by Summary:
A common argument against retail central bank digital currency (CBDC) is that CBDC would undermine financial stability by allowing the general public to swiftly move funds from banks to a government account. But in several countries such swift transfers are possible already today—in the US through Treasury Direct. (The argument also has conceptual flaws, see the paper On the Equivalence of Public and Private Money with Markus Brunnermeier.)
Topics:
Dirk Niepelt considers the following as important: bank run, CBDC, Financial stability, Notes, Treasury, Treasury direct, United States
This could be interesting, too:
A common argument against retail central bank digital currency (CBDC) is that CBDC would undermine financial stability by allowing the general public to swiftly move funds from banks to a government account. But in several countries such swift transfers are possible already today—in the US through Treasury Direct. (The argument also has conceptual flaws, see the paper On the Equivalence of Public and Private Money with Markus Brunnermeier.)
Topics:
Dirk Niepelt considers the following as important: bank run, CBDC, Financial stability, Notes, Treasury, Treasury direct, United States
This could be interesting, too:
Dirk Niepelt writes “Governments are bigger than ever. They are also more useless”
Dirk Niepelt writes The New Keynesian Model and Reality
Dirk Niepelt writes Urban Roadway in America: Land Value
Claudio Grass writes The road to Serfdom: are we on the final stretch?
A common argument against retail central bank digital currency (CBDC) is that CBDC would undermine financial stability by allowing the general public to swiftly move funds from banks to a government account. But in several countries such swift transfers are possible already today—in the US through Treasury Direct.
(The argument also has conceptual flaws, see the paper On the Equivalence of Public and Private Money with Markus Brunnermeier.)