#22 Untangling: Digital Cash (part 2)

In this week's edition of Untangling Web3, hosts Alec Burns and Jack Davies dive into the world of digital cash, breaking down its complexities and history. They explain the difference between cash and money, pointing out key features like privacy and direct transactions. The chat then introduces listeners to different forms of digital money: from electronic cash, which doesn't quite capture the essence of physical cash, to cryptocurrencies like Bitcoin, which has its own set of challenges.

The conversation turns to Bitcoin's transaction methods and how security measures vary depending on the size of the transaction. They also touch on why some big companies and governments are hesitant to fully embrace Bitcoin. The discussion then shifts to stablecoins, digital currencies like Tether and Luna that are tied to stable assets, explaining how they work and their potential risks.

The highlight of the episode is the introduction to Central Bank Digital Currencies (CBDCs). They discuss how most countries are considering using these digital forms of their national currencies and the advantages they offer, like helping more people access banking services and easier money management. They also cover ongoing projects in countries like South Korea and the UK.

But it's not all praise for digital cash. Alec and Jack also bring up concerns about digital money systems, such as potential technical issues, government control, and worries about privacy. They mention interesting developments like companies making physical notes linked to CBDCs, emphasizing the significance of the shift from physical to digital money. The episode wraps up by looking at how digital cash could change global money transfers and payments and the benefits CBDCs offer to central banks. The pair stress the importance of explaining complex topics like these clearly and look forward to the next episode.

Untangling Web3 is brought to you by hosts Jack Davies and Alec Burns, produced by Emma Camilleri, and music by Daniel Paigge. Got a question or topic suggestion? Send us an email at [email protected].

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