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We must not allow the elimination of cash. If we rely solely on central bank digital currencies, the computer will anticipate our actions and prevent us from doing certain things. For instance, if there is a restriction on traveling beyond 5 miles from home and you attempt to buy water 6 miles away, you will be denied. There are numerous reasons why it is important to keep cash.

CBDCs (Central Bank Digital Currencies) differ greatly from cash. Unlike cash, CBDCs provide central banks with complete control over regulations and usage. This control is enforced through advanced technology, making a significant distinction from cash.

The main difference with a Central Bank Digital Currency (CBDC) is that the central bank will have complete control over the rules and regulations governing its use. They will also have the technology to enforce these rules. This is significant because it sets CBDCs apart from cash.

The ECB has given the green light for the digital euro, entering the preparation phase. This move involves collaboration with European institutions to ensure Europe is equipped with the currency of the future. Cash will still be available alongside digital cash, providing consumers with free and convenient usage across the euro area. However, the implementation is subject to the legislative process.

The G7, under the UK's presidency, is introducing public policy principles for retail central bank digital currencies (CBDCs). These CBDCs are digital versions of money, similar to digital banknotes, that can be used alongside physical currency. Unlike other digital money, CBDCs are issued directly by central banks like the Bank of England in the UK.

CBDC can enhance financial inclusion through programmability, enabling targeted policy functions like welfare payments, consumption coupons, and food stamps. By programming CBDC, money can be precisely directed to specific individuals and purposes, such as food. However, it is important to note that CBDC is not a cure-all for financial inclusion challenges. Factors like financial literacy and digital literacy are not solely technology-related and require collaboration with other policies to improve overall financial inclusion.

The ECB has approved the preparation phase for the digital euro, involving all European institutions. Cash will still be available alongside digital cash, giving consumers the freedom to choose. The digital euro aims to be free, convenient, and widely accepted.

Digital money offers significant benefits, beyond just being a digital version of physical currency. It allows for programmability, such as central bank currency with expiry dates. In my book, I discuss the potential for a world where the government can restrict the use of central bank money for certain purchases it deems undesirable, like ammunition, drugs, or pornography. This concept has the potential to be both better and darker, but it highlights the power of a central bank digital currency (CBDC).

There is a significant difference between cash and Central Bank Digital Currency (CBDC). With cash, we don't know who is using specific bills, but with CBDC, the Central Bank will have complete control over the rules and regulations governing its use. They will also have the technology to enforce these rules. These differences make CBDC distinct from cash.

The purpose of CBDC is to align with how people buy, save, and work with goods in a modern economy. It aims to address challenges before implementation.

The speaker discusses the purpose of a Central Bank Digital Currency (CBDC), stating it's meant to keep track of how people purchase, save, and work with goods. They acknowledge a report suggesting cautious progress and state the government is proceeding with caution, citing issues like privacy, financial inclusion, limits, monetary policy, and interest. A consultation is underway, and more information will be available tomorrow. The speaker says a CBDC is about being a modern economy that recognizes how citizens want to do business, but it presents challenges that need to be overcome before proceeding. They state they are still in the phase of looking at those challenges.

The speaker expresses skepticism towards central bank digital currency (CBDC) and questions its purpose. They highlight that existing platforms like Venmo can already perform financial transactions efficiently. The speaker challenges the notion that CBDC would improve financial inclusion or cross-border remittances, as there is no evidence to support these claims. They suggest that CBDC could be used by governments to monitor transactions, impose negative interest rates, or directly tax customer accounts, which is why China may be interested. However, the speaker questions why the American people would need CBDC.

The ECB has given the green light for the digital euro, entering the preparation phase. This move aims to equip Europe with a future currency, while emphasizing that cash will still be available. The digital euro will offer consumers a convenient and free option for transactions across the euro area. However, it's important to note that these plans are subject to the legislative process.

Consensus believes that blockchain technology will play a crucial role in transforming the global payments infrastructure. They are partnering with central banks, retail banks, fintech institutions, and blockchain innovators to develop central bank digital currencies (CBDCs). CBDCs are a reimagined way for currency to operate on a fully digital infrastructure, where central banks issue money directly to individuals through e-wallets. The current financial systems are complex and inefficient, with settlement delays and increased transaction costs due to third-party involvement. CBDCs utilize smart contracts to instantly perform functions currently done by third parties, enabling central banks to drive monetary policy and offer innovative products and services. Consensus, as a leader in blockchain software, bridges the gap between the blockchain ecosystem and financial institutions, making them well-positioned to help embrace this new open financial system.

"We tend to establish the equivalence with cash, and there is a huge difference there." "For example, in cash, don't know, for example, who's using a $100 bill today." "We don't know who is using a 1,000 peso bill today." "A key difference in with the CBDC is that central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability." "And also, we will have the technology to enforce that." "Those are those two issues are extremely important, and that makes a huge difference with respect to what to what cash is."

The central bankers have a goal of introducing central bank digital currencies (CBDCs) and digital IDs. They used the pandemic as an excuse to push for digital IDs through vaccine passports, even though the justification wasn't strong. Their ultimate aim is to create a totalitarian control system with CBDCs connected to digital IDs. This would be the most extreme form of control in human history.

If we were to pursue a CBDC, it would have four key characteristics. First, it would be intermediated. Second, privacy would be protected. Third, identity verification would be required, meaning it wouldn't be anonymous. Fourth, it would be transferable or interoperable. We aim to strike a balance between privacy protection and identity verification, as is done in traditional banking today.

There is a significant difference between cash and central bank digital currency (CBDC). With cash, we don't know who is using specific bills, but with CBDC, the central bank has complete control over the rules and regulations governing its use. Additionally, the central bank has the technology to enforce these rules. These differences make CBDC distinct from cash.

The European Central Bank has approved the preparation phase for the digital euro, emphasizing that cash will still be available. The goal is to provide a free and convenient digital currency option for consumers across the euro area. The process will involve collaboration with European institutions, ensuring that Europe is equipped with the currency of the future. However, the implementation is subject to the legislative process.

There is a significant difference between cash and central bank digital currency (CBDC). With cash, we don't know who is using specific bills, but with CBDC, the central bank has complete control over the rules and regulations governing its use. Additionally, the central bank has the technology to enforce these rules. These differences make CBDC distinct from cash.

The speaker discusses Central Bank Digital Currency (CBDC), specifically the digital euro, and its upcoming introduction planned for 2029, noting that the European Parliament has some resistance. Rapporteur Naharete Rogas opposes the plan, arguing that the current design adds nothing for ordinary people, i.e., ordinary citizens like you and me. The speaker counters a common claim that CBDC is not a replacement for cash and that the digital euro is not programmable. The speaker argues that, by definition, central bank money can be programmable. The explanation focuses on how the central bank’s balance sheet works when money is spent. When the central bank issues money (spends), it increases its balance sheet. Cash sits on the right side of the balance sheet. To keep the balance, on the asset side there are government bonds (and potentially other bonds) that earn interest, which means the central bank collects money from society. The Dutch central bank has written in a report about design choices for a digital euro that the central bank can influence society by increasing the money supply, because it earns interest, a process often referred to as seigniorage. The speaker emphasizes that if cash exists in a given quantity and the central bank issues CBDC in addition to that cash, the central bank’s balance sheet grows. To prevent this imbalance, the only way to keep the totals equal is implied: every time you issue 1 euro of CBDC or even a 10-euro note in digital form, you would need to keep the physical cash in ATMs from being replenished or refreshed. Under the digital euro scenario labeled “scenario 4,” CBDC would thus be the replacement of cash, with the overall sum being kept in balance through this mechanism. The speaker concludes with “Dus dut,” underscoring that the outcome depends on how the total money supply is managed and whether CBDC is deployed in a way that maintains or replaces cash.

First speaker asks what happens if the government issues digital currency. Second speaker responds that they’re talking about central bank digital currencies (CBDCs) and acknowledges their appeal due to ease, but believes a lot will happen as this develops. Second speaker explains that with digital currency, transactions are easy, and it will be similar to money market funds in terms of practical use. A key question is whether CBDCs can offer interest. There is a debate on this; if CBDCs cannot offer interest, they may be less effective as a hold-in vehicle, since depreciation could make alternatives like money market funds or bonds more attractive. There will be no privacy with CBDCs, making them a very effective government controlling mechanism: all transactions would be known. This close surveillance could be beneficial for countering illegal activity but would also give the government substantial control. Examples include tax collection, the ability to take money, and the establishment of foreign exchange controls. These controls could be particularly challenging for international holders of CBDCs; for instance, sanctions could enable authorities to seize funds held by individuals in other countries. Privacy concerns relate to the possibility that politically disfavored individuals could be shut off. Second speaker reiterates that these privacy and control issues are part of the broader picture. He suggests that, for those reasons, CBDCs will not become a magnitude that changes everything; development will occur, but he does not expect CBDCs to be a huge deal in scale, even though growth is likely.

The speaker explains that there is a significant difference between cash and Central Bank Digital Currency (CBDC). With cash, it is unknown who is using specific bills. However, with CBDC, the Central Bank will have complete control over the rules and regulations governing its use, and the technology to enforce them. This distinction is crucial and sets CBDC apart from cash.

Many people are a little worried about what will happen to them with the digital euro. Can you encourage them? Why is the digital euro good for people like you and me? The digital currency, where it has been piloted, and there is only one which is clearly now launched in in a very small country, but it is piloted on a fairly large scale in in China, is of use and of service to all citizens. So it is not something that is good for the elite or is good for the young or is good for some versus others. If it is well done and if it is well implemented, it would be of service to all citizens.

The speaker discusses the analysis of Central Bank Digital Currency (CBDC) and its comparison to cash. They highlight a significant difference between the two: while cash transactions are anonymous, CBDC allows the central bank to have complete control over the rules and regulations governing its use. Additionally, the speaker emphasizes that the central bank will possess the necessary technology to enforce these regulations. These factors distinguish CBDC from cash and make it a unique form of central bank liability.