Visa and Mastercard have surged over the past two decades, reaching a combined $1 trillion market cap. That has attracted unwanted attention from regulators.
Because electronic payments that do not require a middleman are inherently better than funneling everything through centralized organizations like Visa. They could make their own dollar based blockchain that has secure and private transactions based on their own stablecoin. It would be the same as a cash payment.
Again, why would the government waste real money doing that with fake money, when they can do it with real money instead? What benefit is there, over just being a regular processor for real money? Because it’s definitely not the inability to reverse transactions in blockchain systems, that’s more of a feature for criminals.
I have a very strong feeling that @paf0@lemmy.world is being downvoted here, not because they make a bad point, but because they phrased it in terms of cryptocurrency which immediately triggers negative reactions from everyone.
What OP has proposed is neither novel, nor a terrible idea. In fact, economists call it a central bank digital currency. And yes, some countries have adopted it. It’s usually not run with a blockchain, but that’s because if you have a trusted central entity to run the system, that being the central bank, a blockchain is inferior in practically every aspect to a normal relational database. That’s why all current CBDCs still use fairly traditional accounting systems.
Your use, however, of the terms “real money” and “fake money” has, I believe, the effect of shutting down intelligent conversation, rather than encouraging it. “Money” is a social construct. “Real money” is whatever the Government declares to be “real” and that the population is willing to use. It doesn’t need to be physical money. And it is unquestionable that in the countries that have adopted the legal framework that allows their central banks to issue CBDCs, the money so issued this way is as real and legally equivalent to paper banknotes and metal coins.
Actually, that is a decent point in this idea’s favor. Don’t think that’ll overcome the downsides, but I’ll give you a point for that one all the same.
if the government was to do their own crypto it could do a lot to disrupt the current unregulated “stablecoins” that currently exist, i could see it happing if for no other reason than to fight money laundering. If the fed is doing it, it becomes “real” money and most people would probably prefer a fed coin to something like usdt.
I’d love to see the federal reserve issue a no fee stablecoin, though I wonder if it would be secure in the long term with quantum coming.
Why would the government put time into making fake money when they can just make more real money?
Our money is already “fake money”
Because electronic payments that do not require a middleman are inherently better than funneling everything through centralized organizations like Visa. They could make their own dollar based blockchain that has secure and private transactions based on their own stablecoin. It would be the same as a cash payment.
Again, why would the government waste real money doing that with fake money, when they can do it with real money instead? What benefit is there, over just being a regular processor for real money? Because it’s definitely not the inability to reverse transactions in blockchain systems, that’s more of a feature for criminals.
I have a very strong feeling that @paf0@lemmy.world is being downvoted here, not because they make a bad point, but because they phrased it in terms of cryptocurrency which immediately triggers negative reactions from everyone.
What OP has proposed is neither novel, nor a terrible idea. In fact, economists call it a central bank digital currency. And yes, some countries have adopted it. It’s usually not run with a blockchain, but that’s because if you have a trusted central entity to run the system, that being the central bank, a blockchain is inferior in practically every aspect to a normal relational database. That’s why all current CBDCs still use fairly traditional accounting systems.
Your use, however, of the terms “real money” and “fake money” has, I believe, the effect of shutting down intelligent conversation, rather than encouraging it. “Money” is a social construct. “Real money” is whatever the Government declares to be “real” and that the population is willing to use. It doesn’t need to be physical money. And it is unquestionable that in the countries that have adopted the legal framework that allows their central banks to issue CBDCs, the money so issued this way is as real and legally equivalent to paper banknotes and metal coins.
Why, for tracking of course!
Actually, that is a decent point in this idea’s favor. Don’t think that’ll overcome the downsides, but I’ll give you a point for that one all the same.
if the government was to do their own crypto it could do a lot to disrupt the current unregulated “stablecoins” that currently exist, i could see it happing if for no other reason than to fight money laundering. If the fed is doing it, it becomes “real” money and most people would probably prefer a fed coin to something like usdt.
Money is made from belief. Why would the public at large believe it to be a real currency?
if the banks and federal government say it is and accept it as such then it is by definition “real” currency.
It would be real money if the federal reserve issued it. Cash still exists, is that a feature for criminals or does it benefit the poor and unbanked?
No, as you said, its a stable coin backed by real money.
Cash transactions can easily be reversed, unlike blockchain, but nice bait.
Literally the opposite is true…
Online payments, which is a lot of transactions.
Pretty sure the current system of real money already handles that one friend.