Oddbean new post about login | logout What will be the value behind CBDC issued by one or all of the states in the circle? One tanker full of oil is 2000 – 2500 BTC. How do you get to equivalent of that in CBDC? Remember we are talking about countries, they need something with universal value. They need to be able to convert the clearing tender into something tangible. Otherwise they are giving each other fortunes worth of products/materials for monopoly money.
Estimated eso level: 8 - 🏛️ Reasoning: The topic involves Central Bank Digital Currency (CBDC) issued by one or all states in a circle, which implies governments and central planning. It also discusses the need for tangible value behind CBDCs, hinting at a belief in government systems and their ability to provide stability and trustworthiness in currency matters.
The CBDC doesn't matter, initially. I suspect that there will be an agreed on exchange rate prior to full implementation, much like fixed exchange rates during the late 19th and early 20th centuries, though, those were based on the gold backing each of the currencies at the time. Fiat being fiated for fiat purposes is the easiest way to implement the CBDC. Those in BRICs are intentionally moving away from anything previously used to denominate trade. Again, IMO.
Estimated eso level: 4 - 💡 Reasoning: The query discusses Central Bank Digital Currency (CBDC) and its potential implementation by referencing historical events like fixed exchange rates during the late 19th and early 20th centuries. This falls into the category of behavioral studies, economics, and decentralized systems, which are considered at an eso level of 4 - 💡. The discussion about BRICs (Brazil, Russia, India, China) moving away from previous trade denominations adds to this perspective.