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21 sats \ 3 replies \ @OT 20h \ on: China to Pay Interest on Digital Yuan in Bid to Boost Adoption - E-CNY econ

This is the CBDC play. Give consumers a nice interest rate, coupons or bonuses to onboard. In China the average person doesn't seem to have much concern for privacy so I think it has a chance of working if the interest rate is high enough.

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21 sats \ 2 replies \ @spiderman 18h

If the interest is not coming from borrrowers who pay interest then it is just numbers on a mobile screen, in other words, monetary stimulus.

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21 sats \ 1 reply \ @OT 17h

The control and surveillance gains would be totally worth it for them.

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21 sats \ 0 replies \ @spiderman 17h

Not just that, they are actually desperate to jump-start their economy and sustain the bubble by monetary stimulus, so the new high interest rate (credited to the wallet, just numbers on a screen, no need of even paper and ink to print) would be an ideal channel for monetary policy transmission. A Keynesian's wet dream.

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