No matter how easy the CB make monetary conditions they can't generate that required boost to activity which would be reflected in a 2% inflation
In a world where money had been reduced to its essential function of being a medium of exchange the CB will be endeavouring to ensure that there is no hoarding of money - if necessary by negative interest rates even for the populace.
I see a brave new world where it would be perfectly consistent for the CB to be charging punters 4% on their money whilst banks are paying 2% on deposits and entrepreneurs are paying 5% to bank
Holding bitcoin directly or via a fund is simply not within the NTMA's legal mandate.
Primary legislation is rarely simplea simple rule change in legislation
Primary legislation is rarely simple
An SI is not primary legislation.
AFAIK the NTMA act doesn't provide for such type of SI.
You obviously missed my whole point. I was talking about a world where there was no cash. I won't bother delving too deeply into the rest of your post as it seems, as others have remarked, that you are a tad out of your depth on these matters. Stick to the UI debate, easy stuff that.Negative interest rates will induce hoarding, in cash.
I was talking about a world where there was no cash.
That aside, it could only ever happen if CBDC operated within the parameters of a monetary system that is not, or could not, be subject to 'policy' change.
I won't bother delving too deeply into the rest of your post as it seems, as others have remarked, that you are a tad out of your depth on these matters.
If memory serves, there are a couple of states in the US that will accept payment in crypto - alongside the canton of Zug in Switzerland. That said, I wouldn't let that concern you too much. You can now organise to receive payments in crypto without the payer having to mess about with that conversion - through services like Jack Maller's Strike. They can also send your crypto and convert it with little slippage - and the tax man (or whomever else) gets paid. Slippage is going to decrease when it comes to exchanging between digital assets and between digital assets and fiat (soon enough to become purely digital).I heard Tesla was going to pay it's tax bill in btc.
(Sorry for tongue in check replies)
That is what my whole last few points were about. The real possibility that we could dispense with physical cash and its implications for monetary policy.Ok, I missed that point.
The real possibility that we could dispense with physical cash and its implications for monetary policy.
Wolfie I am trying to open your mind. You are obsessed with money's store of value attribute. People are understandably wobbly on that aspect these days and so look for alternatives such as bitcoin. But try and picture money as purely a medium of exchange, a unit of account, a ledger recording your debits and credits in the daily exchange for goods and services. Nobody in their right minds holds it as a long term store of value. Why? Coz the people who supply it have stated their aim to ensure it loses value at 2% per annum. Any surplus money available for savings should be immediately used to purchase investments/assets.Without that, there will always be a demand for alternative money.
Nobody in their right minds holds it as a long term store of value. Why? Coz the people who supply it have stated their aim to ensure it loses value at 2% per annum. Any surplus money available for savings should be immediately used to purchase investments/assets.
The NTMA's investment mandate is here. I don't see how a virtual asset that pays no interest that has a material chance of being worth zero in the medium term is consistent with that mandate.I wasn't suggesting they could now, but given they invest in Equities etc that they could get approval to invest in BTC.
The NTMA's investment mandate is here. I don't see how a virtual asset that pays no interest that has a material chance of being worth zero in the medium term is consistent with that mandate.
Bitcoin has had spectacularly negative returns over certain time horizons too.It's hard not to see how a virtual asset, appreciating on average 200% a year, over the last 10yrs
Ireland does have its store of gold, but it is held with BoEngland.
If an Irish state entity ever purchases bitcoin it will be the Central Bank
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