Comment by codersfocus
Comment by codersfocus a day ago
UBI is the wrong approach.
Once CBDCs become a thing, citizens should have the ability to have direct credit relationships with the central bank.
We can then transition from a cash based monetary system to an accrual based one (similar to how businesses do their accounting.)
Public benefits, then, rather than being given out like it is currently (e.g. you get $200 for food stamps) will instead be based on allowing you to draw credit.
So, the eGovCreditCard would for example always allow any citizen to draw $200 per month for food expenses.
Potentially, if we want to do more generous policies a la "UBI," we could add e.g. $1000 always being allowed per month for rent.
Health care similarly, instead of if the archaic and very inefficient system we have now where those on the dole often go to emergency rooms, money is funneled through "insurance", etc... would allow you to draw money for regular doctor care. Maybe at a set maxiumim limit per citizen, e.g. $1M.
Your suggestion basically amounts to: digitize and centralize welfare. There are already electronic cards for food. If the money is drawn directly from the central bank as credit instead of from the state welfare fund, it won't make it any more efficient. In fact any experimentation among states will disappear. Also, if CBDCs become a thing, you could see a slow slide into behavior control. What people eat, and where they live becomes a concern for the central bank, because they get to decide who the approved vendors are for those things. "Central" anything is a design smell in most cases.
Getting rid of cash also requires proper paper work and identification so you can sign up for the CBDC wallet. In that case you're excluding the very people from the system who need it the most.