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Xavier Moss's avatar

I'm so glad you said the dollar was already largely digital, I was sure that was true but constantly wondered if I was missing something.

That said, would a general federal money app be useful, even denominated in normal dollars? For example, set one up for each SSN number, then you can transfer money to it for stimulus, tax refunds, etc. If I've interpreted the news correctly – and I'm not sure I have – American stimulus cheques were actual, physical paper cheques, which seems crazy in the 21st century.

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Auros's avatar

As I've said before, distributed blockchains, always and everywhere, take things that would work better if you had a trusted central authority, and then either make the system radically more expensive in energy and time (proof of work), or codify "my money works for me" (proof of stake). The "problem" that distributed blockchains are trying to address _is not a problem_. A chain of trust that ultimately reaches an entity that can be small-d democratically governed, that is answerable not just to those with wealth but to people who _don't_ already have a ton of money, is Good, Actually.

That said, postal banking also would be a good idea. And Felix Salmon has written for years about how digital payments ought to clear at par. And in that sense, a digital dollar operated by the Fed as a utility that's free to the public would be great.

Add on to this: Once you have everyone universally banked, you can start doing things like implementing UBI by way of just incrementing everybody's digital dollars account once a week. And you can do fiscal expansion and contraction by changing how much the UBI gives out.

Furthermore, you can create a Sovereign Wealth Fund that sits off to the side of the postal accounts, and implement Cory Booker's Baby Bonds concept by giving people shares in that. You also could scrap the 401(k) and all of its relatives (which have largely served to enrich the financial companies that operate the accounts for exorbitant fees) and just default everybody into an IRA that goes into a target-date tranche of the SWF.

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