CBDCs are not cryptocurrencies

[Hydrogen]

For years we've heard faint rumblings of a cashless society of the future.

We have witnessed a war against cash, for some time now. CBDCs are the planned end product of the war on cash, to push a cashless society.

Economic conditions must be suitable before this precedent can be established. Policies like a global minimum tax would probably need to be established, before CBDCs and a cashless society could be rolled out. I would guess that is what central banks are waiting for.

The world would have to be more centralized and consolidated beneath a single state regime, than it is now. Before CBDC and cashless society could be made a reality.

Centralization afforded by CBDC creates monopolies. Which in turn create an environment ripe for exploitation, malice and abuse. Supply chains being centralized and monopolized within the borders of some nations might be considered a negative precedent. How much better or worse could a global digital currency be?

[Darker45]

Does the second C of CBDC even matter when the first C means Central? Whether the second C means Cryptocurrency or merely Currency is not the point. The point is that this thing is centralized. Therefore, whether they're calling it cryptocurrency or not is immaterial. It will be fully centralized, issued by the central bank, controlled by the government, distributed according to the whims of a few powerful people up there, and so on.

It does not even matter whether CBDCs are using blockchain or not. There's no difference between not using a blockchain and using a centralized blockchain.

[southerngentuk]

I still understand it this way, CBDC helps the transaction speed, the cost is optimized. The stages of third-party intermediaries are completely reduced, and at the same time, the transaction process is also faster and more convenient. Contributing to the promotion of national economic interests by transactions are done quickly, procurement activities are expanded, and cash flow is more developed. System recovery and security are enhanced by the outstanding features of distributed digital currency. Effectively apply each country's monetary flow policies, with tighter controls on transactions. And recently this term has appeared in popularity, when major countries claim to study CBDC, but those theories need time to be tested because I have not seen any real cases.

[ChiBitCTy]

As far as I know, CBDC is just a digital version of the fiat currency we all know. They are an evolution of what we have now.

That's been pretty much my understanding of what they are, but it's always puzzled me why a government would want to implement a national cryptocurrency for any reason other than financial surveillance.  Right now, there might be a little bit of separation between banks and government, but it isn't much.  If the government created a currency based on a blockchain that wasn't anonymous, it wouldn't matter if people still used it with the banking system because they'd be able to see all of your financial transactions from the present all the way back to whenever you started using the CBDC.

Physical currency is quickly becoming antiquated, which seems to bother no one but is disturbing to me.  At present, the most anonymous form of money is cold, hard cash--as long as what you use it for isn't caught on some security camera and preserved for all eternity. 

People's attitudes toward a lot of things bother me these days--from mask-wearing to giving up privacy to companies like Facebook-- and I see the world headed down a very dangerous path.  Something like a CBDC might easily catch on in China, but man....I hope it never becomes a reality in the West.

I feel you on much of this. I don’t think cold hard cash is going away anytime soon, at least here in the US. They would certainly have to introduce digital cash before that ever happens, which I think will be met with resistance for some time. The only thing maybe even more anonymous is Monero perhaps, as with notes there are serial numbers on them so they can be tracked / traced to an extent. Of course coins cannot be. People really do need to start giving a shit about privacy more. I invest heavily in semiconductors because they are a major part of the future but sadly that future means watching our every move from every angle, thanks to semiconductors.

[Charles-Tim]

Which CBDCs use the block chain technology? None.

One thing I like about bitcoin is its transparency, right from the white paper to blockchain and even to the open source wallets we can decide to use. All I noticed about CBDCs is no transparency. I have tried to want to know how CBDC is working but nothing to prove that it uses blockchain technology, nothing like mining, obviously. Okay if transactions are made and no mining, are there still nodes or any other things representing nodes for validation after transactions are made into blocks (although if not mining) in which block will build up on blocks to make up chain of blocks which is the blockchain, I do not also think so, nothing even like block makeup not to talk of chain of blocks. CBDCs are truly not going to be using blockchain technology in my opinion.

Something like a CBDC might easily catch on in China, but man....I hope it never becomes a reality in the West.

All I wanted to do is to use my country's CBDC when it was created last month, but what I noticed was that there is no convenience it can render that my online banking apps can not deliver me, so I have not seen any reason to use it at all. In fact, I got no option than to later delete the app as it is not yet useful for me.

[Argoo]

I still understand it this way, CBDC helps the transaction speed, the cost is optimized. The stages of third-party intermediaries are completely reduced, and at the same time, the transaction process is also faster and more convenient. Contributing to the promotion of national economic interests by transactions are done quickly, procurement activities are expanded, and cash flow is more developed. System recovery and security are enhanced by the outstanding features of distributed digital currency. Effectively apply each country's monetary flow policies, with tighter controls on transactions. And recently this term has appeared in popularity, when major countries claim to study CBDC, but those theories need time to be tested because I have not seen any real cases.

Yes, CBDCs will work much more efficiently compared to conventional non-cash payments of states, so they will soon appear in large quantities anyway. But finance doesn't like rushing. Therefore, we are not yet seeing the emergence of central bank stablecoins to see how they will work in practice. The digitized currencies of states, of course, cannot be classified as cryptocurrencies, although they will mainly use blockchain technology and even cryptocurrency platforms such as ethereum.

[Charles-Tim]

The digitized currencies of states, of course, cannot be classified as cryptocurrencies

Yes, CBDCs can not be classified as cryptocurrencies because they are not cryptocurrencies.

although they will mainly use blockchain technology and even cryptocurrency platforms such as ethereum.

CBDCs are not currencies like USDT, USDC and others that makes use of other cryptocurrency's blockchain.

Can you explain how CBDCs are based on blockchain? Or is it what you just read on the news just like we did? Do not follow all you read on the news, some are misleading. But if you are certain about this, then prove it.

[Ucy]

Don't know much about the CBDC and the digital fiat currencies but what I can assure you is that no centralized currency is True Cryptocurrency, you will be right to call them false cryptocurrencies (but not false currencies) because what makes a currency True cryptocurrency is the decentralization, immutablity, censorship resistant, transparency, etc. These feature kind of gurantee that there encryption and other security features can not easily be tampared without public network rejecting it. Fiats are typically run like private currencies so nothing can be guaranteed due mainly to centralization and lack of transparency

[kryptqnick]

People here say CBDC is merely a digital representation of fiat, but that's not quite true. After all, lots of people deal with digital representation of fiat via online banking and debit cards, and yet all these countries that have such things aren't considered to have CBDCs. So it's not just a digital version of fiat. AFAIK, they're built of blockchain, which is why people often consider them cryptocurrencies,  but it's really a matter of terminological disputes because if we consider decentralization to be essential for cryptos, they're not cryptos, whereas if only blockchain is essential, they are. But once eNaira was launched, and I read some explainers about it, I also got pretty confused about CBDCs, and I'm not sure that I understand them anymore. Perhaps if more appear over the years, the answer will become more evident.

[Dragonfund]

Why would anyone count CBDC as cryptocurrency, there is no similarities except that they are mostly hosted on private blockchain where the government controls everything. The decision upgrade, proposals and implementation is always carried out by the government and you cannot do anything when your account get confisticated.
I wouldn't like to deal with any of them because you are like to provide your details to the government and I think you may be limited to amount of funds you can hold on your wallet.
You will ways be watch using such wallet.

[worle1bm]

Of course, I did not even think that it should actually have to be explicit about this. In fact, anything that is not decentralised for me does not count as a true crypto. For example, Ripple or even some of the less centralised alts out there are not crypto in my dictionary. Needless to say that government issued digital currencies are nothing of the kind of crypto. They do however have some useful applications for the common guy, as they technically could allow you to hold an account without a commercial bank, directly with the central bank.

Government is just coping with digitalization of financial payment system from the traditional ones but still it's centralised system and this is how they will be working just like normal fiat or digital cash in other sense but the power lies in their hand only.They have just discussing things and have not finalized any plans for them or how will they use Blockchain technology or not as they are still exploring the vulnerabilities or how to integrate the system but it will take them time and cannot succeed like it.

[BlackHatCoiner]

Something like a CBDC might easily catch on in China, but man....I hope it never becomes a reality in the West.

You'll still have your cryptocurrencies which (some) are essentially anonymous electronic cash. Even if it happens, which is what we're heading towards to, you will have a way to protect yourself.

All I noticed about CBDCs is no transparency. I have tried to want to know how CBDC is working but nothing to prove that it uses blockchain technology, nothing like mining, obviously.

Imagine this:  A government decides to create the CBDC “Absolut”. Then, you can use that one as cash instead of the banknotes in your pocket. Not only do you know nothing about the transactions (opaque ledger), but you also have a big brother watching the transactions you make.

It's against privacy, freedom and the ideology that cash must not be in the faith of a central authority. That the cash must not have a central point of failure.

[lixer]

Without not going long about this, CBDCs are Central Bank Digital Currencies, not Central Bank Digital Cryptocurrencies.

This way a central bank currency can be e either digital currency for a cryptocurrency we cannot be sure about what they are going to do in the future but as of now as far as I am concerned I have not read any government so far creating such currency on blockchain. If they are creating on blockchain then that should be kind of cryptocurrency but it is centralized one in a way controlled/monitored one.

In short, a CBDC can be a cryptocurrency if it will be built on blockchain. Still, I am sure no government will be preferring to have open ledger based momentary system hence they may not prefer blockchain based currencies.

[magneto]

I think that some CBDCs are going to use blockchain technology.

So it's not completely accurate to discount them entirely as cryptocurrencies. It's just that they are not decentralized cryptocurrencies the way Satoshi initially envisioned.

Personally, I don't see anything wrong inherently about CBDCs except for the fact that it's fiat. And because that it is fiat, you shouldn't treat it as an investment the way you would treat BTC a long term store of value.

[Stedsm]

Are CBDCs built using blockchain technology?

I guess not. Because if they add Blockchain to CBDCs, there opens an opportunity for people to try and hide their transactions if any loophole is found by them.

Is it right CBDCs news are trending on crypto news sites while they are not actually cryptocurrencies?

True, because people need food to live, the same way they need something new in terms of news to learn about what's going on in the world. So even if these are not cryptocurrencies, they're still being advertised as the same.

Are CBDCs cryptocurrencies?

According to my belief, people will be entrusted to believe that these are cryptocurrencies while they won't be, because there won't be any cryptography involved if I'm not wrong as all they're planning to make is an e-wallet with their country based currency which you won't be able to send outside your country (remit in simple words) to people in other countries so not to evade the fees that are chargeable, i.e.; sending fees, forex fees, etc.

[Gyfts]

Which CBDCs use the block chain technology? None.

One thing I like about bitcoin is its transparency, right from the white paper to blockchain and even to the open source wallets we can decide to use. All I noticed about CBDCs is no transparency. I have tried to want to know how CBDC is working but nothing to prove that it uses blockchain technology, nothing like mining, obviously. Okay if transactions are made and no mining, are there still nodes or any other things representing nodes for validation after transactions are made into blocks (although if not mining) in which block will build up on blocks to make up chain of blocks which is the blockchain, I do not also think so, nothing even like block makeup not to talk of chain of blocks. CBDCs are truly not going to be using blockchain technology in my opinion.

Something like a CBDC might easily catch on in China, but man....I hope it never becomes a reality in the West.

All I wanted to do is to use my country's CBDC when it was created last month, but what I noticed was that there is no convenience it can render that my online banking apps can not deliver me, so I have not seen any reason to use it at all. In fact, I got no option than to later delete the app as it is not yet useful for me.

I never got the impression of CBDCs that they ever were supposed to be transparent. Central banks have their intent pretty clear, they want to retain control over a currency and in a digital age, cashless seems to be the norm. It's not that cash ever had any intrinsic value anyways since shifting away from the gold standard, CBDC's offer the same type of concept, digital tokens created out of thin air, no protocol, and a way of controlling the currency flow of a country.

[Coyster]

CBDC's isn't going to work or function like decentralized cryptocurrencies that we know, they are just going to be digital versions of the issuing countries fiat currency, the government knows that, but most of the people (citizens) prolly do not and that's maybe going to play into the hands of the government as they try to 'sell' their CBDC idea to their people. CBDC's is going to be centralized and will be controlled by the government just as they do with fiat.

I'm pretty sure many people wrongly believe they can invest in CBDC's just as they do with Bitcoin, and I think it's the fault of the government for making CBDC's look like a competition to Bitcoin when truly it isn't and will never be, one is controlled by its users and the other is controlled by the government, they do not function in the same way.

[Fatunad]

I think that some CBDCs are going to use blockchain technology.

So it's not completely accurate to discount them entirely as cryptocurrencies. It's just that they are not decentralized cryptocurrencies the way Satoshi initially envisioned.

Personally, I don't see anything wrong inherently about CBDCs except for the fact that it's fiat. And because that it is fiat, you shouldn't treat it as an investment the way you would treat BTC a long term store of value.

CBDC is a digital version of cash—the physical money issued by central banks using blockchain technology
Source: https://kuenselonline.com/is-it-not-time-for-blockchain-based-cbdc/#:~:text=CBDC%20is%20a%20digital%20version,hack%2C%20or%20cheat%20the%20system.

Same as digital fiat but this one just attached that blockchain  technology which i dont see anything something different comparing
it on e-fiat.

So its not really that right on having or  treating them as a cryptocurrency entirely.

[Reid]

I have this thought that anything that is 1:1 in their respective country money or anywhere is not a cryptocurrencies.
Heck, I don't even consider USDT as cryptocurrency but just fiat itself in digital form.  
What worries me is if people are investing on this kind of units and they don't even know there is no movement that will happen because of lack of knowledge. At worse cases it may become the source where government starts subtracting money from you when you fail to pay the fines named after you.

[alpamar99]

I prefer when this CBDC is said to be fiat money but in blockchain version. because of the system and the rules that are applied they are the same as fiat and they are. but with a more recent version by applying blockchain technology.
this is the same as wanting to make a match by doing the same way of initiating blockchain as crypto but with a fiat system