Thread by @TheStalwart

I've been meaning to write a blog post for a long time about the very muddied discussion that's happening right now with digital currencies.

Thanks to @rohangrey's testimony today, I decided to write it. I see things much the same way as him. bloomberg.com/news/articles/…

@rohangrey My main theory is that the reason there's so much talk these days about CBDCs is because crypto is hot, and central bankers want in on the action.

But beyond that, there's a big difference between a digital bearer dollar (like cash) and just a public option for banking.

And as @rohangrey points out, the two things may in some way be complementary. But they're not at all the same thing. And yet they've become fused in the public discussion.

@rohangrey Also the conversation often gets fused into yet a third thing, which is that somehow if people had public accounts, then the Fed could just do fiscal stimulus independently. But ultimately that's a discussion about politics, as opposed to technology or infrastructure.

Anyway, definitely read @rohangrey testimony here financialservices.house.gov/uploadedfiles/…