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#374: Morgan Housel on the Psychology of Money

The Pomp Podcast

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Digital Currency

I've actually been surprised by regulators and politicians in terms of their desire to digitize the dollar. I think it's more acceptable, at least in conversation than it was a decade ago. The question is just like, where does it talk about money, but isn't it already digitized? Like if the Fed credits Bank of America with digital reserves, and then Bank of America makes a digital loan, and then wires me a digital deposit, that's all digital right? So the big difference, and this is where like the language used ends up being very semantics,. Instead what you get is in a digital currency, you get with this instantaneous settlement or near instantaneous settlement.

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