Bank of England to explore a potential Central Bank Digital Currency

Re:Bank of England to explore a potential Central Bank Digit... by thehappypm on Monday April 19, 2021 @04:45PM (#26867769)

Though this is intuitive it's not really true in a real sense because it's trivially easy to avoid this "tax". Any asset -- down to a humble CD -- will beat inflation. However, assets increasing in value also increases tax revenue due to capital gains!

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Re:Bank of England to explore a potential Central Bank Digit... by mandelbrotwurst on Monday April 19, 2021 @06:54PM (#26868771)

1 year CD rates are currently about .65% in the US - well below inflation even if you’re talking Core CPI only.

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Re:Bank of England to explore a potential Central Bank Digit... by thehappypm on Tuesday April 20, 2021 @08:49AM (#26873855)

Just looked and yeah, this is not a good moment for CDs (or high-yield savings accounts). I used to get over 1% from my Ally bank savings account. I suppose you can't beat inflation with CDs or savings accounts right now, though in a higher-interest environment you certainly could.

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Re:Bank of England to explore a potential Central Bank Digit... by mandelbrotwurst on Wednesday April 21, 2021 @11:10AM (#26890666)

> in a higher-interest environment you certainly could

Maybe, maybe not - it's possible for interest rates to be high and inflation to be even higher (stagflation).

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