REaltormc: “ Iraq: the government is compelled to “delete the zeros” from the dinar currency … more than “3 scenarios” are expected that will affect salaries and living”
IMO, I like when I see them talk about deleting the zeros. All the examples of countries he gave had run-away inflation. I guess he couldn’t use Turkminestan because nobody ever heard of that country.
I found something about Bolivia that was interesting from 1986:
DEC. 30, 1986
Bolivia clips six zeros from peso and renames currency
LA PAZ, Bolivia — The government of Bolivia announced Tuesday it will remove six zeros from the its inflation-battered peso and rename the currency the ‘boliviano,’ effective New Year’s Day.
One U.S. dollar now buys 1,923,000 pesos. After Jan. 1, one dollar will be worth 1.93 bolivianos, the government said in newspaper advertisements in local newspapers. Bolivia’s Central Bank said all commercial banks will close Friday so they can adjust their balances and ledgers.
Oct 1, 2020 11:13 AM UTC
1 United States Dollar equals
6.90 Bolivian Boliviano
Ross: IMO INTERESTING: In the section titled “Central Bank Digital Currencies”, the Cleveland Fed president writes that “the experience with pandemic emergency payments has brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC).”
And in the shocking punchline, then goes on to reveal that “legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”
But wait it gets better, because in launching digital cash, the Fed would then be able to scrap “anonymous”” physical currency entirely, and track every single banknote from its “creation” all though the various transactions that take place during its lifetime.
And, eventually, the Fed could remotely “destroy” said digital currency when it so decides. Oh, and in the process the Fed would effectively disintermediate commercial banks, as it would both provide loans to US consumers and directly deposit funds into their accounts, effectively making the entire traditional banking system obsolete.
Other proposals would create a new payments instrument, digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency. Depending on how these currencies are designed, central banks could support them without the need for commercial bank involvement via direct issuance into the end-users’ digital wallets combined with central-bank-facilitated transfer and redemption services.