| > How are you getting money into this "FedAccount" does your paycheck get sent directly to it? Do you first send money from another bank? No, electronic money is just a number in a database. The US government can give you an account number like any other bank does now. Of course, you would still have the option to use a non US government electronic money account. >If it's the former option then real banks will have less money to lend, Yes, currently banks are earning money for an inefficiency from back in times when cash was the primary money. A lot of their purpose is obviated with todays’ technology of computers, databases, and instant communications. > Companies would just bypass actual banks and send all paychecks to everyone's "FedAccount" that would be billions of dollars moved. Possibly, if that is what people want. >Money in real banks is lent out, money in a "FedAccount" would/couldn't be (if banks have fewer deposits then they can't get as much money from the Fed). Banks can still offer people interest to entice them to deposit funds with them rather than the US government. |