CBDCs are not cryptocurrencies

[Charles-Tim]

I read crypto news often until recently that I do not really have the time, all I thought before was that CBDCs are cryptocurrencies, crypto news are always giving updates about CBDCs, like the countries that are ready for CBDC pilot and other such related news. I was actually thinking CBDCs are actually cryptocurrencies before until eNaira was launched. All I can say that I know but will not actually change is that the crypto news are misleading people about CBDCs if what they are all about (I mean crypto news) is cryptocurrencies, CBDCs are not cryptocurrencies.

What are CBDCs
Without not going long about this, CBDCs are Central Bank Digital Currencies, not Central Bank Digital Cryptocurrencies. I am not a Chinese, so I did not know much about Digital Reminbi (Digital Yuan) neither do I know much about any country that had created its own CBDC. I am specifically using eNaira as an example while I believe all other CBDCs will be birds of the same feathers. (Correct me if I am wrong about this).

CBDCs are created by the Central Banks to benefit the commercial banks and all other banks controlled by the Central Banks, that is why you can be able to transfer fiat (like eNaira) from bank to CBDC wallet (like eNaira Speed wallet) with the help of your bank support, I can even see it new on my bank's online banking to transfer naira to eNaira wallet.

I have come to think of it, there is nothing different from e-wallets, online banking and the so called CBDCs other than sender's will not send to bank account but send to code (like an address or maybe called address on other CBDCs wallet). If I am wrong:

Are CBDCs built using blockchain technology?
Is it right CBDCs news are trending on crypto news sites while they are not actually cryptocurrencies?
Are CBDCs cryptocurrencies?

[dbc23]

The only similarity between CBDCs and crypto currency is that most CDBC are built on the Blockchain network but they presence of the third party involvement has discredited it from been a cryptocurrency. CBDC is just a digital fiat currency that is created to easy or fasten transaction digitally but not with the mind of replacing fiat it serves basically as a compliment.

[bitmover]

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.

I believe they will be faster and cheaper to transfer (international transfers are slow and expensive), they will be easier to use. On the other hand, they will be basically surveillance coins. Governments will be able to track our financial transactions easier.

They are inevitable. If some of them will use blockchain technology or not, that doesn't matter: they will always be centralized and they will never be a competitor to bitcoin.

[avikz]

People who believes that angels are real, only they will believe that CBDCs are cryptocurrencies. CBDCs are only digital representation of fiat currencies. If you are using debit cards and net banking in your daily life, CBDCs are going to offer same experience only!

But it has additional benefits for the government. It's a great surveillance tool. Your financial privacy will be gone for ever. Government will be able to track every transaction that you do and every singe money you have earned.

[Silberman]

People who believes that angels are real, only they will believe that CBDCs are cryptocurrencies. CBDCs are only digital representation of fiat currencies. If you are using debit cards and net banking in your daily life, CBDCs are going to offer same experience only!

But it has additional benefits for the government. It's a great surveillance tool. Your financial privacy will be gone for ever. Government will be able to track every transaction that you do and every singe money you have earned.

I am pretty sure that most of those that are part of the forum know this, what worries me is the average person, they are gullible and if the government says to them that their digital currencies are better than bitcoin then they are going to believe it as they are going to tell that lie all what they want since the media is their ally, and then most people will find themselves using an even more restrictive form of fiat, I think it is not exaggeration to say the battle we will see between bitcoin and those coins could decide the future of humanity during the next centuries, because if bitcoin fails to convince people to adopt it the future will have a huge centralized and authoritative government no one can say anything against because of the fear they will lose everything they have worked so hard for.

[Wexnident]

From what I gathered CBDC is pretty much just online fiat? Though I think there might be some developments where it could use blockchain, most people expect it to actually just be digital fiat since well, you know, it's centralized. The most people could get from it is that it would be far more convenient in terms of online transactions since it's pretty direct. I think why most media outlets report of CBDC at first was because it was thought to be something similar to crypto which is run in blockchain, but further developments said otherwise. I really won't consider it as crypto tbh.

[fiulpro]

I do think that CBDC's are actually an extension of fiat so their scope is actually already predefined by their owners. At the end what we can do is, use them, hold them for their usage since am pretty sure that the government would provide us with some discounts etc..but we cannot use them as investments, we cannot use them as bitcoins or any other cryptocurrencies since their volatility would not only be controlled but it would also be fragile, predefined.
How would we know that the corruption is not gonna affect them ? We can use them against visa or Mastercard but we won't be able to really call them cryptocurrencies can we ?
As long as there is a centralized body it would be pretty much *fiat* but nothing else. We can see the digital yuan and see how it works out. But a funny situation here, I just went to see the definition for digital yuan what I found on the Google was :

Digital Yuan is a state-sponsored virtual currency designed to track all currency movements.

How funny that is.

[RapTarX]

Damn! I used to know CBDC as Central Bank Digital cryptocurrency all these days and I supposed it would be another cryptocurrency with more control over it. But it seems same as the mobile banking almost which we are using everyday. What the fuck are govt trying to get? Giving false impression LOL. Until now, I haven’t had a closer look on this.

[Rruchi man]

What are CBDCs

Hello OP, there's an extensive post that details what CBDC's are, that you and others that care to read through will find interesting and informative.

https://bitcointalk.org/index.php?topic=5288713

CBDCs are only digital representation of fiat currencies.

Yes, and truth is with the awareness that CBDC's will bring, most people who haven't heard about cryptocurrency will now do, because there will always be comparison between the two whenever the topic is brought up.

[Ozero]

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.

I believe they will be faster and cheaper to transfer (international transfers are slow and expensive), they will be easier to use. On the other hand, they will be basically surveillance coins. Governments will be able to track our financial transactions easier.

They are inevitable. If some of them will use blockchain technology or not, that doesn't matter: they will always be centralized and they will never be a competitor to bitcoin.

The current private stablecoins are very helpful in dealing with decentralized cryptocurrencies. Due to their usefulness in the cryptocurrency market, they began to be mistakenly classified as cryptocurrency, given the fact that they were also placed in CoinMarketCap and other similar tables.
Central bank government stablecoins are essentially the same as private stablecoins. But this is not a cryptocurrency. They are not even all applied using blockchain technology. First of all, this concerns the digitized Chinese yuan, which, they say, is not built on blockchain technology. It's just that we finally need to see their work in practice in order to really see it.

[BlackHatCoiner]

The only similarity between CBDCs and crypto currency is that most CDBC are built on the Blockchain network but they presence of the third party involvement has discredited it from been a cryptocurrency.

Which CBDCs use the block chain technology? None. A CBDC could be imagined as a Google spreadsheet with limited rights such as changing the values of each table etc. If Google decides to create more money, the users can't question it. It's just like the traditional monetary system where FED prints the banknotes.

No indication of monetary freedom <=> No use of the block chain technology.

[Mahanton]

CBDC's are heavily centralized and they do totally opposed on what cryptocurrency means and still calling them off to be one?
This is just like digital fight and not surprising yet most banks or some countries had created their own.So what you do call of them?
Have read up above on having no use of blockchain tech? thats what makes it more convincing.

[DrBeer]

CBDC is definitely not a cryptocurrency. As for me, the main goals of this technology are:
1. Get a more high-tech platform for the national currency. This includes lower transaction overheads, lower collection costs, etc. classic banking daily need, but more high-tech and functional
2. And here begins a more interesting moment - monitoring and control of cash flows. As a rule, it will most likely go in parallel with the abandonment of fiat currency. The technologies borrowed from the blockchain allow you to do a lot of things that could not be done with ordinary non-cash money. Opportunities appear the broadest - from tracking the movement of funds to blocking the movement of certain "wallets".

[odolvlobo]

The only similarity between CBDCs and crypto currency is that most CDBC are built on the Blockchain network but they presence of the third party involvement has discredited it from been a cryptocurrency. CBDC is just a digital fiat currency that is created to easy or fasten transaction digitally but not with the mind of replacing fiat it serves basically as a compliment.

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.
I believe they will be faster and cheaper to transfer (international transfers are slow and expensive), they will be easier to use.

All fiat currencies are digital in nature, and I don't know of any CBDC that uses or plans to use a block chain.

My understanding is that the difference between a fiat currency and its CBDC variation is simply the payment system. Compared to a legacy transaction being handled by banks, a CBDC transaction is handled by the central bank directly.

[Gozie51]

They are obviously not cryptocurrency , just the fiat turned into digital for accessibility globally and the reason they are not cryptocurrency are that they are centralised unlike bitcoin which is not controlled. The government still has absolute control and regulation of the digital currency. Although some crypto are centralised but are encrypted with blockchain unlike digital currency that is more as a country's currency.

[chrisculanag]

I search it about CBDC and i read that is not a cryptocurrency but is called digital money that can use to a payments online. Means that its is only made of the government ,but we dont know if they are want to accept a cryptocurrency to their platform partner to the digital money. Like others said this is centralized controlled by the government.

[Yogee]

I can see the confusion on the letter "C" hehe. I read a few articles about CBDC myself but it never occurred to me as a cryptocurrency and it was never portrayed that way.

They are obviously not cryptocurrency , just the fiat turned into digital for accessibility globally and the reason they are not cryptocurrency are that

They are centralised unlike bitcoin which is not controlled. The government still has absolute control and regulation of the digital currency.

How do you view stablecoins like USDT then? It's also highly centralized and governments can impose control on the issuing company Tether.

[paxmao]

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.

[DooMAD]

But it has additional benefits for the government. It's a great surveillance tool. Your financial privacy will be gone for ever. Government will be able to track every transaction that you do and every singe money you have earned.

Not just the ability to track payments, but to control them as well.  You have family who live in a nation which has been sanctioned by the country you reside in?  Good luck sending remittances to them.  That could easily be blocked.  Want to make a donation to an anti-government organisation?  Nope.  Not happening anymore.  Your money won't be yours anymore.  It's a fascist's wet dream.  They will have the power to block or reverse any payment at any time, without warning.

[The Sceptical Chymist]

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.