've got the central bank as well as anybody else's Central Bank wallet and backup wallet and I've got to remember that each and every one of those wallets can be seated and all of the digital currency can be pirated individually so nothing all of that out if each and every one of them does a 1% for business I can easily end up paying 20% for business plus 30% for taxes as well as having to follow nine different stock markets just to deal with my personal wallet check on top of that 24/7 365 I have to be able to access all of my wallets so that if any of them receive a notice of action I can decide whether or not to deny that action that is a minimum of four different wallets and at least one of those wallets that my personal government has to be aware of because I live on a subsistency this is a major issue to me because now I have to verify all digital incomings and outgoing to my subsistency nullifying all anonymity because digital purchases back to a final wallet all become accessible to anybody who has access to a final wallet and my other wallets can be accessed by anybody who has access to those wallets or basically it eliminates the possibility of getting loans because nobody knows what assets you have because you hate need to keep your anonymity or you lose all your anonymity and lose the possibility of not being wiped out so if I go to digital currency basically I need to surrender my subsistency and make multiple baskets to put multiple incomes into which means I need to create multiple incomes and the worst part about that is that each of those incomes runs individually for a credit score which is good for them and bad for having a stable wallet basically I can have as many as 20 different credit scores depending on what combination of wallet and LLC is but because I'm using an LLC yeah my credit score probably isn't that good because there's no accessing Beyond the LLC which means there's no assets to be at or I have minimal Assets in each LLC giving me minimal credit score for somebody who's constantly putting out new product and selling it this is a good thing but then again on the other hand for somebody who is putting out one product this is a nightmare
What do you think it will take for the U.S. to catch up to China with digital currency integration?
Congressional action. As the Fed governor said, the technology exists, it's a problem.
Honestly, having most of the world tied to the US Dollar has been incredibly effective stick in dealing with Russia. They have been almost immediately isolated from the world's economy and has created immense pressure to stop their current behavior. In the long run, it will likely wreck their economy.
If the US created a digital dollar, the rest of the world would in some way shape or form be tied to it economically, and would add immense power to the fed and the US govt when it comes to foreign policy.
There are tons of challenges when it comes to privacy, however. If the Federal Reserve creates a basic wallet system for people to use for the USD, the Federal Reserve would know exactly who is spending money on what in real time. IN China, that level of govt control is expected. In the US.... there's a lot of people that would be upset by that.
What would it take? A democrat administration, or at least one built on fear of being beaten out by China. For the common Man there’s no benefit to a central bank digital currency. It limits the way people can transact exchanges of goods and services, obligates the relinquishing of privacy, and isolates the people without bank accounts.
Visit China without a local bank account and you won’t be able to buy a lot of things easily or not at all. And, much like our health officials, the creators will obfuscate the truth about it- about what it is, how it works, who controls it. It’s like the National ID topic. We all have personal ID, but it’s at the local and state level for privacy reasons. It creates obstacles to central control in our Republican form of government.
China is a communist country. Their citizens are not free, which is why they have the digital currency. The US is a free country and a Federally regulated digital currency where the government decides how you spend your money has NO place here. It would be in direct violation of our human rights.
i would not be in a hurry to catch up to China or anyone who want us to all have social scores, im happy to not have anyone tell me how to spend the money i worked hard for, but these things have to happen so Bible can be full fill,God be with us all.
I think it might take, sad to say, a bit more time to normalize digital transaction in an aging population.
When I was a banker in 2014 just trying to get older people comfortable with online banking was crazy.
And it takes infrastructure. We sold Elavon and I saw LOADS of small businesses stuck in bad/sketchy merchant services contracts. Square was just starting.
Even now I deal with a host of card machines as a consumer that are in various stages of obsolescence.
After what they did in Canada, we should all know what a digital currency would look like
Yup. Whenever you see CBDC, think: surveillance coin. Just look what China is doing with its CBDC. Besides, government sucks at tech, just try and navigate any government website to see what I mean. Government needs to get out of the way and create a clear regulatory environment to support stable coins. Leave the Inovation to the private sector. That’s the only way a digital USD / stable coin is going to out compete the digital Yuan.
They will be able to CONTROL YOUR MONEY !!!!! MEANS THEY CONTROL YOU !!!!!!!! CASH IS FREEDOM, WITH THE
HELL IS WRONG WITH YOU PEOPLE !!!!!!!!!
Exactly !!!
A CBDC app is also a powerful way for governments to collect private data from users. Federal government should Let private FinTech industry run with this, regulate stable coin backup to protect consumers, and get out of the currency management business. Just collect tax revenues and leave the currency business to global, immutable, decentralized, democratically governed cryptocurrencies. They got out of telecom and airlines in the past...why not get out of $?
This is a viewpoint I hear a lot and a major reason why the Fed seems less than enthusiastic about getting involved. Privacy would be a top concern but the government would also want to be able to stop fraud and crime. Finding a balance is critical to making a CBDC in the US a reality and no one really has a perfect solution.
The biggest selling points to the gov't is that they can track it granularly and tax it at the point of transaction. They're not going to want any competition to that, which doesn't bode well for the rest of cryptocurrencies as they could be so heavily regulated that they're effectively useless to all but those in the black/gray markets. The good thing that could come out of it is that the need to file annual taxes could go away, although there would likely be a lot of pain to get to that point.
Yea until the government doesn't like your or what you represent then boom you have no money
Well, considering coinbase just shut out thousands of Russians, I'd say we're screwed in either situation
@@bodytolson7390 Russians who had moved their bitcoin off of the exchange didn’t get shut down. Coinbase can only confiscate what you leave in their custody.
they can already do that
@@skylarkesselring6075 not without a court order. And then can still hide money. Can’t hide digital.
That's not how this works. The current system is more susceptible to that than a blockchain-based system. Also 1A is a thing.
What would be the benefit to owning a CBDC as opposed to a federally insured private bank account. Why is the Fed interested in CBDC's while seemingly opposed to narrow banks, banks that back their deposits fully with Central Bank reserves?
Because the government wants COMPLETE control over how you spend your money. It is fascism and tyranny. It is the Great Reset.
I still don't get it either.
I didn't have much time to get into it, but it would provide benefits largely to small business owners and low income households. It would eliminate fees for the business and money could get directly to households for stimulus payments or social security, etc. Banks couldn't charge overdraft fees or maintenance fees or foreign transaction fees. It would be much easier and cheaper to access and exchange money overseas. It would eliminate a lot of costs, basically. This is why the banks are so opposed to it
@@DionRabouinWSJ How much do you think consolidation (monopsonies and monopolies) (great video you started the channel with) has to do with it?
@@mitchell.9632 I don't think that's a big consideration but a cbdc would be very beneficial to small businesses, reduce their costs and make them more competitive
I bet the establishment and corporate overlords just love this guy
You forgot control of people lives
If China was ahead of us towards the cliff would we want to play catch-up?
Great video! Informative and concise
Don't want it, too much government control. What's next social credit score and buying allotances with your digital currency?
Maybe China isnt the best example to follow societally.
Isn’t digital currency already in use when a credit card is used?
Nope. That's a bank loan to the business that is eventually debited from your account. It takes days and there are a lot of fees involved
@@DionRabouinWSJ is it a digital transfer? What’s wrong with a transaction taking 2-3 days? Doesn’t that help stop fraud?
@@mack-uv6gn Nothing is wrong with it taking 2-3 days, per se. But wouldn't you rather have an instant transfer? Whenever I travel exchanging currency is always a hassle and usually pretty expensive. Digital currencies would eliminate that time and cost, at least in theory. The Fed wants to be sure the banking system isn't cut out of the process, so it likely won't eliminate the fees completely.
@@DionRabouinWSJ understood but have a central figure or entity in time of stress or uncertainty is very well needed. I’m afraid decentralized finance will become the wild Wild West to some degree.
@@mack-uv6gn I don't think anyone would disagree that a central entity is needed.
invasion of privacy is what coms to mine
if the dollar keep loosing value with inflation, what's going to back up the digital dollar ?
Nothing. It’s just turning our money into a sql database.
Nothing. And you have no say so about anything.
Nothing. The point of it is to keep us down.
Nice Dion!
Thank you, Susan!
Being first does not always mean being better. Maybe the US is letting china be the crash test dummy for digital dollar use.
Not really. It's more that when China's government decides to do something they just do it. Here, the government has to convince a lot of people to do things. That can be good and bad.
@@DionRabouinWSJ ok, time will tell
In the event the US does come up with digital currency can I invest in it and for that matter can I invest in buy stock Chinese digital currency the same way I buy stock in cryptocurrency
1.) How would a central bank digital currency affect stable coins?
2.) How would a central bank digital currency affect the federal reserve’s role especially with its historical roots being based out of “we don’t want a central bank in the US but we need one (I forget which financial crash, 1929?, led to it) so let’s make sure it’s powers are very limited”
3.) I think someone mentioned it in a previous comment but isn’t building the infrastructure to address the inequality in access to electrification and internet around the country needed for even a successful roll out? As yes you could for a time is a CBDC off line or with somewhere with poor signal strength but ultimately the settlement and balancing has to be done on this ledger which needs to be updated correct?
4.) Would a CBDC force developing countries even more to adopt or entrench themselves in an economic model that is even less successful than the current Aid Industry/IMF/world bank/ local economy balancing act? I mean that every countries’ economy is unique to its culture as in Japan’s model isn’t easily replicable in the USA or the US economy isn’t replicable in China due to cultural differences but would a US CBDC potentially rob developing countries from creating advanced economies that work well because they are a reflection of their own idiosyncrasies?
The 87,000 armed IRS agents will let you know in person.
@@mattsullivan7363 aren’t they supposedly overwhelmed by their workload as it is?
@@0rpheus It's all about control and they hire you to spin it like it's custard. You are so obvious.🤮
The benefit of Digital currency is since it's Govt owned and govt facilitated transactions, you don't have to pay fee to payment gateways like VISA and MasterCard, hence middlemen are taken out of the transactions. It will reduce goods cost as payment gateways charge transaction fee from the shopowners and by using digital currency you can avoid it.
Ask a Chinese citizen how their credit based system is going. You are held hostage by the government. Because God forbid you do something wrong in their eyes they just take your money. No judge jury or trial. And you think we would never do that? You need to read what people on the world economic forum are saying. Because this is what they want. A world banking system. I couldn't think of a more terrible idea
Very true. Small business owners would definitely benefit
@@burromouse cool your jets with the conspiracy theory. We’ve 1) already got an interconnected global financial system and 2) we’re not the CCP, not even close to it.
@@DionRabouinWSJ you are a shill.
@@burromouse
If you actually asked a Chinese citizen about these credit scores, it’s actually more akin to financial credit/driving points deducted for infraction rather than anything based on Good behaviour or speeches.
You could improve arguments and line of thought. Like China has its CBDC, and there all this controversy about or not to use CBDC was never an issue to be discussed in first place.
I love how Dion keeps it real. Subscribed.
I LIKE MY CASH, PAPER MONEY
Anyone even know what negative interest rates are? You will!
People get all triggered when there is the suggestion of even taking the penny out of circulation.
This is true.
Negative interest rates?
Theoretically. The Fed could impose a negative interest rate on CBDC in order to encourage people to spend, rather than save their money. It's been discussed as a possibility.
A *Central Bank Digital Currency (CBDC )* is like a coupon to buy a Breyers* 48* oz vanilla* ice cream* from Walmart* by 12/31/2030*
*Not Haagen-Dazs
*Not 16 oz
*Not chocolate
*Not froyo
*Not Target
*Not 1/1/2031
This won't work, just look at what happened at Intel, CrowdStrike and Microsoft, systems with AI are too easy to hack or too easy to write bad code where chips and the like are faulty ... Our systems are not there yet to be considered safe ...
lol he busting out of that shirt he wearing lol
So do you want to loose cash?
Should we really be trying to emulate chynas mass surveillance police state?
Xrp..Xlm..algo?
As long as they dont fuck with my bitcoin then we good.
Clearly having a digital.currency is no factor in economic stability or growth, as China shows us.
The majority of world currecy is already non-material. Much of it is at considerable risk - in always somewhat volitile markets and subject to the whims of the Federal Reserve, etc.
Also, regardless of which political or business leadership we look to, one thing always remains the same. Whatever government or the wealthy want, is bad for those who aren't in either group.
Not that any of us little people can change what's coming to any large extent, but as long as there is some choice, get many opinions, particulary from non-western sources. Then choose carefully.
the real question is, what is taking them sooooo long??
Yes, this is certainly the question some people are asking.
Maybe something to do with it being a new and complex system with a lot of kinks to iron out and a lot of language barriers between the operators and regulators.
Probably because they know it probably won't hold the same value as cash. Why would i choose Fed digital currency when i have cash digital money and bitcoin.
There was a prototype by MIT digital currency initiative, some of researcher are Bitcoin core developers.
The published a paper on the prototype and the code is open source.
Two main take away:
1. The issue with scalability of CBDC results in. Recommendations of not using Blockchains.
2. The privacy concerns remains there, they recommended that the banks that issue the CBDC will maintain the users privacy (they won't).
The government has always moved at a snails pace with regard to literally everything they do, and almost always much too slowly to affect the issue they are trying to. It's a big part of the reason government always appears so ineffective. They aren't built to act quickly on anything.
Digital currency will not have any value at least the dollar does
Sad
Do you have contact information for business cooperation?
This is cool the final step the anti Christ needs in place amazing watching a book play out.
your comment was as confusing as the entire video yes you were saying words that I understand but you were not putting them together in sentences that painted a picture for me so I'm going to have to say I like what I can see and what others can see I am handing out that is I prefer the Personal Touch here and the only person that needs to see what I'm doing is the person I'm working with to receive their goods not to mention if I use the power of three to help scramble things so that I can keep my anonymity then I've got three wallets that are working off of one wallet I've got three LLCs that are working off of those three wallets and then I've got the central bank as well as anybody else's Central Bank wallet and backup wallet and I've got to remember that each and every one of those wallets can be seated and all of the digital currency can be pirated individually so nothing all of that out if each and every one of them does a 1% for business I can easily end up paying 20% for business plus 30% for taxes as well as having to follow nine different stock markets just to deal with my personal wallet check on top of that 24/7 365 I have to be able to access all of my wallets so that if any of them receive a notice of action I can decide whether or not to deny that action that is a minimum of four different wallets and at least one of those wallets that my personal government has to be aware of because I live on a subsistency this is a major issue to me because now I have to verify all digital incomings and outgoing to my subsistency nullifying all anonymity because digital purchases back to a final wallet all become accessible to anybody who has access to a final wallet and my other wallets can be accessed by anybody who has access to those wallets or basically it eliminates the possibility of getting loans because nobody knows what assets you have because you hate need to keep your anonymity or you lose all your anonymity and lose the possibility of not being wiped out so if I go to digital currency basically I need to surrender my subsistency and make multiple baskets to put multiple incomes into which means I need to create multiple incomes and the worst part about that is that each of those incomes runs individually for a credit score which is good for them and bad for having a stable wallet basically I can have as many as 20 different credit scores depending on what combination of wallet and LLC is but because I'm using an LLC yeah my credit score probably isn't that good because there's no accessing Beyond the LLC which means there's no assets to be at or I have minimal Assets in each LLC giving me minimal credit score for somebody who's constantly putting out new product and selling it this is a good thing but then again on the other hand for somebody who is putting out one product this is a nightmare