The Central Digital currencies will make monetary policy more difficult

[Ozero]

As far as I understand, we are talking about the digitized currencies of states, their stable coins of central banks. I do not think that their release will negatively affect the existing financial system and bring the onset of the global economic crisis closer. Such coins will be faster and more efficient and will be much more useful for the banking system and ordinary users. Soon we will be able to see this in practice, when states begin to put them into circulation on a massive scale.

[oHnK]

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country.  However, China can indeed be considered a model for the follow-up to this great program.  In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC.  That should be avoided.

[paxmao]

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country.  However, China can indeed be considered a model for the follow-up to this great program.  In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC.  That should be avoided.

The problem with China is that information is never clear, so big problems may not really be that big and big successes are most of the time difficult to believe. The centrally issued currencies are absolutely terrible for privacy. The control of the issuing entities over who does what and when is nearly absolute. That, in Europe or US, may be a concern, but in China is simply a terrible problem as the CCP as clearly shown intent of controlling the individual micro-behaviour of individuals even by means of a "social credit" systems that require citizens to be "good and loyal".

[redsun114]

When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).

With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.

I am yet to fully understand what this central bank digital currency is all about and how it is going to work. OK I do understand that it is going to be paired with the Fiat currency, which means that both of them are going to have the same value, but what I’m Yet to understand is whether these central bank digital currencies are going to be a different currency/assets on their own that can be printed by the government at anytime and different from the fiat, or they would just be linked to the current Fiat that we are making use of now, meaning that every time one Fiat is printed, it is also represented in a digital form.

Although I don’t really see the need for these central bank digital currencies, because we already have means for doing transactions online, so it’s totally unnecessary, we have bank apps and we have PayPal, so what’s the need?

[jaberwock]

anyone could potentially hold an account on a central bank skipping the intermediaries.

you would be holding an account with the original supplier as opposed to having to go through a retail bank.

What will happen when skipping the retail banker? Why those intermediaries are important against monetary policies for the case of CBDC? If it is all about central bank should not participant in banking services on CBDC means how right now they are also doing banking services with fiats without any major problems right now?

There will be literally no difference in fiat and government issued digital currency.

This is what exact my understanding about CBDC. If governments need to alter their momentary polices just for the case of inducing CBDC, I guess most government will skip their idea of getting into digitalization of their fiats; which must be a positive news for cryptos.

[DrBeer]

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country.  However, China can indeed be considered a model for the follow-up to this great program.  In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC.  That should be avoided.

Are you sure that this solution will not be centralized and controlled in reality. And a government-run China? And it will be as they want, and nothing to do with cryptocurrency, free and decentralized, CBDC did not have and does not have! Wherever you want to use CBDC, you will be forced to disclose your identity (Chinese banks and financial institutions do not work with anonymous accounts), any of your inappropriate behavior - and your account in CBDC will be blocked, and only the Chinese court will decide what to do next. Today China, unfortunately, chooses the path of totalitarianism and total control, and not only over its citizens.

[LUCKMCFLY]

The CBDC concept that is being planned by Central Banks in all countries is currently still unclear, for example in my country.  However, China can indeed be considered a model for the follow-up to this great program.  In accordance with the Binance CEO's view that, if CBDC will be released freely in the market then it will be a good choice and for the market but don't let the government with all its political forms limit CBDC in such a way just to beat BTC.  That should be avoided.

I agree with you, if we get to see China has a very good economy compared to any country, it is a country that survives because of its workforce, but the digital currency is totally FIAT and even if it uses blockchain technology it has a lot to do with it. See with everything that can be called crypto, for something they banned them, they made a big FUD to BTC and they still do it, this type of FUD before in 2017 was very relevant in the BTC market, not now, now it is more Likewise, in fact when there is fUD from China, it is most likely that the price of BTC will rise.