Warning against CBDC from bank of Ghana

[Gorosden]

How effective is this news against CBDC? The bank of Ghana warns against developing CBDC for its country, calling it old traditional thinking lol, check out the link below for full news

https://news.bitcoin.com/bank-of-ghana-urged-to-resist-developing-cbdc-based-on-old-traditional-siloed-financial-thinking/

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[Yogee]

The bank of Ghana warns against developing CBDC

*warned*

The argument raised against CBDC are valid. It's basically a fiat on a private and centralized blockchain. Think of a USDT that's controlled by the banks. I'm honestly surprised that Afroblocks were complaining that they're not consulted. Did they really expect a CBDC to be borderless and decentralized? hehe

[Teknisi88]

The Government of Ghana needs to embrace digital currencies to facilitate trade across the continent.
The concept has an important role in the provision of financial services in the future globally. This project is a significant step towards positioning Ghana to take full advantage of this emerging concept.

[tabas]

Isn't it that the government should be the one to initiate CBDC? if there are some others that can develop that without any of their consent then those developers just have to take a consent from them and have a negotiation and, explain why they have to develop it and what are the possibilities that it can do their country.

[masterrex]

How effective is this news against CBDC? The bank of Ghana warns against developing CBDC for its country, calling it old traditional thinking lol, check out the link below for full news

https://news.bitcoin.com/bank-of-ghana-urged-to-resist-developing-cbdc-based-on-old-traditional-siloed-financial-thinking/

I think the Bank of Ghana or (BOG) wants to create its own CBDC, But the Ghana Blockchain Society(AfroBlocks) has a warning against it (if the CBDC is base on old traditional siloed financial thinking) I don't think its a warning against the creation of CBDC from the Government, the warning is only coming from the Ghana Blockchain Society (AFROBlocks) so IMO, there's nothing effective about it because it's just a simple warning from a private group and there's nothing they can do if the government wants to do it.

[avikz]

How effective is this news against CBDC? The bank of Ghana warns against developing CBDC for its country, calling it old traditional thinking lol, check out the link below for full news

https://news.bitcoin.com/bank-of-ghana-urged-to-resist-developing-cbdc-based-on-old-traditional-siloed-financial-thinking/

CBDCs are the future of the traditional financial system. There's no going back no matter whatever others think. Because with CBDC, governments will get bird's eye view on the finances of their citizens. They will be able to catch black money hoarders and tax evaders quite easily. So no government will leave this great chance of spying!

But whatever Afroblocks is saying, is related to the usability and possible integration of CBDC with cryptos. So I don't think there will be any action even after the warning from the crypto community of Ghana.

[crwth]

Maybe the bank of Ghana is unaware of the actual purpose of CBDC's. Isn't the current banking system where it's all digital is almost the same? The only thing unique about CBDC's is that it's centralized. I think they don't need it currently and what they need is the decentralization factor that cryptocurrencies offer and with these action, it might not be so crypto-friendly to begin with.

[Charles-Tim]

The argument raised against CBDC are valid. It's basically a fiat on a private and centralized blockchain. Think of a USDT that's controlled by the banks. I'm honestly surprised that Afroblocks were complaining that they're not consulted. Did they really expect a CBDC to be borderless and decentralized? hehe

Yes, from the quote, just as you read it. We know how the government of Ghana will not welcome what Afroblocks are commenting about, how can CBDC be decentralized if it is just Fiat in crypto form, it is not possible because the government will want to make their monetory policies, Fiat and any currency issued by them (the government) to remain centralized and completely controlled by them (the government).

Afroblocks (formerly Blockchain Society Ghana) instead wants the central bank to emulate “financial projects that are borderless and decentralized like modern-day cryptocurrencies.” According to Omar Majdoub, one of the association’s co-founders, doing this will increase the likelihood of the CBDC’s success.

Ghana is a country in west Africa, Africa countries are developing nations, even developed nations always devalue their Fiat price because of certain reasons to protect foreign reserves, while developing and underdeveloped nations devalue their currencies the more. If CBDC is decentralized, it will be the worst decision by the government because if their economy is inflationary, no way to control e-Cedi, people will move from Cedi to e-Cedi, this will have a negative effect in the country. But e-Cedi will be pegged with Cedi, I did not yet understand while Afroblocks is try to imply, because Cedi is for the government and it is centralized, the why e-Cedi should be different?

We have alternative already, Bitcoin is an alternative, it is decentralized and private if you want privacy. Then, why not leave the government to centralize their currency as they want it to be. I think the complain I expect should be about how safe and secure will e-Cedi be, not about decentralizing it or not.

[semobo]

Isn't it that the government should be the one to initiate CBDC? if there are some others that can develop that without any of their consent then those developers just have to take a consent from them and have a negotiation and, explain why they have to develop it and what are the possibilities that it can do their country.

Banks also can create their tokens basically its central bank tokens from its name and the government is also going to support it as long as it will make money to the government and no one cares about the people who is going to use it.

[zasad@]

CBDC is a technology on a centralized blockchain. at first, users will be offered various bonuses and privileges, and when there are a lot of users,
the regulators will start a ban and block policy.
Cryptocurrencies will be able to give users some freedom and a guarantee of the safety of coins.

[tabas]

Isn't it that the government should be the one to initiate CBDC? if there are some others that can develop that without any of their consent then those developers just have to take a consent from them and have a negotiation and, explain why they have to develop it and what are the possibilities that it can do their country.

Banks also can create their tokens basically its central bank tokens from its name

The central bank yes but technically, it's still under the government.

and the government is also going to support it as long as it will make money to the government and no one cares about the people who is going to use it.

Well, the initiative and command should be from the government first before their central bank takes action. It's not about making money though but about its convenience that it can give specially in these trying times.

[VanDeinsberg12]

CBDC is just another tokenized centralized fiat money. he may right about that but it seems like that it's not even an olders opinion. The creation of CBDC may have some purposes and it can't be argues coz it's the same like fiat as centralized thing under the government. Once fiat becomes tokenized it can make more money can enter to the crypto market easily.

The bank will always the idea of tokenization. This is not my first time to see that happens.

[Gorosden]

On the one hand, with the creation of a central bank for digital currency there will be a lot of regulation to regulate crypto and this makes many projects unable to enter the market but there is a positive side that is increasingly being recognized by the Government of cryptocurrency and this is a good development for investors because it will narrow the space scam project move

I think you are wrong, regulations can't stop scam projects in crypto space in any way, we have many decentralized projects which I believe it's none of the government business, do you remember how many DeFI projects popped up last year with no details of the developers and no details on team? They are hiding for the fact that their project is DeFi

[NeuroticFish]

On the one hand, with the creation of a central bank for digital currency there will be a lot of regulation to regulate crypto and this makes many projects unable to enter the market but there is a positive side that is increasingly being recognized by the Government of cryptocurrency and this is a good development for investors because it will narrow the space scam project move

The thing is... CBDC is not crypto. It's something that can be done even without a blockchain. It's centralized. It's just another digital representation of fiat money.
And since it's their stuff, they can easily make laws only for this, ignoring or banning actual crypto.

So unfortunately your hopes don't really have any basis. I know because I had similar hopes until I realized the truth.

[stompix]

Afroblocks (formerly Blockchain Society Ghana) instead wants the central bank to emulate “financial projects that are borderless and decentralized like modern-day cryptocurrencies.” According to Omar Majdoub, one of the association’s co-founders, doing this will increase the likelihood of the CBDC’s success.

We have alternative already, Bitcoin is an alternative, it is decentralized and private if you want privacy. Then, why not leave the government to centralize their currency as they want it to be. I think the complain I expect should be about how safe and secure will e-Cedi be, not about decentralizing it or not.

Their statement is unfortunately plain stupid.
How can you ask an entity that is run by the government, that is functioning on laws issued by their parliament to issue a currency that is out of their control, using terms like " borderless". Borderless in what? Even the new CBDC will be borderless even my current version of the digital euro I have on my card is borderless, they just like to definitions to try and make a point.

Do you want the central bank to issue a decentralized coin but at the same time be the one responsible for regulating usage and maintaining it? Seriously, how do they come with these ideas?

We were never consulted about this initiative, all the facts we know are what was in the BOG’s public releases. In fact, public details on the CBDC are very sparse. We would be more than willing to contribute our expertise if called upon.

No offense, but...who are you, and why the government should contact you and care about your opinion? If any no-name NGO would have a say in a countries' finances we'll be in a way deeper hole than we are now.
Leave the centralized and official things to the government and do your own decentralized projects alone, if you can. If you're not capable let others do it but don't try to get a free piggy ride, but anyhow, the first thing they should show they are capable of is at least keeping their own website online.

[Shenzou]

How effective is this news against CBDC? The bank of Ghana warns against developing CBDC for its country, calling it old traditional thinking lol, check out the link below for full news

https://news.bitcoin.com/bank-of-ghana-urged-to-resist-developing-cbdc-based-on-old-traditional-siloed-financial-thinking/

In my opinion having a digital coin created and controlled by the central bank is no good than using fiat currency, what the people need is a blockchain based currency that does not involve any sort of centralization and i think that anyone who has called for making crypto a thing will be disappointed with CBDC, and they should stand by the idea that they should go for a  decentralized currency.

[Rruchi man]

In my opinion having a digital coin created and controlled by the central bank is no good than using fiat currency...

The people in government know what to do sometimes, but they just avoid doing it sometimes by hiding behind the act of them trying to do something. It is all a charade.

They know cryptocurrency takes the power out of their hands, so they don't like the idea, so they try to bring their own digital currency...but because information is free, we all know that it is not acceptable so far as it remains centralized and them in control.

[Ucy]

I think it's a Blockchain Group probably from Ghana that is issuing the warning to Bank of Ghana.
I guess the warning is as effective as its usefulness and safety to the Bank. Maybe send them compelling proposal they could try on their own. If that can achieve anything the Bank wants to achieve with CBDC the right way, they could adopt it, assuming there are independent minded people in the bank who understands what can be achieved with crypto

[Obito]

That's a bit of a reverse for them, isn't CBDC supposed to be the new technology plus it's unlikey thst their citizens are going to use CBDC from other countries and even if they were to develop one, there's a possibility that it's not going to be popular to their people.