[Cryptography] Am I missing something about CBDC ?

[Alexander Kjeldaas]

The point is to have money with no counter party risk.  If you can have
that,  then we can get rid of government insuring deposits of commercial
banks.  Then we can let banks fail more easily.
Banks can still do payments, but need to settle MY money once a day like
they do with each other.

On Fri, Dec 18, 2020, 22:42 John Levine <johnl at iecc.com> wrote:

> From: John Levine <johnl at iecc.com>
> To: cryptography at metzdowd.com
> Subject: Re: [Cryptography] Am I missing something about CBDC ?
> In-Reply-To: <
> AM0PR01MB59052340FEDE5A31C09B5FCEC4C30 at AM0PR01MB5905.eurprd01.prod.exchangelabs.com
> >
> Organization: Taughannock Networks
> Cc: bizbucaliyiz at hotmail.com
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> In article <
> AM0PR01MB59052340FEDE5A31C09B5FCEC4C30 at AM0PR01MB5905.eurprd01.prod.exchangelabs.com>
> you write:
> >Turkish Banks already have a system that transfers money (with almost no
> limit) between accounts from same bank.
> >Also you could transfer up to $150-200K worth money in national currency
> to any other national bank with little to
> >none fee during business hours. Now they have upgraded the infrastructure
> and allows instant transfers between
> >accounts from different banks 24/7.
> >
> >While that technology exists and already field tested, I doubt that the
> central banks would want to have a CBDC to
> >provide that functionality.
>
> Again, maybe I'm missing something, but a CBDC has nothing to do with
> transfers among bank accounts.
>
> Here in the US we have ACH interbank transfers which are reliable but
> slow, a couple of days, and have limits that vary wildly among banks;
> one bank I used to use limited them to $1000/day, another one lets me
> send $350,000/day. The Fednow service I mentioned a few messages back
> is supposed to make that realtime for transfers up to $20K. None of
> this has anything to do with CBDC or bearer tokens. It's ordinary bank
> account transfers like Phill described.
>
> Hence my confusion about what problem CBDC is supposed to solve or
> what privacy and security features it would have. Depending on who you
> ask it's banking for the underbanked (who nonetheless have a smart
> phone and reliable mobile data or wifi), or maybe it's an electronic
> version of cash for anonymous mostly irrevocable transcations. Or
> maybe it's something else.
>
> Read the paper and see if you can figure it out.
>
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