AFJM Coffeehouse Study Stack

TOPIC: "Central Bank Digital Currency: Friend or Foe?"

with Ben Rininger

Content: Links / Introduction / About the Speaker / The Study Stack / Appendix
Recording of the May 24 Coffeehouse is here
PowerPoint Presentation is here

Ben Rininger demonstrated why he was a great choice to be the intern for AFJM. His article and PowerPoint presentation were thought-provoking explorations on this rapidly evolving innovation of money, and the potential impact on the monetary reform movement. Will it replace just ‘pocket-book’ cash, or replace all cash? Economist Michael Kumhof has the latter in mind when he calls CBDC the little cousin of the Chicago Plan.

Ben began his presentation with the goal of answering these specific questions about Central Bank Digital Currency: What is it? Why should the average person care about it? What is its significance in regard to sovereign money reform? Should we at the Alliance support it?

We learned the answers have variations and options and many issues to be decided related to security, privacy and energy usage. He reviewed the advantages and disadvantages to such a system. He made many thought-provoking intriguing comments that nudge supporters of The Alliance to investigate the potential of CBDC: that regular citizens could be the first users of new money and that Helicopter money does not have the cost of interest.

Rininger, Benjamin. 2021. "About Myself and My Politics (introducing myself to the Alliance)". The Alliance For Just Money, 29 Jan 2021.
A. Sources written by or mentioned by Ben Rininger
Rininger, Benjamin. 2021. “
Central Bank Digital Currency: Friend or Foe?. The Alliance For Just Money, 7 May 2021.

Rininger, Benjamin. 2021. “Inflation Targeting Under the NEED Act: 0 or 2%?”
. The Alliance For Just Money [Forthcoming].

Rininger, Benjamin. 2021. “Regarding H.R. 6553—The Automatic Boost to Communities Act”
. The Alliance For Just Money [Forthcoming].

Rininger, Benjamin. 2021. “Summary of S. 2755—The Postal Banking Act”. The Alliance For Just Money [Forthcoming].

Rininger, Benjamin & Schuller, Govert. 2021. “The Sovereign Money System: What to Expect”
. The Alliance For Just Money [Forthcoming].

B. Sources mentioned by participants (also in the chat & found by editor)
A Bank of Spain paper on CBDC which leans to a Chicago Plan vision, which would incrementally replace what the Plan would call 'check-book' money with CBDC, while permitting the financial structure to adapt without severe disruption to the economy.

The Future of Money and the Central Bank Digital Currency Dilemma (PDF)

Michael Hudson has a similar vision. He supports the Chicago Plan and the Need Act, and believes the Chicago Plan should be part of MMT.

The Toronto Rotman School of Business has been involved in a series of presentations on Digital Currencies. The latest presentation added the view that digital currencies can greatly
reduce the costs of payments systems, and that even the private systems are not fully anonymous. The courts could permit following the digital trail.

There were three papers covered in an earlier Rotman presentation:
A Proposal for a Canadian CBDC: Model X Final Report
Canadian Cash for a New Global Economy (PDF)
Canadian Cash for a New Global Economy
This is a Youtube introduction by one of the authors, Andreas Parks.

Appendix A:
Typology of currencies in Spanish-speaking and Portuguese-speaking countries
  • Eurozone (Spain / Portugal): need to coordinate strategies with other Euro-zone countries (Austria, Finland, Germany, the Netherlands etc.)
  • US, Puerto Rico: coordination with AFJM
  • (Almost) dollarised countries or countries whose money is backed with dollar / euro (Ecuador, El Salvador, Panama, Cape Verde, Equatorial Guinea, Guinea Bissau, São Tomé and Príncipe, Timor Leste): Sand Dollar in the Bahamas is very interesting. Other similar countries / economy: CFA Franc countries (Africa), Middle-East. Hong Kong, Cambodia etc.)
  • Countries with its own stable national currency (Brazil, Chile, Colombia, Mexico, Peru etc.): Other similar countries / economies: Malaysia, South Africa
  • Countries with its own unstable national currency (Argentina, Cuba, Venezuela): People distrust national currency and only trust US dollar. A proposal should be made like the Petro in Venezuela, but it should count with international warrant so people do trust this money.

Caveat: The views and opinions expressed in AFJM Coffeehouses are those of the presenters and participants and do not necessarily reflect the official policy or position of the Alliance of Just Money.
This Study Stack will also be available
in the AFJM

AFJM is an organizational member of the 
 International Movement for Monetary Reform 

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