Central banks should consider issuing digital money, IMF’s Lagarde says

Central banks should consider issuing digital money, IMF’s Lagarde says. By Elizabeth Schulze.

Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde. …

Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper notes. …

Deposits held in commercial banks are already digital, but a digital currency might be backed by the government in the same way cash is today, Lagarde said. Digital currencies could come in the form a state-backed token, or through an account held directly at the central bank. …

“The advantage is clear,” Lagarde said. “Your payment would be immediate, safe, cheap, and semi-anonymous.”

Only the government would know! Now isn’t that reassuring.

The push for a cashless society continues. Great power would flow to those who controlled society’s money — negative interest rates, social engineering, special treatment or demerits to nudge disagreeable people, transfers to identity groups deemed worthy, etc.

Who would dare disagree with the government, when they can alter your money account at will and there are no alternatives? They would have a monopoly on money.

hat-tip Philip Barton