Are we entering the era of CBDCs?

[zaesvlas]

Now in general it is very difficult even to define the era into which we have already entered. Time is changing quite quickly, and technology is rushing along with the times.

[1714690329]

1714690329

[Digitalbitcoin]

If every country trying to introduce its own CBDC(Central Bank Digital Currency) it means these countries are finally understanding the power of Blockchain technology. And this will be the future of tomorrow's world.

But I personally think about it with the specifications of Blockchain and Cryptography, as these are anonymous, decentralized, and open-source technologies, and if CBDC gets introduced then it may against the specifications of the Blockchain and Cryptography technology. As CBDC will be completely centralized, and even in control of the government. So it will be more complicated for users to access CBDC globally due to inflation, and the price.

[Xal0lex]

China had not chased all miners out of the country and banned all cryptocurrency activities.

China banned mining but only chased away big mining farms not all miners from the country.
Additionally China has never banned bitcoin or its usage and from other cryptocurrencies as far as I know they have only banned ICOs, and rightly so.

Not really. Let's go in order:

In May, China began restricting crypto in bancoing and payment services. And on September 24, China's central bank declared all crypto activity illegal, from mining to buying, to selling.

That is, a complete ban on crypto was introduced. https://www.bbc.co.uk/news/technology-58678907.

Next, China blocked all cryptocurrency tracking sites, as well as Alibaba stopped selling any mining equipment and the final touch was China's announcement that any investments in crypto are now illegal.

These are the measures they took to completely kick cryptocurrency out of the country and give complete freedom from competitors to their digital yuan.

[eaLiTy]

If every country trying to introduce its own CBDC(Central Bank Digital Currency) it means these countries are finally understanding the power of Blockchain technology. And this will be the future of tomorrow's world.

Finally government understands how to control the finance of everyone using them with the help of blockchain technology and have a much better grip on the financial transactions of every individual. I will stay away from CBDC for most part and i am sure they will have the ability to freeze certain transactions and even your funds.

But I personally think about it with the specifications of Blockchain and Cryptography, as these are anonymous, decentralized, and open-source technologies, and if CBDC gets introduced then it may against the specifications of the Blockchain and Cryptography technology. As CBDC will be completely centralized, and even in control of the government. So it will be more complicated for users to access CBDC globally due to inflation, and the price.

It is decentralized but not anonymous, there is no complication in using them but valuation changes according to the forex market.

[romero121]

The world is getting into the usage of cryptocurrencies in large scale. Right now governments weren't able to have control over the financial system. Just to keep everything under control governments have planned to have their own CBDC. As a result more and more countries are into research for the same and many have already launched their CBDC's. In recent months there were news about CBDC launch from Iran, Jamaica, Malaysia and it keeps counting. However the real-time usage of CBDC's can't restrict common people who have been users of bitcoin and other cryptocurrencies.

[TheGreatPython]

There is nothing too late about it.

I have to disagree here because it depends on the purpose of the CBDC. For domestic use, you are right it will never be too late. But if it is aiming for international use (which I have a feeling the pioneers are) it is a race of who can create it first and get others onboard to use it.
The same China that has been taking over the world economy is leading this too. With the ongoing trend of dumping US dollar as reserve currency a void is being created that unfortunately China seems to be trying to fill.

I believe that it doesn't matter how late you are, if you are a big nation then it will be used. Imagine USA starting theirs 3 years after china and Russia, do you really think that people wouldn't use their CBDC anyway? What do you calculate the bitcoin price with? I mean bitcoin is not tied to any money at all, it is a currency of its own, so when calculating you are not forced to use dollars, you could use euro, ruble, yuan and when you are dealing locally you do.

But, when talking about it globally, we talk about the price based on dollars, why? Because the USA is the biggest nation in the world economically and always stay that way. Even if they are not the richest one day, they will always be financially the most powerful.

[kaka_Shipai]

They are trying to take the charge of the digital currency. And this CBDCs are part of the same idea. I don't think that it'll work out, it might for a while but in the long run, people are going to go decentralized currencies, as they give them full control on their money and somewhat anonymity

[Agbe]

It is possible for all Countries to adopt CBDC, because they discovered that the youths are no longer using the Fiat currencies to do their transactions of buying and selling of goods and services online. That is making the fiat currencies to devalue in their various Countries. But I don't think CBDC will take over bitcoin because CBDC is control by central bank of the country while bitcoin has no central bank control, bitcoin is a decentralized system of Currency which means no individual control it, but each individual control their own wallet not the whole system like fiat currency. And I believe, governments are trying to use this method (CBDC) to Link their E-Currencies to bitcoin and control it.  But before CBDC will be fully utilized in the whole world, it will take time. Now the world is in serious search on the data base of bitcoin.

[pooya87]

That is, a complete ban on crypto was introduced. https://www.bbc.co.uk/news/technology-58678907.

Well news agencies like BBC have spread so much bullshit that I never trust them, specially when it comes to news from other countries. So unless you are from China and can clarify this http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4348521/index.html document by the Chinese government I stand on what I said.
It seems to be saying 1. cryptocurrencies like bitcoin are not legal tender so they can not be used as payment. 2. You are not allowed to run an exchange service 3. You are not allowed to use an offshore exchange service. 4. Any losses you have when investing in cryptocurrencies is on you.

I believe that it doesn't matter how late you are, if you are a big nation then it will be used. Imagine USA starting theirs 3 years after china and Russia, do you really think that people wouldn't use their CBDC anyway?

As I said it depends on the purpose.
For example if it is gov-USD replacing USDT then sure, it doesn't matter when the US gov. gets on board.
But if we are talking about an international payment system and if China succeeds in constructing the infrastructure and get everyone on board then no it would be too late for anyone else trying to get on board. It's the same as 1945 when WWII ended and suddenly USD became reserve currency because US was first mover and succeeded on getting everyone to accept it.

[Abiky]

All this would be fine if governments did not go the way of China, after launching their own CBDCs to monopolize the digital payments market. There is no telling how the digital yuan would have evolved or what popularity it would have had if China had not chased all miners out of the country and banned all cryptocurrency activities. The Chinese were taken away from their right to choose whether to use bitcoin or to use centralized CBDC. I really hope that there will not be such cases in the world practice anymore and CBDC will complement the crypto industry, not eradicate it.

China is a communist country so forcing the use of CBDCs is nothing out of the ordinary. They stripped down innovation by banning cryptocurrencies in their entirety. The government doesn't want to lose control over people's money, so it decided to quickly take action before it was too late. China is the first country to launch a CBDC, but there's still a lot of work to be done to fully digitize the mainstream economy. Considering that development of a new digital currency does not happen overnight, it may take years before we enter the era of CBDCs.

I wouldn't care about this, as long as decentralized cryptocurrencies exist. With decentralization, comes freedom. Who knows if the advent of CBDCs make decentralized cryptocurrencies like Bitcoin and Ethereum more popular in the future? Just my thoughts

[masterrex]

IMO, I believe and I can say that CBDC development nowadays is gaining much traction in most territories that adopted cryptocurrency services, and it's noticeable because in my country it was also announced by our Central Bank and I can say that it was in the advanced development stage. but I dont see this as a treat to Bitcoin because it was just a digital version of our fiat currency, but still, it depends on the country that implemented it and I hope they will not follow what China did.     

[franky1]

If every country trying to introduce its own CBDC(Central Bank Digital Currency) it means these countries are finally understanding the power of Blockchain technology. And this will be the future of tomorrow's world.

Finally government understands how to control the finance of everyone using them with the help of blockchain technology

but china's digital Yuan (e-cny) is not using a blockchain at all..
instead its using 'federated smart contract tokens'

basically chinas central bank splits its initial value with about half a dozen commercial banks/payment services. in a multisig signed by all parties.
this is translated into altnet terminology. their 'funding lock'
then each commercial bank/service then splits their share with each other, again everyone signs including the central bank. thus they all audit each other at a smart contract level not a blockchain level.

[KingsDen]

IMO, I believe and I can say that CBDC development nowadays is gaining much traction in most territories that adopted cryptocurrency services, and it's noticeable because in my country it was also announced by our Central Bank and I can say that it was in the advanced development stage. but I dont see this as a treat to Bitcoin because it was just a digital version of our fiat currency, but still, it depends on the country that implemented it and I hope they will not follow what China did.     

With the level of adoption or implementation of CBDCs, I mean every country is flowing towards it. This great movement by governments have vindicated cryptocurrencies.
It is now showing that the only or the major problem of governments with cryptocurrencies is that they cannot control and manipulate it as they do to fiat.
If government can control crypto, I don't think they would fight it in any way or for any arbitrary reasons of crime or energy consumption.

[CaVO32]

IMO, I believe and I can say that CBDC development nowadays is gaining much traction in most territories that adopted cryptocurrency services, and it's noticeable because in my country it was also announced by our Central Bank and I can say that it was in the advanced development stage. but I dont see this as a treat to Bitcoin because it was just a digital version of our fiat currency, but still, it depends on the country that implemented it and I hope they will not follow what China did.     

With the level of adoption or implementation of CBDCs, I mean every country is flowing towards it. This great movement by governments have vindicated cryptocurrencies.
It is now showing that the only or the major problem of governments with cryptocurrencies is that they cannot control and manipulate it as they do to fiat.
If government can control crypto, I don't think they would fight it in any way or for any arbitrary reasons of crime or energy consumption.

This is also owed to the pandemic era that we experienced and is still experiencing. During this challenging period, people are looking for ways on how to use their funds digitally, without the use of physical cash. And this time, crypto market also become popular as it shows a very viable option for digital payment. And now, creation of their own CBDC will be a very good way to have their digital fiat instead of using the physical local fiat. At the same time, the government has still full control of their circulation.

[Wind_FURY]

Surprisingly enough the Chinese altcoin (digital yuan) seems to be doing fine as they reported a little less than $10 billion worth of transactions recorded on their chain (if we can call it a chain!). There are also at least 2 new ones coming out in the coming months.

Suddenly it seems like the central banks jumped on board of the Bitcoin train but only took the blockchain technology and ran away.

I personally don't care how many of them are created as long as they don't try to ban bitcoin or restrict its adoption in any way (like closing bank accounts of those who dump fiat for bitcoin).

There may even be some silver lining that these CBDCs could replace the stable-coins in the market in the near future and we end up even seeing Atomic Swap capabilities added where you could easily swap one CBDC for another or for bitcoin without the risk of centralized stablecoins (issued by shady companies). That would definitely simplify things for traders while significantly reducing the risks they take.

To be frank with you, that's a bad take in my opinion. CBDCs could be programmed to be "censorship-money" with a flick of a switch. It will also be easier for the govenment to ban CBDC wallets from sending deposits to exchanges, unlike cash which you can use in LocalBitcoins, or in person.

What the government, and the banks did to the truckers bank accounts in Canada? It can be done a lot simpler/more efficiently with CBDC. With CBDC, the government can control which users' wallets can transact where, and control which merchants' wallets can accept payments from which wallets. They will not do it right away at implementation though. They will market it as "a faster, cheaper and more efficient way of payment" first.

[pooya87]

To be frank with you, that's a bad take in my opinion. CBDCs could be programmed to be "censorship-money" with a flick of a switch. It will also be easier for the govenment to ban CBDC wallets from sending deposits to exchanges, unlike cash which you can use in LocalBitcoins, or in person.

What the government, and the banks did to the truckers bank accounts in Canada? It can be done a lot simpler/more efficiently with CBDC. With CBDC, the government can control which users' wallets can transact where, and control which merchants' wallets can accept payments from which wallets. They will not do it right away at implementation though. They will market it as "a faster, cheaper and more efficient way of payment" first.

No arguments there but the assumption was about CBDCs that were created and controlled by regimes that aren't considered dictatorships like Canada's or China's. And also another assumption was that cryptocurrencies would be regulated like it is in many parts of the world. Like if Japan created their own CBDC and they already consider bitcoin a currency and have no problem with it being traded.

[Wind_FURY]

To be frank with you, that's a bad take in my opinion. CBDCs could be programmed to be "censorship-money" with a flick of a switch. It will also be easier for the govenment to ban CBDC wallets from sending deposits to exchanges, unlike cash which you can use in LocalBitcoins, or in person.

What the government, and the banks did to the truckers bank accounts in Canada? It can be done a lot simpler/more efficiently with CBDC. With CBDC, the government can control which users' wallets can transact where, and control which merchants' wallets can accept payments from which wallets. They will not do it right away at implementation though. They will market it as "a faster, cheaper and more efficient way of payment" first.

No arguments there but the assumption was about CBDCs that were created and controlled by regimes that aren't considered dictatorships like Canada's or China's. And also another assumption was that cryptocurrencies would be regulated like it is in many parts of the world. Like if Japan created their own CBDC and they already consider bitcoin a currency and have no problem with it being traded.

Given the benefit of the doubt, and those assumptions? No arguments there too, it would obviously be the most perfect world for Bitcoiners if the cabal gave us back all finacial freedom through CBDC. It would make Bitcoin more valuable in another sense. The sense that many of us would like.

[South Park]

They are trying to take the charge of the digital currency. And this CBDCs are part of the same idea. I don't think that it'll work out, it might for a while but in the long run, people are going to go decentralized currencies, as they give them full control on their money and somewhat anonymity

As long as people do not get why fiat currencies and CBDCs are not good then we are going to continue to see those two currencies to thrive, however I think we are getting close to the limits of what the fiat system can resist, and when people are finally hit in the face with the reality of the failed fiat system that is when they will begin to ask questions about CBDCs and they will discover that it is just another form of fiat with even worse characteristics, and that is when a massive movement towards decentralized cryptocurrencies could occur.

[maria1110]

Yes, we're entering the era of CBDCs.
Blockchain is the future, there's no doubt about that. Governments are catching the wave also. Plus, they don't need to print money from then on, just need IT infrastructure, which is environmental friendly.

[Marvelman]

CBDC is essentially electronic cash. Like traditional fiat currencies. Central banks are increasingly concerned about losing control of money supply and payment systems, as cryptocurrencies are becoming more prevalent in payment transactions. Since CBDCs are issued by a central bank, they can achieve the benefits of central bank issued currency without the problems of the unregulated decentralized currency.

The IMF reports that almost 100 countries are analyzing the possibility of introducing central bank digital currency (CBDC), and some of these countries have already begun the implementation process. So, yes, we may be entering an era where these digital currencies will become more common. But I don't believe they will replace national currencies anytime soon. In fact, most likely, they will co-exist with national currencies for the foreseeable future, complementing them rather than replacing them.