What I don't really understand here is in what sense you're suggesting a new currency. It seems that you're suggesting that the central bank replace Visa and Mastercard. But those don't have their own currency either.
A CBDC is not a new currency for individuals to use. Everything you do will still be denominated in good ole USD.
A CBDC is digital currency that banks will use to process transactions between each other behind the scenes.
Right now; if I use Bank A and you use Bank B, there is no way for me to transfer money to your account without going through ACH (Automated Clearing House) which can take days and despite it's name, isn't really "automated" --- it was originally designed to process paper checks.
A CBDC will change this and make instant account transfer 24/7/365 possible. It will be like Venmo for everyone without any sign up --- you know, Venmo only works if both parties have signed up for a Venmo account and have funds deposited in Venmo. With a CBDC in place, the sign up will be an automatic part of setting up an account with *any* bank.
A CBDC will make it easy for you to split the cost of dinner with a friend while you're sitting at the table. Just use your phone to sign in to your bank account and make the transfer. Likewise, your friend will be able to sign in to his/her account and see that it's done --- instantly --- like magic, something that has never been possible before.
Basically, a CBDC will speed up and modernize the banking system.
A CBDC is digital currency that banks will use to process transactions between each other behind the scenes.
Right now; if I use Bank A and you use Bank B, there is no way for me to transfer money to your account without going through ACH (Automated Clearing House) which can take days and despite it's name, isn't really "automated" --- it was originally designed to process paper checks.
A CBDC will change this and make instant account transfer 24/7/365 possible. It will be like Venmo for everyone without any sign up --- you know, Venmo only works if both parties have signed up for a Venmo account and have funds deposited in Venmo. With a CBDC in place, the sign up will be an automatic part of setting up an account with *any* bank.
A CBDC will make it easy for you to split the cost of dinner with a friend while you're sitting at the table. Just use your phone to sign in to your bank account and make the transfer. Likewise, your friend will be able to sign in to his/her account and see that it's done --- instantly --- like magic, something that has never been possible before.
Basically, a CBDC will speed up and modernize the banking system.