We've got other threads going about the dangers of making civilization dependent on single sources, and here we want to take all the individual decision making of people with cash, and put it all in one centrally controlled basket?
What dictator wouldn't absolutely love that kind of power?
Central banks have a lot of control over the money supply, but the current system doesn't allow for direct, low-friction control over individual's bank accounts or give the government a perfectly transparent view into your transactions.
Digital currencies promise a future where the government has immediate, perfectly ubiquitous veto power over every transaction, and can adjust interest rates at an individual level.
I would argue its a tool that can be used for good or bad. Yes a dictator would love it, but a democrat (not the party) might too: e.g. it becomes much easier to develop and implement balanced tax systems and catch evaders.
But you normal fiat is already digital and tracked and in most cases the gov has or could gain access to that data. This however is not the goal of such a "govcoin". CBDCs is to remove clearing (settlement) and make it real-time.
Not true, some CBDCs are retail CBDCs that target end consumers.
Settlements can already be real time with RTGS systems (real time gross settlements) but
1. Not all central banks have that
2. Not every country has a central bank and not every central bank has an account with the central bank of central banks (BIS)
3. Even then, not every bank has an account with your central bank
A CBDC is a thus a more modern protocol that is easier to integrate (and that has nothing to do with cryptocurrencies) and a more secure system where no single point of failure exists due to some degree of decentralization (that’s the part inspired by cryptocurrencies).
What dictator wouldn't absolutely love that kind of power?