For those not already au fait with CBDCs, the Corbett Report runs through some of the main features.
Learn about the split circuit monetary system, how it currently works, and why a CBDC could demolish the split circuits, folding all of our money back into the Central Bank. Cash would in the extreme be eliminated altogether and everybody's individual account would be held at the central bank.
Well, we are talking about a variety of account types here (current accounts, savings accounts, loan accounts) - would they all be held at the central bank?
And if all accounts are held at the central bank, what functions (if any) would the commercial banks still provide? Or would they simply become branches of the central bank for all practical purposes?
With the bank knowing the purpose of every transaction, could they really control our spending according to their whim and fancy? Such a control system would be orders of magnitude greater than current banking systems, requiring massive investment and constant update to keep up with the meddling of politicians.
And even if all official monetary banking is folded back into the central bank, what would there be to prevent a not-a-bank commercial enterprise from launching their own not-a-currency token whose units are linked one to one to the central bank monetary unit, tokens that customers might hold (digitally or in a physical wallet) and spend as they please wherever they can find a trader who accepts such tokens?
" ... if they start tinkering like that it could well collapse their system of monetary control ... "
Could CBDCs be implemented in such a way as to prevent meddling (interest rate setting, money-printing) by the central banks?
What role will interest rates (if any) play in the new system? After all, if money were by any mischance to be backed by real assets (such as gold / silver / platinum / land (excluding buildings) then what need would there be for interest rates?
And thinking further out of the box - since land values always rise to reflect the prosperity of the region, what better way to back the currency than with something that ultimately reflects the value of a nation's joint endeavours? Would the same hold for other traditional monetary assets such as gold and silver?
And would such assets then become the property of the people? How would transitional arrangements work?
Prepare to dive deep into some of these impending possibilities ... forewarned is forearmed.