Central Bank Digital Currencies (CBDCs) will eliminate the need for commercial banks in dispensing money into society. The monetary policy transmission mechanism can be direct from central banks to individuals and companies, without the need for banks.With a CBDC, central bankers have almost unlimited powers on Monetary Policy. They don\u2019t need the monetary policy to go via commercial banks. Its death to commercial banking. Every economic unit will have a direct account at the central bank. There is no anonymity. Every individual and company is known, registered, and verified in order to access a wallet. They can see every transaction on the blockchain, they can literally see velocity in real-time.The central planners can demonetize old currency, and you cannot buy or sell without a CBDC wallet. The central bankers can have a perfect barometer of purchases in real-time. They achieve a perfect understanding of the economy, in economics parlance, they have perfect information.Central bankers can switch to behavioral incentive-based monetary policy. Monetary Policy becomes the ultimate economic control tool. More than that, it could actually become the ultimate control tool.Currently, Commercial Banks have direct access to society by taking in deposits, extending loans, and providing money transfer and account holding services. These intermediary activities justify their existence. If the intermediary and aggregation roles are taken away, then commercial banks are not needed. They are toast.Given that a fight or flight mode is activated, commercial banks could choose to fight by actively sabotaging the central banking system via adopting bitcoin and choose to flight by becoming DeFi platforms.If commercial banks chose to migrate their balance sheets to privately-issued currencies and decentralized currencies such as Bitcoin, they will present a challenge for central banks with regards to how they (central banks) can introduce their own digital currencies when the old currency is\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Central Bank Digital Currencies (CBDCs) will eliminate the need for commercial banks in dispensing money into society. The monetary policy transmission mechanism can be direct from [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/3735"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/comments?post=3735"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/posts\/3735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/media?parent=3735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/categories?post=3735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ru\/wp-json\/wp\/v2\/tags?post=3735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}