The War Between Cryptocurrencies and Central Bank Digital Currencies (CBDCs)

[Rbsprih.Mbjblpsp]

The War Between Cryptocurrencies and Central Bank Digital Currencies (CBDCs) is the fought between Globalization and Antiglobalization

As cryptocurrencies, such as Bitcoin, become an increasingly established part of the financial landscape, central bankers worldwide are fired up about the idea of digital currency. Specifically, they are increasingly intrigued by the idea of central bank digital currencies (CBDCs).

CBDCs are very different from cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital tokens created by a distributed network or blockchain using cryptographic tools. While cryptocurrencies are decentralized, CBDCs are centralized; while cryptocurrencies offer anonymity, CBDCs would allow central banks to know exactly who holds what. While cryptocurrencies are generally created using blockchain, CBDCs would likely run on different technological platforms (although the use of blockchain is not impossible).

In recent times, many countries worldwide are already researching and developing their own CBDC. The People's Bank of China (PBoC) is already piloting CBDCs. To develop centralized digital yuan, the Chinese government completely banned cryptocurrencies.

As CoinGeek reported a few months ago, the Bahamas launched a Sand Dollar CBDC. While the Bank of Jamaica has partnered with an Ireland-based company—eCurrency Mint—to pilot its CBDC. Brazil and Mexico are already planning to implement their CBDC by 2023.

One of the partners for the Peru CBDC, the Reserve Bank of India, plans to launch a trial implementation of the digital rupee before the end of 2021. Reserve Bank of India Governor Shaktikanta Das previously said: “We are being extremely careful about it because it’s a completely new product, not just for RBI but globally.”

Hong Kong’s Monetary Authority and the Monetary Authority of Singapore also started exploring the possibility of developing a CBDC.

Japanese consortium of 74 Japanese firms plans to issue bank deposit-like digital yen by end of 2022. The consortium plans to experiment with large business transactions using the digital yen. The consortium's subcommittee on Settlement in Industrial Distribution, led by Mitsubishi, will be testing "the automatic execution of contracts using digital currency in the settlement of maritime transportation for transactions". The consortium will also be releasing a beta version of the digital currency marketplace for non-fungible tokens (NFTs) by 2022.

from https://www.youtube.com/watch?v=zrlbPzBqRs0

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[Charles-Tim]

There is nothing special about cryptocurrencies CBDCs, they are fiat.

The War Between Cryptocurrencies and Central Bank Digital Currencies (CBDCs) is the fought between Globalization and Antiglobalization

Functionally, there is no war between cryptocurrencies and CBDCs because CBDCs are fiats, cryptocurrencies are digital assets, a digital asset that is still easy to spend, the reason they are also currencies.

CBDCs are very different from cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital tokens created by a distributed network or blockchain using cryptographic tools.

Tokens are cryptocurrencies that are built on another coin's blockchain, bitcoin is the first cryptocurrencies and has its own blockchain, bitcoin is a coin not a token.

[mk4]

Saying that there's a war between cryptocurrencies and CBDCs is like saying that cryptocurrencies are at war with the traditional fiat currencies. Nope. bitcoin is the clear winner in the currency/SoV category and there's not a single thing that comes close.

[Ozero]

Of course, the stablecoins of the central banks of states are not going to replace cryptocurrencies. They do not have such a task, and indeed there is no possibility.
So far, there is no war between the digitized currencies of states and the cryptocurrency. So far, we still have little idea of how their relationship will develop in practice. But, most likely, CBDCs will compete with cryptocurrencies as a means of payment. Cryptocurrency is already very weakly fulfilling this role. What will happen next, we'll see. Very few CBDCs have been released yet.

[zasad@]

Central Bank Digital Currencies (CBDCs) will be at war with commercial banks, not cryptocurrencies, because commercial banks will not be needed due to their slowness.
Even in our modern time, it can take up to 7 days for companies to transfer payments between countries, and CBDC will reduce this period to several minutes.

[bL4nkcode]

Central Bank Digital Currencies (CBDCs) will be at war with commercial banks, not cryptocurrencies, because commercial banks will not be needed due to their slowness.

This.

Before comparing crypto especially bitcoin to CBDC, people should know why us people use bitcoin/crypto in the first place.
Aside from being anonymous (actually pseudonymous) transaction, people more likely use bitcoin due to its store of value (investments) while CBDC is actually a fiat in a digital form, with fix value, still be affected on inflation, bitcoin is not.

Local banks will instinct when a country do make/mainstream their own CBDC especially in cross border transfer which is mentioned already, its slowliness.

[dkbit98]

Removing all cash, however bad current system now is, and replacing it with 100 times worse digital alternative is terrible for privacy.
I think that we need to have some alternative for cash that is not in digital form, maybe having some Bitcoin paper notes would be a good idea.

Central Bank Digital Currencies (CBDCs) will be at war with commercial banks, not cryptocurrencies, because commercial banks will not be needed due to their slowness.
Even in our modern time, it can take up to 7 days for companies to transfer payments between countries, and CBDC will reduce this period to several minutes.

So you are saying that central banks will be in war with commercial banks?  
There is no difference between central or commercial banks because they are owned by exact same people.
CBDC are not created to speed up anything, only reason for their creation is for corporations/governments to have more surveillance and control of their citizens.