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I'd love to see a government experiment with having its central bank issue a dollar-backed stablecoin.

I mean, fundamentally the issue is that the rise in digital payments puts most of the money supply in bank ledgers... if the money supply was on a public ledger, individuals could still deposit it with a bank, but they could also send it peer-to-peer if they so chose.

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The loss of privacy in this case may not be worth using a public ledger.

In general though, I think it would be an interesting experiment if individuals can hold central bank money directly instead of going through commercial banks.

I think there are plenty of ways that privacy could be regained... layer 1 settlements, use of an anonymous protocol like MimbleWimble, etc. It wouldn't necessarily need to be Bitcoin as it's implemented today.

But I agree... that experiment would be quite fascinating. It might not even be that big of a change... most people would probably continue to entrust a bank with their funds, and banks could potentially continue to operate a fractional reserve system.

>having its central bank issue a dollar-backed stablecoin.

Why not just issue dollars?

I mean yes, you could just call them dollars. That was just to differentiate them from cash for the purposes of this discussion.

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