The Bank for International Settlements: The Digitalisation of Money

Another interesting report released earlier this year.



Abstract:


The ongoing digital revolution may lead to a radical departure from the traditional model of monetary exchange. We may see an unbundling of the separate roles of money, creating fiercer competition among specialized currencies. On the other hand, digital currencies associated with large platform ecosystems may lead to a re-bundling of money in which payment services are packaged with an array of data services, encouraging differentiation but discouraging interoperability between platforms. Digital currencies may also cause an upheaval of the international monetary system: countries that are socially or digitally integrated with their neighbors may face digital dollarization, and the prevalence of systemically important platforms could lead to the emergence of digital currency areas that transcend national borders.Central bank digital currency (CBDC) ensures that public money remains a relevant unit of account.


Conclusion:


The ongoing digital revolution and the rise of large tech firms present the possibility of a radical departure from the traditional model of monetary exchange. The structure and technology underlying digital networks may lead to an unbundling of the separate roles of money, creating fiercer competition among specialized currencies. The association of digital currencies with large platform ecosystems, on the other hand, may lead to a re-bundling of money in which payment services are packaged with an array of data services, encouraging differentiation but discouraging interoperability between platforms. Convertibility among monetary instruments and interoperability between platforms will be crucial in lowering barriers to trade and promoting competition. Digital currencies may also cause an upheaval of the international monetary system: countries that are socially or digitally integrated with their neighbors may face digital dollarization, and the prevalence of systemically important platforms could lead to the emergence of digital currency areas that transcend national borders. The rise of digital currencies will have implications for the treatment of private money, data ownership regulation, and central bank independence. For monetary policy to influence credit provision and risk sharing,public money must at least be used as a unit of account. In a digital economy where most activity is conducted through networks with their own monetary instruments, a regime in which all money is convertible to CBDC would uphold the unit of account status of public money.


Read the full report here:



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Please try and read between the lines and have a long reflective think on what the consequences of a centralised, controlled, digital economy means. It's a tyrants perfect weapon. It may not be used for malice straight away, but why give a future insane Hitler (Klaus Schwab) an opportunity to use it? The CBDCs do not, in any way, benefit you, me or our children.