Bitcoin Forum

Bank of Korea Governor Sees CBDC Introduction as Case for 'Urgency:' Report (https://www.coindesk.com/policy/2023/12/15/bank-of-korea-governor-sees-cbdc-introduction-as-case-for-urgency-report/)

Not much to read in the report part from the fact stable coins like USDT, USDC is struggling to keep up their purpose of stable coins now governments may push their CBDC tokens now to the crypto community as an alternative which is good or bad in your opinion?

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Stablecoins are never meant for long-term storage if that is the case would you prefer CBDC over USDT or other centralized stablecoins which always struggle to be close to USD's value?

So long as those CBDCs are pegged to a traditional currency of the state,  it means that they will always serve as an alternative to each other base on the currency demand and availability at all time and among various exchanges,  just like the USDT which is the most popular among stablecoins and is listed almost on all the exchanges because that is the only to increased the stable coins functionality and adaptability at all time.

And on taking a stable coin as a long-term investment,  it is a bad idea because its value is already pegged which means it can't increase beyond a certain limit, so what makes stablecoins different from keeping your money in the bank, is both a theme in operations and outcome.

This is long overdue and they've been on it, I think a year ago or two already.

Well, the difference is that the government can just give notice to the other stable coins that are not backed by the government. So, stable coins even if they are centralized but if they're not backed by the government then they might have some problems towards compliance. If there's a stable coin that's decentralized, that's what I'll use and that's DAI. If there's another one that proven to be decentralized, I might use it as well.

The intentions of the governments are clear, they are not happy that investors on this market can avoid their fiat with the use of stable coins, as even if they are regulated they do not have the same level of control they would have with their fiat or a CBDC, so they are doing what they can to destabilize those coins and then claim their CBDCs are the best alternative, however those coins are incredibly dangerous as they will give governments control over your finances like never before, and personally I will never use them regardless of how much they promoted them.

That is the right choice as well but DAI is never preferred by traders as their go-to stable coin but my question is if we have to pick one from a centralized stable coin issued by someone or CBDC issued by your government.

Well, to answer your question. I have two options. It's either USDT or USDC. I think these two are the ones that I'll take from these centralized stable coins. IMHO, they're much better than CBDCs because they're one of the actual stable coins that can be said as a cryptocurrency. Unlike with CBDCs, they're not real cryptocurrencies but just made to compete with the stable coins. Anyway, that's my take on your question.

This will definitely have impact on existing stable coins because we he already been skeptical about the stablecoins and I think I would definitely go with CBDC instead of stable coin because anyway both are eventually centralized at the end of the day and CBDC will have advantage over USDT/USDC and atleast it wouldn't disappear from market. I know both CBDC and Stablecoins don't hold real asset to back up their supply but we have no other option if we have to go for stablecoin.

There are things about which we are concerned about government control through CBDC, but I think it will also be an inevitable part of the acceptance and scale of the crypto market in the future. There will be controversy, but imo we probably as a user - investor should learn to accept and adapt to its changes. Previously, I had high hopes that CBDC would launch soon, but not as expected, the government needed a lot of time to research as well as appropriate economic market conditions to deploy it, but it was clearly of interest. Their interest in blockchain technology or the crypto market is growing.

Indeed stable coins are never good for long term investment, even if they are know to have a less volatile nature unlike other crypto yet they are still not good for long term holding because, the volatility of these crypto currency is one of the key factor that makes it good for long-term holding. Beside they are centralized and can be easily manipulated at any time, that should be the type of coin we'll hold for long. Anyway stable coins like USDT are much more preferable to CBDC because, CBDC might experience inflation due to fact that they are pegged with the countries fiat currency, inflation is one of the top disadvantage of CBDC and they can be easily manipulated.

CBDCs are NOT cryptocurrency these are made by central banks and they are basically the digital version of the country’s fiat or currency even though you can invest in CBDC its main purpose is not to compete with other cryptocurrencies

I was never a supporter of stablecoins and I have never kept any in my entire time in the cryptocurrency industry. And never with CBDC too. Now that the government might take advantage of it, I really don't care but I know this will have a ripple effect in other cryptocurrencies, especially the ones that I am holding.
This is the first so we really have no idea what could happen. But, most popular stablecoins had been in the industry for a long time so I don't think changes will affect that much or better, it will not even happen. Most traders and investors will keep on using what they are accustomed to and even if USDT and other stablecoins are struggling in this era, I don't think there will be much of a change. And, I don't think governments can force it yet, so people will have the option of what they want. Plus, CBDC has to fortify its reputation first, there are so many questions coming out, especially about privacy.

By definition of cryptocurrency even USDC or USDT are not defined as an actual cryptocurrency since both of them are centralized and complete control in someone's hand while by definition of transactions are recorded and maintained by blockchain then CBDCs will be qualified as crypto too but the difference is its issued by government so we are going to trust a private entity or government.

Hasn't CBDC's plan of trying to remove stable coins been a thing for so long already? Granted we've never really seen any implementations so far, but I highly doubt they'd replace stablecoins in the future. I mean, unless there's a law or regulation they'd implement, otherwise most people would probably just stick to what they actually know and have used for a long time. Honestly, I'd probably use whatever is the most useable one out of the two. Naturally the closer to the price of USD, the better but either way works really, and I reckon most people have the same mindset.

Yes, as a place to invest in a bad place, in my opinion the same as USDT, CBDC and USDT is a manifestation of Fiat itself, so Stalacoin is not a place to invest.

But in terms of use and regulation, of course CBDC is certainly far better than a private stablecoin or issued by a particular company or press, CBDC is much safer because it is supported by the government of the country itself in running it, so I think if indeed CBDC can run USDT/USDC it Or other stablecoin so I chose to use CBDC, but keeping CBDC only limited to saving my money before I invest in the Altcoi or Bitcoin project.

They are just payment bridge and if they will foster adoption in crytpo, they are more than welcome just like the Paypal and the rest, many centralized exchanges today used PayPal and many more for p2p trading and this help to onboard many people to crypto as adoption but replacing USDT and USDC, I'm not sure about that even when stablecoins are centralized with lots of controversies, investors are smart when it comes to decisions making, never trust the government but you know that CBDC might just be one of the ways the government might want to fight people that evade tax.

Stablecoins have audited and are becoming more transparent as of recent and I like how many of them are been probe by the Security Exchange commission over the last few years, they are open and I love that but CBDC will remain private and you will hardly know what is even happening underground. The deppeging of stablecoins particularly USDC and USDT have even reduced since they started the transparency and auditing because people have begin to know what is backing their assets, it wouldn't be much of headache as compare to CBDC.

How do you mean that stablecoins are NEVER MEANT for long term when stablecoins like USDT is the crypto world USD? I mean, myself and many others hoard USD pegged coins not because of anything but to have USD tied value of our money. And considering that, it is safe to say it can be long term, as long as it is tied to USD. About preference, I have always preferred USDT and I guess because it was commonly used before now that there are more stablecoins.

You can store your stable coins long term if you want, but since you are not really holding fiat directly but instead you are holding the token of a private company that is supposedly backed by enough fiat, anyone that chooses to do it is taking a massive risk, because if at some point it is demonstrated this is not true or the company behind the coin suffers some financial issues, then the parity with the dollar could be lost and its stability will become nothing but a distant memory.

I do not know how the CBDC will be distributed, but most likely you will need a KYC verified wallet and it contains all the information about you. Therefore, USDT is still an attractive option for those who want not to provide their data or to send their money between countries, as it is expected that you will need a bank or a system such as SWIFT that can These CBDCs are used to transfer money between each other and basically determine the exchange rate, so USDT and stable cryptocurrencies will be with us for a while until the whole system is based on identity verification, and then they will disappear.

The problem of stable coins being unstable and shady proof to back up their market cap because we don't know if they are really holding resources or US dollars equivalent to the total supply of USDT/USDC that's where the problem arises as the audits which are shared by Tether are self audited not by any third party. Now those who use centralized Exchanges don't mind doing KYC since they have already done that to create the account at centralized exchanges.

I don't see CDBC introduction as a case of urgency. because  there are already many stable coin which is listed on exchanges. which need to be used rather than creating another.

I don't think it's good. What they should do is to embrace the already existing stable coin, in other not to have a replicated or duplicate stable coin. In the cryptography currency market. It will surely give scammers the opportunity to create there own stable coin, that will have a resemblance of the newly created one, in other to attract people. Which if they are not careful people will fall victims. Because this same thing has cause many to send cryptography to a wrong wallet address.

I prefer USDT  over CDBC because is more reliable, popular trustworthy and faster way of transactions and has gain popularity over time.  It takes time to build reputation and which should no be compromised.

Cryptocurrency is already a free market, anyone can create their own crypto/stablecoin and whatever they want but now we are talking about CBDC issued by the government for example digital Yuan which was issued by China back in couple of years ago.  USDT isn't trustworthy nor reliable, if can go to zero the next day when you wake up and you can't find someone to point your fingers but if the same happens to government-issued stable coin then your country iself broke.

I think it won't be distributed just like that, like a relief goods that the governments are giving whenever there is a calamity, but picture out CBDC like a typical crypto. You will also need to pay in order to obtain them. But, maybe some employers will pay using it. I'm not only sure if they are also mineable. But if so, then this is another way of obtaining them. CBDC's are centralized because governments or the banks are behind them. So yeah, the possibility of KYC must be there. I think USDT has no difference to them.

If you will only say stable coins, maybe it is acceptable since there are also a decentralized type of it, like for example DAI. BTC is still the best option though. Most cryptos are decentralized. They are new way of paying or the future of money, so I don't think the last thing that you said is going to happen. But even if let say it is, I think that people are still free to choose whichever payment they want to use and some or most of them will still prefer the decentralized cryptos.

CBDC will end in the scop Le of stable coin  if they are coming to the cryptocurrency ecosystem market space and their patronizing will be very low because of the government control coin. And probably it is only the government officials will even use it. I have heard a news from the main board that USA government is trying to control the cryptocurrency world and by starting it from the altcoins and Centralized Exchanges.

Op I might not agreed with you on the bases that stable coins are not for long term investment. There are some coins that have been in the system for a long period now and they are still existing. And those early investors of the those coins are making profit. Though not all.

Instead of stablecoins, they can go with bitcoins for assurance and they just need to buy it when the price is low because they will have a chance to increase their money and at the same time they will also make it more secure and don't need to worry about getting block or freeze by the government or the owners of stablecoins. Yes! the chance to get his money frozen by the owners of the stablecoins whenever they see some animality and involvement in hacking or something like that.

A healthy competition is always the best if you want to bring out the best in something. Without the CBDC, stable coins were stable coins without any competitions. Now that there is one, I think people will be able to compare them and choose what they think is the best. I don't see any difference between CBDC and stable coins as they are both centralized coins but one is controlled by the government and the other is by some centralized company.
Maybe you will get more freedom with stable coins but they are not the best option by any means. If people realize that the government is using the CBDC as a weapon to control them, surely they will move towards something more free like stable coins. And once they understand the power of freedom, I am sure they will also leave stable coins and move towards the king of all cryptocurrency, Bitcoin.

The CBDC pose a threat towards the crypto community but if other people also realize which one is the best, I am sure it will be in the favor of cryptocurrency in the end. Most likely Bitcoin.

The outcome of investing in stable coin can be dissapointing most times so I preferred we just use our normal fiat currency instead of going through all these stress and at the end of the day, no solid pay or gigantic profits. Keeping our money in the bank doesn't warrant any risks but storing our crypto in exchanges, to be precise, stable coins that wouldn't make any massive pump from year to year. Stablecoin exists in the space and they've served quite numerous chances in the market. I would never advised any newbie or pro investor to invest in altcoin regarding reaping gigantic profits in the system.

Stable coins do not really serve the function of an investment vehicle for most investors, the only exception to this are the people that are holding a fiat currency that is suffering a high level of inflation, as in that case stable coins could give them some protection against it, however for the rest of investors stable coins are just a way to get out of their open positions but do so without sending their money to a bank account, an action which could get your bank account closed if you are not careful.

This is especially about the stable coins not altcoins in general, and what does stable coin do that can bring profit to its investors?

In no way it is going to make profit because it always stays to the pegged value which is supposed to be $1, but many stable coin went to zero because of various reasons so why not trust something issued by the government over centralized and completely controlled private stable coin?