money

Central Bank Digital Currency

(CBDC) is the digital form of a country's fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or account backed by the full faith and credit of the government.

Why?

Address consumers' fears about fraud and data security. Educate merchants in all channels, both online and brickand-mortar, about the cost benefits of payment innovation. Develop payment strategies that solve problems for consumers. Integrate rewards programs into apps to encourage usage, which builds trust. Work with policy-makers to develop a regulatory framework that reflects the changing digital payment environment.

Mobile wallets

Although some countries— notably emerging markets—are embracing mobile wallets, adoption is uneven, and longheld myths about cash persist

Coinbase

Based in San Francisco, first cryptocurrency went public on the U.S. stock market.

Base money

Cash held by households, firms, and banks, and the balances held by commercial banks in their accounts at the central bank, known as reserves. Base money is the liability of the central bank.

Sweden and Cash

Cash services decreased significantly in China

Why is CBDC different than my credit card?

CBDCs are the liability of the central bank, which means the government must maintain reserves and deposits to back it up, rather than a private bank.

Bitcoin

Can't be frozen or tracked, no tax. Easy to store, difficult to fake. Profit by exchanging with real currencies. Consumes more electricity than Switzerland (increases global warming too)

Lydian Lion

Coin created in Turkey (lydia then) with electrum (gold and silver)

Developing and developed countries

Consumers in developing countries are more comfortable with mobile payments In developing countries, people believe mobile money improves their purchasing experience and in developed countries many people think mobile money is less secure than physical wallet.

Countries which believe in cash

Except in places like Kenya and Brazil, where crime rates are high, people all over the world remain convinced that cash is the safest form of money. Faith in cash is extremely high in Japan, where about three-quarters of consumers deem it the most secure option, and in Germany, where around two-thirds feel the same. For the US, the figure is just under half.

Barter economy

I might exchange my apples for your oranges because I want some oranges, not because I intend to use the oranges to pay my rent. Money makes more exchanges possible because it's not hard to find someone who will be happy to have your money (in exchange for something), whereas unloading a large quantity of apples could be a problem. This is why barter plays a limited role in virtually all modern economies.

Trust

For money to work, people must trust that others will accept your money as payment. Governments and banks usually provide this trust.

Why global corporations and individuals use forex

Global corporations use forex markets to hedge currency risk from foreign transactions. Individuals (retail traders) are a very small relative portion of all forex volume, and mainly use the market to speculate and day trade.

money

The 'because' is important and it distinguishes exchange facilitated by money from barter exchange in which goods are directly exchanged without money changing hands.

Why forex is used

Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.

Bank money

Money in the form of bank deposits created by commercial banks when they extend credit to firms and households. Bank money is the liability of commercial banks.

China digital payments

Mostly use Alipay and WeChat pay 60% use digital financial services daily

Broad money

The amount of broad money in the economy is measured by the stock of money in circulation. This is defined as the sum of bank money and the base money that is in the hands of the non-bank public.

Future

The future is mobile, and that's where we think all merchants need to be

But don't digital currencies already exist? CBDC

There are already thousands of virtual currencies, commonly called cryptocurrencies. These could be centralized, but they are not from the government - think of Facebook's Libra. The fully decentralized version is bitcoin and its competitors. Cryptocurrencies run on distributed-ledger technology, meaning that multiple devices all over the world are constantly verifying the accuracy, not one central hub.

How England's bank dealt with the issue of notes

They decided that the deposit of coins would be acknowledged in three different ways: •Issuing a Running Cash Note, as a receipt payable to the depositor or bearer which allowed full or partial withdrawal •Annotating a piece of paper or book held by the customer, similar to recent passbook accounts •Acting on the depositor's instructions to pay a third party, similar to a cheque process

Running Cash note

dated 18th June 1697 and represents a deposit of £22; this is the earliest known running cash note. It is entirely handwritten.

Who are major players in forex market

financial institutions like commercial banks, central banks, money managers and hedge funds.

The foreign exchange (also known as FX or forex) market is a

global marketplace for exchanging national currencies against one another.

Ying Yuan

gold from China

Facebook's Libra currency

money transactions. stable coin. blockchain.

Successful and slow-growing firms

successful firms are more likely to have partnerships with companies like PayPal, Alipay, Apple Pay, or M-Pesa than slower-growing companies Fastgrowing companies are also significantly more likely to sell their goods and services online (79%, vs. 64% of slowergrowing companies)

Why would a government get into virtual currencies?

•The cost of managing and transferring cash is high and this technology can reduce expenses; •financial inclusion means those who are unbanked can get easier and safer access to money on their phone; •private companies need competition so they meet transparency standards and limit illicit activity; •monetary policy can flow more quickly and seamlessly through CBDCs.

So what's the downside? (cryptocurrencies)

•There are several, and each one needs careful consideration before a country launches a CBDC: •citizens could pull too much money out of banks at once and purchase CBDCs, triggering a run on banks; •centralizing through the government a system designed to be private may produce a backlash among users and create cybersecurity risks; •our regulatory processes are not updated to deal with the new forms of money.