#17 What is a CBDC (central bank digital currency)?
Is this the big fear from the book of Revelations – One World Currency?
Is this Big Brother watching every move?
Is this simply a way to print more cash?
We take a look at CBDC.
Let’s see what the big boys say.
This is from the Federal Reserve:
“CBDC is generally defined as a digital liability of a central bank that is widely available to the general public. Today in the United States, Federal Reserve notes (i.e., physical currency) are the only type of central bank money available to the general public. Like existing forms of money, a CBDC would enable the general public to make digital payments. As a liability of the Federal Reserve, however, a CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk.”
– Federalreserve.gov
Per this statement:
1.”CBDC would be the safest digital asset available to the general public, with no associated credit or liquidity risk.” Hold that thought. We will get to this later!
2. Federal Reserve notes are the paper currency we use every day. We call them dollar bills.
3. The U.S. Treasury prints our Federal Reserve notes/bills.
CBDC is:
Digital Only
It is a form of Crypto Currency
It will be issued by the US Federal Reserve, not printed by the US Treasury.
All digital payments/exchanges/purchases would be traceable, cataloged, and enumerated.
Questions:
Would all Loans in digital currency come from the federal reserve?
Would a bank be needed to store, save or lend digital currency?
Will a point come when all cash / bills become exchanged for CBDC?
Will CBDC be FDIC Insured against loss or theft?
How much Digital currency can be created by the Fed? Any limit?
What will back a CBDC?
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