Jose Sammut's avatar
Jose Sammut 3 months ago
The currency will be inflated, not reset. They want M2 to become M1, the banks will loose their liquidity. So another obstacle for small / regional banks, and another excuse for central banks to expand their balance sheet. The control aspect is further down the line, only once CBDCs are well established, and under the pretext of some emergency. Maybe with a competitive stablecoin market, this is less of a risk. Although your savings will be devalued anyways.

Replies (3)

Sid Shattuck's avatar
Sid Shattuck 3 months ago
Its an important distinction though. It's not "resetting the balance sheet". Bond holders get paid nominally in printed dollars. Capital controls ramp up.
Jose Sammut's avatar
Jose Sammut 3 months ago
Exactly! They're not going to launch a new currency at the expense of their reputation. That would never work.
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