Programmable Digital Currencies with new controls for all citizens is coming.
Programmable Digital Currencies Are Coming
In many ways, the dawning of CBDCs — like the coming digital dollar — will be a good thing. In various other ways, however, a central-bank-issued digital currency will range from nuisance to nightmare.Digital dollars would likely also be programmable in and of themselves, allowing for instant tax payments at the point of sale. Tax refunds and rebates could be instant, too.
And attempts to purchase a restricted item — like, say, a firearm without proper background clearance — could be automatically denied.
In many ways, programmable digital money would be a fantasy come true for economists. This is because economists believe economies are driven by human behavior, and human behavior is driven by incentives, and all kinds of incentives could be built into digital money.
Imagine, for example, a maximum limit on the loan-to-value (LTV) ratio of home mortgages, designed to prevent future housing bubbles.
If such limits were programmed into the digital currency, as a form of “smart contract,” the transaction would not go through for a loan amount deemed too large.
Economists, political leaders, and central bank officials could then use the “smart contract” feature of digital dollars to tweak or massage incentives in all sorts of ways.
For example, fossil fuel use might be embedded with a higher VAT (value-added tax) surcharge than green energy use. Buying sugary cereal might create a small debit, whereas buying broccoli creates a small credit. And so on.
In addition to the above, all transactions would be instantly available for review, or easily aggregated into “big data” analysis patterns. This would give the Federal Reserve unprecedented new levels of visibility into the current state of the economy.
-
Well, the barter system is fine for small communities. When the amount of transactions surpasses the supply of gold, another form of barter must be realized. Then, when the FRN can no longer keep up with the barter/trade/tender a new form must be instituted to keep commerce rolling. Problem is you no longer have full control of your assets. Once converted to digital, anybody in the higher echelons can steal, tap, dilute your hard earned profits.
Implanted RFID chips coming soon.
Yesterday I went to purchase hardware at the local nut and bolt store. They do not take cash any longer. This is beneficial in some ways and risky in other. Chance of an armed masked robber getting your money is less, but the chance for fraud is greater.
One other (un)intentional fallout out is how are bums going to panhandle to get booze money? What happens to the Barter system? Private bartering will most likely increase, but to turn that into cash for most merchants, you are going to pay a hefty "Tax" or "extortion" fee.
Then, one big emp or electrical storm, everything shuts down.
It will be interesting to see this new plan take effect, work for awhile, then crash and burn. Probably a 30 year cycle. I won't bee here for the mayhem.0 -
Barter, as stated or black market (grey Market) will always beat any electronic/digital system. They, the Gubment can't stop it, especially in the smaller towns and countryside. The big cities are screwed.
Best.3 -
two chickens for an hour with your wife ?? 3 -
How many chickens would it take if you wanted spend an hour with somebody else's wife?mac10 said:two chickens for an hour with your wife ??0
Please sign in to leave a comment.
Comments
4 comments