, 5 tweets, 2 min read
There's so much wrong with this piece from @tylercowen but I wanted to focus on a few key elements.

1) most CBDC proposals talk about ways of controlling how much CBDC is issued or providing central bank credit to fill in the gap. No inherent reason why CBDC reduces lending 1/N
Now Central Banks may need to revisit their collateral frameworks,as Ulrich Bindseil says in this paper researchgate.net/publication/33…, but they should already be doing that!As my colleague @rohangrey argues, this is an opportunity to revisit our social contract with chartered banks 2/N
2) His discussion of CBDC and online payment processors is completely backwards. Mobile company operators who make payments on behalf of their customers **want** CBDC precisely so they aren't regulated like banks. They don't want to be issuing bank-like IOUs. 3/N
with CBDC, there is essentially "cash" in your "digital wallet" and thus money transmitters will have bailment obligations to their customers and will be regulated as transmitters but will be MORE CLEARLY distinguished from banks (another key point of @rohangrey's research). 4/N
This is an opportunity to more clearly delineate why we are franchising out the ability to create money to financial institutions and for what social purposes. It doesn't have to involve any more centralization than we have now, and can in fact be used to decentralize. 5/5
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Nathan Tankus

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!