World Economic Forum debuts Central Bank Digital Currency framework

Like I've said all along, Bitcoin was the masses introduction to central global blockchain based cryptocurrency, as revealed by the 1988 Economist cover (SATOSHI NAKEMOTO is even coded into the cover! Rearrange the letters of the TAKESHITA headline. All the letters are there). Anyone who claims the Bitcoin explosion, Economist cover and the CBDC are unrelated is either a moron or a shill.

https://www.zerohedge.com/crypto/wor...gital-currency

http://www3.weforum.org/docs/WEF_CBD...er_Toolkit.pdf


(eta: then a month later, the covids hit)

https://www.msn.com/en-us/money/mark...cid=spartandhp

And now at Davos they are pushing that the US have a digital Dollar. They expect China to introduce the digital Yuan by end of this year.

I'll finish out my remaining years on barter at this rate.

Most transactions are already done digitally.

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Originally Posted by Zippyjuan

Most transactions are already done digitally.

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And a whole lot aren't. Your point?

Even the sheep are starting to catch on. Customer at grocery store in line ahead of me today made a comment to the cashier about how she likes paying in cash but thinks she won't be able to much longer. She didn't understand why. I figured the checkout line at the store wasn't the place to start a lecture on what's really going on but I sure wanted to.

How exactly would reserve banking work within the framework of a DLT based CBDC? How would banks create bank credit and issue CBDC if there are finite "crypto coins" that the central bank owns/creates?

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Originally Posted by Bern

How exactly would reserve banking work within the framework of a DLT based CBDC? How would banks create bank credit and issue CBDC if there are finite "crypto coins" that the central bank owns/creates?

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Banks won't actually use crypto- they are looking into using blockchain technology to secure transactions.

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Originally Posted by Zippyjuan

Most transactions are already done digitally.

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True, however the outer layer of this onion still can be "improved" that is the retail end of it all I guess you could call it that? You & me the consumer and do away with cash altogether. Think of the implications this would have for marketing. Much clearer data collection and tax collection too. There will be nothing "they" won't know about you.

It seems that central banks are making a lot of noise about digital currencies lately, so I'm guessing there must have been some consensus reached recently (perhaps at Davos?).

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Leaders of six major central banks undertaking joint research on digital currencies are considering holding their first meeting in mid-April in Washington, the Nikkei newspaper reported on Thursday.

A Bank of Japan executive said no timetable has been fixed for any meeting of the group, but said central banks must respond flexibly to rapid digitalisation to stay relevant as issuers of money.

"In Japan, we don't have any plans now to issue central bank digital currencies (CBDC)," BOJ board member Takako Masai told a news conference in Nara, western Japan, on Thursday.

"But we need to make an effort so we're ready to respond, in case public demand for central bank digital currencies rise dramatically," she said.

The central banks of Britain, the euro zone, Japan, Canada, Sweden and Switzerland announced a plan last month to share their findings to look at the case for issuing digital currencies, amid growing debate over the future of money.

The leaders of the six central banks and the Bank of International Settlements will meet in April to discuss ways to streamline cross-border settlement and security issues that need to be addressed if central banks issue digital currencies in the future, the paper said.
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https://www.cnbc.com/2020/02/06/reut...l--nikkei.html

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Japan needs closer cooperation with the U.S. to curb the potential influence of China’s planned digital currency, according to a senior lawmaker in Prime Minister Shinzo Abe’s ruling party.

Speaking ahead of the Friday release of proposals aimed at paving the way for digital currency use in Japan, Norihiro Nakayama, vice minister for foreign affairs, said he hoped the Federal Reserve would partner with six other central banks including the Bank of Japan in studying digital currencies.

“We sense the digital yuan is a challenge to the existing global reserve currency system and currency hegemony,” said Nakayama, a top member of the ruling party group that drafted the proposals. “Without the U.S., we cannot counter China’s efforts to challenge the existing reserve currency and international settlement system.”

The comments indicate the heightened concern among policy makers in Japan over the likely impact of a digitized yuan expected for later this year. ...

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https://www.bloomberg.com/news/artic...oposals-friday

nm

Fed Governor Brainard also recently spoke on the implementation of a CBDC.

Fedcoin?
https://www.reuters.com/article/us-u...-idUSKBN1ZZ2XF

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PALO ALTO, Calif. (Reuters) - The Federal Reserve is looking at a broad range of issues around digital payments and currencies, including policy, design and legal considerations around potentially issuing its own digital currency, Governor Lael Brainard said on Wednesday.

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Once they start publicly talking about it, that means it's already been developed and is just waiting for the right crisis to implement it.

(eta: One year later here we are in the "Covid Crisis"...)

Jay Powell also admitted during his House Financial Services appearance today that the Fed is investigating a purely "digital dollar".

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As central bank digital currencies (CBDCs) march into view, a privately run version of digital fiat is adding a key tech partner.

Utility Settlement Coin (USC), the blockchain-based payments system involving commercial and central banks, will be working with ConsenSys-backed startup Adhara, CoinDesk has learned. Adhara was behind Project Khokha, which used enterprise blockchain client Quorum to see how zero-knowledge proofs performed with the South African Reserve Bank (SARB).

The move is one of only a handful of public overtures by Fnality, the company that oversees the development of USC. Fnality raised $64.5 million in June 2019 from 14 shareholders including banking giants Barclays, Santander, BNY Mellon, ING and others.

“We think adding Adhara is going to really help us. They've got experience of doing some of this type of stuff in other places,” said Fnality CEO Rhomaios Ram.

The sensitive nature of Fnality’s discussions with central banks means it likes to keep a low profile. To date, USC’s only known technology partner was London-based Clearmatics Technologies. (Clearmatics, which uses a fork of ethereum, played a key part in the inception of USC, along with Swiss lender UBS, back in 2015.)

“At Fnality we are pursuing a multi-partner strategy,” Ram said. “Part of that is associated with risk and part of that is associated with we want more people involved in this ecosystem.”

The USC is commercial bank money, as opposed to a pure CBDC, which is issued and backed by the domestic central bank and carries sovereign risk. However, the design of USC allows it to carry some of the characteristics of central bank money because the cash collateral backing the USC is held at a domestic central bank.

As stated in a mandate to its shareholder commercial banks, Fnality’s plan is to represent five currencies on its blockchain – USD, euro, JPY, GBP and CAD – and solve the so-called “cash on ledger” problem, allowing wholesale banking transactions to happen instantly, cross-border and 24/7.
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https://www.coindesk.com/secretive-d...-chatter-grows

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Two different reports of the same speech...

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At a time when many monetary regulators are exploring the concept of central bank digital currency (CBDC), the Bank of Canada has no intention to issue one, at least with the present scenarios.

Revealed by the central bank deputy governor Timothy Lane in a speech titled “Money and Payments in the Digital Age,” the regulator is not seeing any benefits of releasing such digital currencies unless the competitors take cash off the market.
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https://www.financemagnates.com/cryp...puty-governor/

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In remarks at the CFA Montreal FinTech RDV 2020, Bank of Canada deputy governor Timothy Lane confirmed that the central bank is preparing for a possible future in which it might have to issue a central bank digital currency (CBDC). While he claimed that there is no current need to issue a CBDC, he acknowledged that it was important to be prepared in case evolving circumstances make it necessary to do so in the future.

Lane described the bank’s contingency planning by first noting that growing changes in the economy, e-commerce, and cash usage could create a future in which cash becomes too costly for merchants to use. He cited Sweden and Norway as examples of societies where even banks have started to scale back cash processing services. In addition, he pointed to cross-border payment challenges, and transaction costs for family members living in different nations as examples of current payment challenges.

To help ensure a reliable payment system for Canadians, the central bank intends to focus on strengthening access to bank notes, updating the country’s payment system, and developing an appropriate framework for regulating private digital currencies and stablecoins.

According to Lane, there are scenarios that could cause the central bank to issue a CBDC. The first scenario would occur if Canada reached a “topping point where cash could no longer be used for a sufficiently wide range of transactions” – reducing Canadians’ access to economic activity and payment systems. The second scenario would involve mass adoption of private digital currencies that might directly challenge Canadian monetary sovereignty.
...

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https://dcebrief.com/bank-of-canada-...-be-necessary/

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Sweden has officially taken its place as one of the few countries that have started the piloting phase of its Central Bank Digital Currency, or CBDC. This marks one of the few significant economies currently partaking in it, with China has been in the lead for quite some time now. Now, however, China has gained a competitor, with the e-krona testing already underway.

The Riksbank, Sweden’s central banking firm, stands as one of the world’s oldest central banks. As it stands now, the Riksbank has launched a one-year pilot program of the country’s CBDC. This program aims to test its relative viability within the country, and how easy it would be to adopt a centrally-issued blockchain-based national currency. Should it prove successful, a full replacement will commence shortly after that.
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https://insidebitcoins.com/news/swed...wn-cbdc/251559

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Originally Posted by Bern

How exactly would reserve banking work within the framework of a DLT based CBDC? How would banks create bank credit and issue CBDC if there are finite "crypto coins" that the central bank owns/creates?

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Infinite crypto just like fiat dollars only everything would be ledger, and I mean everything.

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Originally Posted by Bern

How exactly would reserve banking work within the framework of a DLT based CBDC? How would banks create bank credit and issue CBDC if there are finite "crypto coins" that the central bank owns/creates?

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There are a variety of existing crypto systems that allow creation of more tokens by specific accounts. All of the 'stablecoins' work this way.

Or they could simply do like ripple (and others) and have a huge number of assets in reserve, yet only circulate a small amount.

Shit is getting real...

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As the markets continue to drop and the U.S. looks to Congress for agreement on a massive stimulus package to save the economy from impacts of the coronavirus pandemic, the newest offer by House Democrats includes a very forward-looking kind of stimulus: the creation of a ‘digital dollar’ and the establishment of ‘digital dollar wallets.’ In what will send shock waves through the cryptocurrency and blockchain industry, particularly for those following central bank digital currencies around the world, this signals the U.S. is serious in establishing infrastructure for a central bank digital currency.

Both Speaker Pelosi’s ‘Take Responsibility for Workers and Families Act’ and the ‘Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act (H.R. 6321),’ introduced by Chairwoman Maxine Waters of Financial Services Committee, introduced these concepts today as a way of delivering the economic stimulus payments to U.S. citizens.

The bill establishes a digital dollar, which it defines as ‘a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or ... an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).’ Additionally, a digital dollar wallet is identified as ‘a digital wallet or account, maintained by a Federal reserve bank on behalf of any person, that represents holdings in an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity.’

A mandate also requires all ‘member banks’ establish a ‘pass-through digital dollar wallet’ to all customers eligible for the stimulus. Member banks include those banks that are ‘members’ of the Federal Reserve and regulated by the Fed. Additionally, ‘Non-Member’ state banks - those that not members of the Federal Reserve and regulated by the FDIC - could opt-in to offer pass-through digital dollar wallets as well.

The Federal Reserve banks themselves would also make available a digital dollar wallet to any U.S. person eligible for the payments as well. Additionally, the U.S. Postal Service would aim to help unbanked individuals and/or those without proper ID to establish their identity be provided a digital dollar account, and would set up ATMs for customers to access their funds.
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https://www.forbes.com/sites/jasonbr...c#37f7969c4bea

Garage sales? You don't need no stinking garage sales.

Bloomberg opinion piece goes full Pollyanna...

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The solution: We need a digital dollar, a currency that all Americans can use to transact in the 21st century economy. And this crisis offers an ideal opportunity to create it.
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https://www.bloomberg.com/opinion/ar...s?srnd=premium

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Originally Posted by devil21

Fed Governor Brainard also recently spoke on the implementation of a CBDC.

Fedcoin?
https://www.reuters.com/article/us-u...-idUSKBN1ZZ2XF



Once they start publicly talking about it, that means it's already been developed and is just waiting for the right crisis to implement it.

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Or inflate a handy minor bug into a crisis.

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Originally Posted by acptulsa

Or inflate a handy minor bug into a crisis.

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Completely planned. Just waaaaaay too many pieces falling into place under this virus crisis to be coincidental.

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Originally Posted by devil21

Completely planned. Just waaaaaay too many pieces falling into place under this virus crisis to be coincidental.

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Even if the bug wasn't created for the purpose, the response was completely planned.

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Originally Posted by acptulsa

Even if the bug wasn't created for the purpose, the response was completely planned.

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“Only a crisis - actual or perceived - produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes the politically inevitable.”

― Milton Friedman

Microsoft Patent #WO2020060606

https://patentscope.wipo.int/search/...&tab=PCTBIBLIO

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... In a new project by the Atlantic Council Global Business and Economics Center and Harvard University Belfer Center we will begin tracking what the world is doing on central bank digital currencies: ...

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More: https://www.atlanticcouncil.org/blog...al-currencies/

They have an interactive map of the world. Hover your cursor over a country to see a report of their status with respect to a CBDC.

Biden's reported SEC chair pick is the head of the Digital Currency department at MIT, where bitcoin/blockchain was invented with NSA and DARPA funding.

https://en.wikipedia.org/wiki/Gary_Gensler

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Gary Gensler (born October 18, 1957) is Professor of the Practice of Global Economics and Management, MIT Sloan School of Management, Co-Director of MIT’s Fintech@CSAIL and Senior Advisor to the MIT Media Lab Digital Currency Initiative.[1] He also is an American public official and currently leads the Biden-Harris transition agency review team responsible for the Federal Reserve, Banking and Securities Regulators group.[2]

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Also in charge of "agency review" of the Fed's Securities group. IOW, CBDC incoming soon! This guy is being put into place to implement it on the SEC regulation side and probably to fashion SEC regulations that gut the existing crypto markets like Bitcoin since other digital currencies would be direct competitors to Fedcoin.

Yay for digital vaporware currencies! Hey dannno, how soon can we be like the Chinese? Bitcoin is totally not an introduction to digital wallet based currencies, right? You've told us so for years now.

https://www.cnbc.com/2021/03/05/chin...s-it-work.html

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Fan Yifei, deputy governor of the PBOC, said last year that there is a “pressing need to digitalize cash and coin” as producing and storing these currently is expensive. In an article in state-backed publication Yicai Global, Fan said cash and coins are not easy to use, they’re easy to counterfeit and because of their anonymity, could be used for illicit purposes.

The PBOC sees a number of other benefits to the digital yuan.

In a separate article, Fan outlined how a CBDC could make payments more efficient and improve the transmission of monetary policy. Fan also argues (d21: argues with who? himself?) that a digital yuan could help with financial stability through a system of “controllable anonymity.” This is where the payments would be anonymous to some degree, but data analysis tools could help the central bank catch illegal activities. more at link

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CBDC will enable better tracking yes.

But you are confused OP.

KYC/AML already exist for USD.

Only cash is free.

Keep using it. Gold is fine but I don't like it.

Bitcoin is easier.

https://ripple.com/insights/ripple-p...unching-cbdcs/

XRP could have a really big year if the SEC lawsuit is dismissed.

https://u.today/central-bank-of-fran...r-digital-euro

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Originally Posted by Pauls' Revere

Infinite crypto just like fiat dollars only everything would be ledger, and I mean everything.

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Thats how I see it , a US digital Fed dollar would be no different than an unbacked worthless paper dollar except they can capture tax info more easily .

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Originally Posted by oyarde

Thats how I see it , a US digital Fed dollar would be no different than an unbacked worthless paper dollar except they can capture tax info more easily .

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and manipulate it much more. They can code it to be spent only where they want and when to boost segments of the economy they want to.