Canada Central Bank Digital Currency

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jcdenton
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Canada Central Bank Digital Currency

Post by jcdenton »

Global News reports "Canada may need to create a digital currency to remain current"
https://www.youtube.com/watch?v=ldAtxgTvTn0

That is 100% false. This is a lie fed to you by the government. You don't need a digital currency just because another country makes one.

My thoughts on this:
ALL transactions will be digital and tracked. They want to phase out cash, and replace it with a digital payment system. Its a terrible idea because your money will only ever lose value, just like current fiat currency. Also, if the government doesn't like you, they can just turn your chip off. If they do like you, they can add money to your account. Its just 1's and 0's on a computer, its worthless. Nobody should hold this much power, to create and destroy money as they please. Giving a single entity control over the money supply is extremely dangerous for society, the potential for abuse is too great. A Central bank digital currency will only ever lose value over time, just like our current fiat system due to monetary inflation. Only decentralized digital currencies will ever work because they cannot be manipulated by any single entity.

What are your thoughts?
Even Steven
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Re: Canada Central Bank Digital Currency

Post by Even Steven »

jcdenton wrote: Jun 21st, 2021, 8:47 am Its just 1's and 0's on a computer, its worthless.
You mean like every single bank/investment/savings/credit/debit/visa/mastercard/utilities account in the country?
jcdenton
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Re: Canada Central Bank Digital Currency

Post by jcdenton »

Even Steven wrote: Jun 21st, 2021, 8:49 am
jcdenton wrote: Jun 21st, 2021, 8:47 am Its just 1's and 0's on a computer, its worthless.
You mean like every single bank/investment/savings/credit/debit/visa/mastercard/utilities account in the country?
Yep, except just taking it one step further, and making it that much easier to manipulate, and control the value of each individual's wallet. They want to phase out cash, which is honestly not worth that much to be honest, but at least it is physical and can't be deleted by some centralized invisible entity.

You see, its not that digital currency is bad. Its that a CENTRALIZED digital currency is bad. Because any centralized currency can be manipulated by the entity which controls it. They can just create more out of thin air and give it to themselves, or to their crony buddies. This is why the economics concept called the Cantillon Effect comes into play.

In contrast, Decentralized Digital Currencies cannot be manipulated by any single entity. They require 50%+ consensus to agree on the blockchain's current wallet value and holder
Even Steven
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Re: Canada Central Bank Digital Currency

Post by Even Steven »

jcdenton wrote: Jun 21st, 2021, 8:53 amThey can just create more out of thin air and give it to themselves, or to their crony buddies.
Uhm...what stops them from doing so right now? Why is it not happening now?
jcdenton
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Re: Canada Central Bank Digital Currency

Post by jcdenton »

Even Steven wrote: Jun 21st, 2021, 8:58 am
jcdenton wrote: Jun 21st, 2021, 8:53 amThey can just create more out of thin air and give it to themselves, or to their crony buddies.
Uhm...what stops them from doing so right now? Why is it not happening now?
It is already happening right now. In fact Canada is experiencing really bad inflation right now, due to the printing of new currency. Roughly 20% of all US currency in circulation was created in 2020. That means all US citizens money lost 20% of its values in 2020. And look who they handed it out to, mostly big corporations, not individuals. You are right in that it isn't a drastic change from what we already have, but its one step further downhill. But the Bank of Canada is acting like centralized currencies are the answer to many of societies currency problems, when better decentralized solutions already exist

Notice how China just made their own centralized digital currency and then BANNED bitcoin? Think about that for a moment. Why would they ban Bitcoin unless they knew it was a threat, and that they had corrupt intentions for their own currency? That will happen here too if people let it. Centralized currency is owned by banks. Decentralized currency is owned by people.

Also, as they phase cash out and you are no longer able to take out cash from an ATM, it means you will always be at risk of losing 100% of your money if the bank fails. When you deposit your money in a bank, and that bank becomes insolvent, they will use YOUR deposits to recapitalize themselves. Your deposits into a bank are UNSECURED DEBT. You get nothing if the bank fails, and there is nothing you can do about it. It doesn't matter that you money is insured by the federal government, because the federal government only has roughly 6% of all circulated money in actual assets to back you with.
So for every $1 dollar you deposit, you might get back 6%.

It is now illegal in France to make cash payments of over $1000.... https://www.forbes.com/sites/jonmatonis ... 1a42304cd6
BC Landlord
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Re: Canada Central Bank Digital Currency

Post by BC Landlord »

jcdenton wrote: Jun 21st, 2021, 8:47 am Only decentralized digital currencies will ever work because they cannot be manipulated by any single entity.
Not sure what you meant by "decentralized". If it's not government's, it's just someone else's computer. Any entity could be persuaded to do government's biddings. Twitter and FB being living examples.
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jcdenton
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Re: Canada Central Bank Digital Currency

Post by jcdenton »

BC Landlord wrote: Jun 23rd, 2021, 2:00 pm
jcdenton wrote: Jun 21st, 2021, 8:47 am Only decentralized digital currencies will ever work because they cannot be manipulated by any single entity.
Not sure what you meant by "decentralized". If it's not government's, it's just someone else's computer. Any entity could be persuaded to do government's biddings. Twitter and FB being living examples.
No it doesn't work quite like that. Decentralized currencies require every computer running the nodes to "agree" on the blockchain. This is hundreds of thousands, even millions of computers. And anyone can join their nodes and leave them at any time. It requires 50%+ majority to agree, that is how the decentralized model works.

Centralized currency is the opposite, it has just a single node, controlled by a single entity (in the case the government, or the Bank of Canada), and they have absolute and total control over every wallet, the supply of the money, and the the contents of each persons wallet. They, and they alone, can manipulate the value as they see fit. This is not possible in a decentralized model without a majority in agreement.

The people who created bitcoin knew this, that is why it was made to be decentralized, to prevent unwanted manipulation by another person.
Last edited by jcdenton on Jun 23rd, 2021, 4:06 pm, edited 1 time in total.
BC Landlord
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Re: Canada Central Bank Digital Currency

Post by BC Landlord »

^^ Thanks for the explanation. Didn't know that. :up:
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