Private Sector Controlling The New Money Systems.

[worldtraveller321]

With the creation of Bitcoin and other digital money systems before this and afterwards. All of this was created in the private sector. Traditionally most of the fiat money systems were run and created by some branch of a government or public system.

With this possible change of possible hands of where the money gets run and created from what are your thoughts on a private entity creating and controlling a new money system.

Sure many of you may have lost confidence in the public system of money.
What factors give you confidence in having the private sector control a new money system.

Some of these private sectors are corporations too. Business as well, so more less to keep their money system in check, they have to figure ways to earn from the system. More less maintain a profit at least for the business to stay in business.
Those are some of the things one must think about when moving the money system to private hands.

With having the money in the public system. It is more on controlling the money as a service. Therefore no profit margin is needed when it comes to creating and controlling money in public system.

With private sector the system is a different playing field.

What factors would you need to maintain confidence in the private sector in creating and controlling a new money system? Thoughts

[franky1]

chinas CBDC is where the PBoC smart contract(multisig) a tx of trillions with uxto's that splits the funds up with half a dozen corporate payment service businesses. where the PBoC and the half dozen corporate services each sign to agree on the value locked and the split of funds

these corporate 'banks' then set smart contract(multisig) between each other to share reserves to use as payments between each other

while also having some value sectioned off internally for its customers

they each have there own wallets.  
and
there own databases of customer info.
(the corporate/commercial payment services(banks) hold the customer data not the government)

they each have 3 tiers of wallets
if you use a 'basic'(bottom tier) wallet you can only accumulate upto X amount, but not required to give KYC. if you accumulate more you have to upgrade to the next wallet that offers more services but asks for KYC
and if your accumulate a substantial amount or are a business you require the top tier wallet that offers more services but requires more detailed kyc

..
the idea is payment service businesses(banks) store the KYC info (not PBoC) and the businesses do the regulated functions of flagging suspicious behaviour, watching for laundering and fraud.
they are not interested in the petty stuff of small amounts so they dont care about tracking and monitoring the small payments of things such as weekly minimum wage amounts.

as for the larger amounts the payment service businesses 'banks' will swap KYC info(top and second tier) with the other businesses when payments are made between businesses and the corporate banks.
and can sell that data to data farmers.

but the PBoC wont have access to this database or individual payment data of users.
the corporate banks will raise suspicious activity reports on flagged stuff they know to look suspicious which the PBoC would look at and then request the details of the reported activity of that customer if they have evidence there is actually a possible(suspected crime) occurring

..
china's CBDC regulation is not the 'spy on everyone at government level' propaganda that media racially profile china as doing. its actually nearly the same regulation as what the US have been doing in recent decades(get businesses to monitor their customers because government dont have the employee's time resources to 'watch everyone'
..

just like todays debit cards. that dont offer any 'savings interest' but do offer 'cashback on certain purchases' this is done by selling your 'bank statements' to retailers/businesses where by the commercial banks get paid for your data and they give you some allotment of cash back from that sale

..
so now you know the design of china's CBDC (its not a blockchain) and who/what/when certain entities have their data

[odolvlobo]

With this possible change of possible hands of where the money gets run and created from what are your thoughts on a private entity creating and controlling a new money system.

Many people might not realize it, but the Federal Reserve is a private entity. The government has very little control over it.

[pooya87]

What factors would you need to maintain confidence in the private sector in creating and controlling a new money system?

It depends on the result.
We have PayPal that is a payment system created by the private sector and is 100% centralized and yet people use it despite all of its flaws and weaknesses.
Then we have Bitcoin that is 100% decentralized and is not controlled by anybody and people use that too.
Then we have shitcoins that are centralized or semi-centralized and are only used to be pumped and dumped and yet people use them too.

It all comes down to utility and what people are looking for. If they are looking for financial sovereignty bitcoin is the choice, if they look for a quick buck at a very high risk shitcoins are the choice, and if they want traditional systems then the centralized payment systems including banks are the choice.

[davis196]

With the creation of Bitcoin and other digital money systems before this and afterwards. All of this was created in the private sector. Traditionally most of the fiat money systems were run and created by some branch of a government or public system.

This statement seems wrong to me. Actually most fiat money systems were created by private entities and later on, some of them were nationalized and/or regulated by the governments.
The US federal reserve was basically a bunch of private banks, back in 1913. The first central banks (created centuries ago)were actually private. They were put under government control decades after their initial launch. The bank of England is a great example.
All credit/debit card companies like VISA, Mastercard and American Express are private.
All the digital payment services that are using fiat money are private-Paypal, Skrill, Zelle, Cashapp, Venmo. The list goes on and on.
There's no "private vs. public" dichotomy, when we are talking about financial services. There's actually a symbiotic relationship, the private sector creates the financial innovation, but the government creates the regulation and tries to reduce the amount of financial scams.

[Poker Player]

With the creation of Bitcoin and other digital money systems before this and afterwards. All of this was created in the private sector. Traditionally most of the fiat money systems were run and created by some branch of a government or public system.

With this possible change of possible hands of where the money gets run and created from what are your thoughts on a private entity creating and controlling a new money system.

I don't quite understand you, Bitcoin was not created by any entity, unless you believe in conspiracies about it.

So as an answer to your general question I think the private sector tends to do things more efficiently than the public sector, and money creation was not going to be an exception. I don't mean to say that the private sector is perfect, as there is a lot of garbage in it, and scams, etc. But the public sector tends to be loss-making, so I am not surprised that the best payment system ever created was created and operates without state intervention. 

Many people might not realize it, but the Federal Reserve is a private entity. The government has very little control over it.

Very little control?

Chair of the Federal Reserve

"The chair serves a four-year term after being nominated by the President of the United States and confirmed by the United States Senate..."

I see clear links between political power in the US and the Fed.

Besides, there is life outside the US, you know? The ECB or the BoE are public institutions.

[so98nn]

Hmm, not sure if we can have “private” companies and at the same time be able to control our financial services? When it comes down to privatisation of financial systems, you already loose the control over your funds. What bitcoin did is out of the box, it is giving us almost 100% control over it. There is no restrictions, there is no middle person or entity who can control it as broker or something.

Basically we should not be looking forward to encourage these kinda services, they could change the way it works for us on individual basis.

[bittraffic]

they each have 3 tiers of wallets
if you use a 'basic'(bottom tier) wallet you can only accumulate upto X amount, but not required to give KYC. if you accumulate more you have to upgrade to the next wallet that offers more services but asks for KYC
and if your accumulate a substantial amount or are a business you require the top tier wallet that offers more services but requires more detailed kyc

Just what they told so. We are very much led again to different information about China's CBDC. Its actually a good platform and not meant to monitor us all. Its however still fiat which government digital fiat money is same with the fiat today.

Transparency in  blockchain I think made users shift their trust to private currencies but more of Bitcoin actually. Bitcoin is BACKED by the most secured network and energy. USD is not backed with something. Bitcoin is the most trusted because they see there is no CEO that can be lobbied by government officials. If a token ETH are trusted more by users, who wouldn't trust Vitalik?

The Russian government can actually hostage Vitalik's family and Putin's government can ask ETH's control. This also applies to ADA with Charles Hoskinson.

[Kakmakr]

Do you honestly think the "Fiat" system are controlled by governments? The government are being controlled by "Puppet Masters" in the private sector (Banking & Financial sector & Super rich people) that put them in those positions with their money.  

Who do you think are funding their election campaigns and the bribes that are being paid to get large tenders? Also, the same people behind the government ..are also behind large Crypto currency exchanges.  

[GreatArkansas]

(....)
What factors would you need to maintain confidence in the private sector in creating and controlling a new money system? Thoughts

I am also thinking the volume here, the more money they have, the more impact on the market they can do it. It's basically money is making more money. Especially in the cryptocurrency market, I believe that the manipulation is still existing, even in a non-crypto market that's why it's really difficult to trust these days, as you can see, as time goes by, governments are being strict with these centralized entities, especially in the cryptocurrency market.

[kryptqnick]

I don't have strong trust in the governments, but I'm currently thinking favorably of my country's government due to a particular situation my country's in (the situation of war). But generally, I trust private corporations even less. The government, at least in a democracy, is held accountable for its mistakes and is at least somewhat under control of the civil society to ensure that there is no significant abuse of power going on. Private corporations, on the other hand, can use money to blind the authorities and are not as bound to, say, care about the safety of their customers' data, about their privacy etc. So fiat is bad, CBDC is worse, but, say, Facebook's centralized crypto is even worse to me. Bitcoin is the best ideologically because it's neither under governmental control nor under control of a private corporation.

[Ojengonggu]

(....)
What factors would you need to maintain confidence in the private sector in creating and controlling a new money system? Thoughts

I am also thinking the volume here, the more money they have, the more impact on the market they can do it. It's basically money is making more money. Especially in the cryptocurrency market, I believe that the manipulation is still existing, even in a non-crypto market that's why it's really difficult to trust these days, as you can see, as time goes by, governments are being strict with these centralized entities, especially in the cryptocurrency market.

That's why the market is currently difficult to bounce back due to the lack of encouragement from us and from the few bitcoin users because they sell more than they maintain and the government is getting stricter in making regulations about the crypto world as you said.