Thread by @dgheim

So when ur tired of all of the NERDS nuking ur heads with charts, numbers etc..
We have cool guys also, aka me, with some fun & cool shit.
So what's CBDC ya' ll?
@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 1-CBDC vs Crypto?
Central Banks Digital Currency is a digital form of fiat money issued by CBs fundamentally Different from bitcoin or other crypto which lacks a legal gov tender backed by suitable amount of Gold or FX.

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 2-Common denominator: both CBDC &crypto are blockchain based: digital ledger that allows Txs to be recorded and accessed in real time by mult. parties. CBDC doesn’t follow tokenomic metrics but rather normal money theory. Its a mean of payment, unit of account & store of value.

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 3-CBDC vs Electronic cash?
CBDC is not a rep of physical money hold in a bank or on a pre paid card or digital wallet (Visa,Paypal).Its a total replacement of notes, coins and cheques.

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 4-Why CBDC?
Protection of money as public utility, safety of payments etc are all straight forward pros.
Monetary policy transmission & keeping seigniorage income are interesting benefits

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 5-Monetary policy
CBDC could allow a direct monetary policy channeling to control money supply and velocity rather than using interest rates,etc leading to a full banking reserve system.

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 6- Seignorage income
the disappearance of physical cash mainly due to electronic one could eventually eliminate profit made by CBs for printing/issuing money, CBDC could protect this source of income

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 7-Risks
Reliability(internet connection),Geog limitations(only used locally),Cybersecurity are all obvious risks hindering the adoption of CBDC.
Competition for commercial banking is interesting to follow.

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 8-CBDC & commercial banks
this substitution for bank deposits could motivate banks to raise deposit rates which might lead to a shift from deposit funding to wholesale funding. Wholesale funding is when banks seeks deposits outside the normal customer/retail bracket(gov,funds

@lebfinance @AndyKhalil1 @HuseinNourdin @AzarsTweets @Mohdfaour89 @nafezouk @AdibChristian @wael_atallah @EHSANI22 9- Finally a nice infograph for you to hang on ur fridge: