Who benefits from a digital currency?
If I have a $100 banknote in my pocket and go to a restaurant and pay
for dinner with it. The restaurant
owner then uses the bill to pay for the grocery bill. The grocery store owner
then uses the bill to pay the farmer. The farmer will then use the bill for seed
stock... on and on it goes.
After an unlimited number of payments, it will still remain a $100,
which has fulfilled its purpose to everyone who used it for payment and the bank
has not make a cent on the transactions.
But if I go to a restaurant and pay digitally - then there are bank
fees. The bank fees for my payment transaction charged to the seller are 3%, so
around $3. for each $100 transaction. This $3 fee is for each further payment
transaction.
Therefore, after 30 transactions, what will remain of the initial $100
will be only $10. The remaining $90 became the property of the bank - thanks to
all digital transactions and fees.
Support our small businesses - use cash.