INTERVIEW: "Should the Government Support Central Bank Digital Currencies?" - Dr David Wilson Economist

Summary

The conversation explores various aspects of banking, money creation, and the role of central banks. It discusses the impact of cryptocurrency on the banking system and the challenges faced by governments in regulating it. The concentration of banking assets in New Zealand and the dominance of mortgage lending are examined. The conversation also delves into the need for investment in productive activities and the creation of sovereign funds. The control of New Zealand's currency and the role of central banks in the economy are analyzed. The conversation concludes with a discussion on the concentration of power in large banks and the importance of diversifying the banking sector. The conversation covers topics such as gold confiscation, centralization, decentralization, and central bank digital currency (CBDC). The guests discuss historical events like the gold confiscation in America and the potential dangers of a centralized banking system. They emphasize the importance of decentralization and the need for a more diversified banking system. The conversation concludes with a discussion on CBDCs and the potential risks of government-controlled digital currencies.

Takeaways

Historical events like the gold confiscation in America highlight the dangers of a centralized banking system.

Decentralization is important in banking to ensure decision-making at the front line and to have a better understanding of local needs.

A more diversified banking system is healthier than a centralized system.

The introduction of a central bank digital currency (CBDC) raises concerns about government control and anti-competitive practices.

Chapters - please add 15 seconds due to the video intro

00:00 Introduction and Welcome

01:16 Discussion on Banking and Central Bank Digital Currency

03:44 The Creation of Money in New Zealand

08:23 The Role of Cryptocurrency in Money Creation

10:48 Fractional Banking and the Role of Banks

14:02 The Concentration of Banks and Mortgage Lending

17:10 The Control of Central Banks over Currency

19:46 The Abandonment of the Gold Standard

22:09 The Need for Investment in Productive Activities

25:03 The Role of the Reserve Bank and Regulation

26:51 The Importance of Sovereign Funds

32:35 The Lack of a Sovereign Fund in New Zealand

38:09 The Need for Investment in Infrastructure

45:07 The Importance of Productivity and Wealth Creation

53:15 The Control of New Zealand's Currency

56:18 The Concentration of Power in Large Banks

57:06 Gold Confiscation and Centralization

58:53 The Importance of Decentralization

01:00:37 Central Bank Digital Currency (CBDC)

01:03:06 Conclusion