CBDCs really worth it?

[DooMAD]

Worth it for who?

For us, probably not so much.

But for any government who want a perfect spyglass and tool to intercept funds?  Absolutely.

But the government will do that right at the start. They will be "good boys", bringing this new digital currency to us, providing us with a more convenient, and efficient way of transacting with each other. Many people will be bullish about CBDC technology, and every disinforming troll in the forum would start encouraging us to HODL our savings in CBDC. That will be a laughable mistake.

It's a moment we need to capitalise on.  This is when we need to raise awareness to the public about what their choices really are. 

CBDCs hand unprecedented control to Central Banks and Governments.  At any time and for any reason, they could reverse, block or even confiscate the money from any fiat transaction.  Cash will undoubtedly be phased out, so with the exception of crypto, there won't be any other alternatives.  If authorities suddenly decide they don't want people buying a particular product or dealing with a particular company, service or even charitable organisation, the money could be seized.  People need to understand the dangers. 

But so far, it feels like we can't even convince many of the people here on this forum that this isn't in their best interests.  I see so many deluded fools thinking it's going to be like a better version of a stablecoin, endorsed by those in power.  When in all likelihood, not only would it be the final nail in the coffin for "The War on Cash", it could also be the opening salvo to start off "The War on Bitcoin". 

[DanWalker]

Why creating CBDCs, it is not necessary in my opinion.

Yes. There is no need to such currencies.
Governments believe that bitcoin is a threat to the control they have over people's money and think that with introducing such a digital currency can decrease that threat. That's the only reason they think of creating such a currency.
After launching their CBDC, some governments may say that "why do you want bitcoin? Our CBDC is better than that and bitcoin is illegal".
They don't really know how bitcoin works and think they can prevent people from using bitcoin is this way.

This is what I'm thinking too, a lot of people have heard about bitcoin once in their life but they still haven't dared to use or invest in bitcoin because most of them only hear negative news about bitcoin, bitcoin is associated with a scam, bitcoin will disappear or bitcoin is virtual money and has no value. Once the CBDC comes out, the government will find a way to compare their bitcoin with the CBDC and they will praise the CBDC and declare bitcoin an illegal currency. Or another reason maybe they create CBDC to replace stablecoin because they don't want the money printer to fall into the hands of someone else.

[Reid]

We all know that stablecoins are basically pegged with fiat currency in a 1:1 ratio, and we also know that stablecoins are extremely popular when trading cryptocurrencies because their transactions are cheap and fast, and bypass banks. This means that governments want to become competitive with their fiat in the sense of turning it into a CBDC, otherwise they could lose the race with stablecoins and Bitcoin.

Thank you, that's some enlightenment I received there.
I never thought they might be going thru problems like this but it is a fact. Stablecoins may be their best enemy right now before Bitcoin.
I can remember threads discussing about "when banks are going to adopt the blockchain technology". I think this is it. They are trying to adopt it and yet they can see conflict with what they want.
Maybe people are mixed with different emotions of being afraid about the unknown and also the centralization of all. Cash had been the simplest and traceless thing so there is the scary part when compared to CBDC.

[Myleschetty]

To answer this question correctly, let us look at the countries where their government has created their own CBDC which shows there's no huge difference that makes the CBDC worthwhile and the only change I see is the CBDC being easy to use, it limits people carrying fiat currency around while it gives the government more control over people fund and privacy.

[_act_]

But the government will do that right at the start. They will be "good boys", bringing this new digital currency to us, providing us with a more convenient, and efficient way of transacting with each other. Many people will be bullish about CBDC technology, and every disinforming troll in the forum would start encouraging us to HODL our savings in CBDC. That will be a laughable mistake.

It will be a laughable mistake like you said, CBDCs are not cryptocurrencies, they are pegged with fiat, they are fiat. The government just want to fool people in a way people not to invest in cryptocurrencies like bitcoin which can be used as an hedge against inflation.

To answer this question correctly, let us look at the countries where their government has created their own CBDC which shows there's no huge difference that makes the CBDC worthwhile and the only change I see is the CBDC being easy to use, it limits people carrying fiat currency around while it gives the government more control over people fund and privacy.

In my country, CBDC was created but it has no competition with fiat, people did not use it because it is just fiat just like how we are sending fiat to another person online.

[Wind_FURY]

Worth it for who?

For us, probably not so much.

But for any government who want a perfect spyglass and tool to intercept funds?  Absolutely.

But the government will do that right at the start. They will be "good boys", bringing this new digital currency to us, providing us with a more convenient, and efficient way of transacting with each other. Many people will be bullish about CBDC technology, and every disinforming troll in the forum would start encouraging us to HODL our savings in CBDC. That will be a laughable mistake.

It's a moment we need to capitalise on.  This is when we need to raise awareness to the public about what their choices really are. 

There might not be a choice if launched, and I believe it would be the wiser decision to use CBDC and pretend that you're a normie, than refuse to use it and be a target by the government. Plus it might actually be convenient for gas/fuel and coffee. Haha.

But you're right, there must be awareness/understanding, and there must be deception on our part.

CBDCs hand unprecedented control to Central Banks and Governments.  At any time and for any reason, they could reverse, block or even confiscate the money from any fiat transaction.  Cash will undoubtedly be phased out, so with the exception of crypto, there won't be any other alternatives.  If authorities suddenly decide they don't want people buying a particular product or dealing with a particular company, service or even charitable organisation, the money could be seized.  People need to understand the dangers. 

But so far, it feels like we can't even convince many of the people here on this forum that this isn't in their best interests.  I see so many deluded fools thinking it's going to be like a better version of a stablecoin, endorsed by those in power.  When in all likelihood, not only would it be the final nail in the coffin for "The War on Cash", it could also be the opening salvo to start off "The War on Bitcoin". 

If you can't convince them, then just convince them to HODL Bitcoin as a hedge, and not only as a financial hedge, a hedge against censorship, against the people who control the monetary system, and as protection for our sovereignty.

For reference on what is a CBDC, https://digichina.stanford.edu/work/lets-start-with-what-chinas-digital-currency-is-not/

[Abiky]

I don't really see any difference between a digital currency issued by the governments and fiat. There are two big problems with fiat. 1. It's centralized and the governments have full control over people money.  2. It can be printed.
A digital currency issued by a government still have both problems. I am sure they will design the so called digital currency in a way so they can increase the total supply whenever they want.

Not only that but CBDCs enable governments to have a full scope of your daily financial activities. They'll be a great tool for massive surveillance, putting an end to the era of privacy for good. Everything else will be most likely the same way as it is with Fiat right now. The benefits are numerous from eliminating the need to print new bills (paper money) to easily increasing the supply, and more. CBDCs will certainly be a better option than existing stablecoins simply because they'll have the backing of mainstream governments. But CBDCs will never "beat" decentralized cryptocurrencies simply because these are too big to fail. As long as decentralization wins in the long run, nothing else matters. Just my thoughts

[Lucius]

Thank you, that's some enlightenment I received there.

You're welcome, because I think a lot of people live under the misconception that the authorities are most afraid of Bitcoin, even though their focus is pretty much on stablecoins. Because of all that I’ve mentioned before, but also one more important thing - and that’s unlike Bitcoin which has POW and is impossible to counterfeit, stablecoins that should be backed up with something (fiat or something else) are often printed without of any real cover. This opens up a huge space for manipulation, and the authorities are aware of that.
 

I can remember threads discussing about "when banks are going to adopt the blockchain technology". I think this is it. They are trying to adopt it and yet they can see conflict with what they want.

It is true that governments currently have a problem with how to maintain a monopoly in the field of finance, but we should also not forget that they have very strong mechanisms to turn things around. If they want to harm Bitcoin, all they need to do is ban trade and payments in that currency, and it is a well-known fact that most stablecoins can be frozen no matter what wallet they are in.

The only question is how long the EU and the US will play the game "we are not like the Chinese and we will not go in the direction of complete bans", and whether at some point it will be decided that the time has come for the final showdown.

[Captain Corporate]

Depends if one government finally realizes that CBDC is actually an improved version of stablecoins, not the digital version of fiat. If they could handle that, then they could start getting in contact with exchanges and things could escelate from there. Plus if you are not talking about somewhere proper, then we are not going to end up seeing something decent anyway. I am not saying that it won't happen at all, but who's going to buy swiss franc or something? I get that euro, pound could have some power, but even they wouldn't be as big as USD CBDC, that is the only one I am expecting to actually matter.

[Myleschetty]

To answer this question correctly, let us look at the countries where their government has created their own CBDC which shows there's no huge difference that makes the CBDC worthwhile and the only change I see is the CBDC being easy to use, it limits people carrying fiat currency around while it gives the government more control over people fund and privacy.

In my country, CBDC was created but it has no competition with fiat, people did not use it because it is just fiat just like how we are sending fiat to another person online.

This will be the result of the government CBDC because the major reason why CBDC came into the picture is the government's FOMO and there's no way they will achieve some good out of it but if they support cryptocurrency and don't see it as a competition between their national currency it will be a win-win for them.

[Gyfts]

You can put as much faith into CBDC's are would the central banks' fiat currency. That is to say, you should be no faith into CBDC's, perhaps even less than fiat currencies. CBDC's just digitalizes the money supply allowing for even more control than already exists. Modifying the money supply just requires inputting digits into a keypad, and any holders are subject to adherence by arbitrary regulations that the central banks might impose.

[Silberman]

But the government will do that right at the start. They will be "good boys", bringing this new digital currency to us, providing us with a more convenient, and efficient way of transacting with each other. Many people will be bullish about CBDC technology, and every disinforming troll in the forum would start encouraging us to HODL our savings in CBDC. That will be a laughable mistake.

It will be a laughable mistake like you said, CBDCs are not cryptocurrencies, they are pegged with fiat, they are fiat. The government just want to fool people in a way people not to invest in cryptocurrencies like bitcoin which can be used as an hedge against inflation.

That is exactly what they want, governments are realizing that bitcoin and other cryptocurrencies are not going to spontaneously disappear so they are joining the game hoping to deceive as many people as they can, however it is a difficult battle, because those which have decided to not adopt bitcoin do not see the point of getting CBDCs when they can do everything they need with their bank accounts already, while those that adopted bitcoin because they know what is going on will never use CBDCs anyway.

[Oceat]

Why create CBDC though when there's no difference about it in fiat, they just made their physical money into a digital form of payment. This is also a centralized money which the government can easily intercept and do the same as what banks been doing. I'd rather choose Bitcoin over this one where the price could potentially pump in no time than this which I think is like XRP that constantly correcting the price.

[Hydrogen]

CBDC is perceived as being an integral component of a digital cashless society.

A cashless society makes it difficult to tip waiters and strippers. It makes it difficult or impossible for transactions of used goods and services, without the approval of a central bank. Small businesses who can only exist through paying employees cash, may no longer be able to operate under CBDC / cashless society formats.

CBDC and a cashless society could create a world where people have access to fewer opportunities and financial tools.

It is no surprise that CBDC and the concept of a cashless society would be met with widespread disapproval.

Macron worked in the banking industry for many years and may not be the most independent or objective source on CBDC. Macron's public approval rating is also not the best. I think his approval rating is 20%. Which could mean as much as 80% of the population in france oppose CBDC/cashless society.

[Lucius]

Macron worked in the banking industry for many years and may not be the most independent or objective source on CBDC.

If the data on the Wiki is correct, he worked in the banking sector from 2008 to 2012 as an investment banker at Rothschild&Cie Banque. It is true that he spent many more years in the financial sector, but exclusively working for the civil service and as a minister. I don't know what he thinks about CBDC, but I know he supported a French company that makes hardware wallets.

Macron's public approval rating is also not the best. I think his approval rating is 20%. Which could mean as much as 80% of the population in france oppose CBDC/cashless society.

The French presidential election has just ended and Macron won with 58% of the vote, so it's not clear to me why you think he has such low support? At the end who will ask people what they want and approve of? When the digital euro is ready, the first countries to adopt it will be France and Germany anyway.

[DooMAD]

Depends if one government finally realizes that CBDC is actually an improved version of stablecoins, not the digital version of fiat.

They both have different trade-offs, but I personally wouldn't argue that either is an improvement on physical cash.

If they could handle that, then they could start getting in contact with exchanges and things could escelate from there.

This is assuming your government will want you to be able to send funds to exchanges.  I have a suspicion many governments will want the opposite of that.  CBDCs could just as easily be implemented as a tool which prevents you sending or receiving funds from services that handle cryptocurrencies.

[Dunamisx]

Why create CBDC though when there's no difference about it in fiat, they just made their physical money into a digital form of payment. This is also a centralized money which the government can easily intercept and do the same as what banks been doing. I'd rather choose Bitcoin over this one where the price could potentially pump in no time than this which I think is like XRP that constantly correcting the price.

Correct! This is a good idea and i wish many could understand that bitcoin does not go with inflation at any cost, inflation only have negative effect on fiat in which the government and bank's system of running the economy keep failing, CBDC was intended with the aim to divert attention from bitcoin but they forget that what users want is privacy and decentralization and which they can't offer, there is much more better opportunities in dealing with bitcoin than getting hooked by inflation using fiat currency.

[lixer]

Countries want to create their own CBDC, some piloted and created theirs already. But the consultation about the creation of digital Euro is on the down side, people and organizations do not support it. I have been thinking like this before, what is important about CBDCs that traditional local currency (fiat) can not be used for? Fiat has electronic wallet, can be used for electronic (online) payment, it has the same value as the fiat of the country that created it, it is even the fiat, it is completely controlled by the central bank and the government, CBDCs are just fiat. Why creating CBDCs, it is not necessary in my opinion.

If people and organizations don't support it then why they still continue creating it? But, those people and organizations can't do much anyway since banks and governments are still powerful compared to them and maybe those countries that already created their own CBDC have a people and organizations that fully supports them.

CBDC is still useful anyway and they see that. yes, it is like a fiat but only works digitally. We know that the world now rely online but this CBDC are only perfect for those who don't know or don't trust cryptos. For us crypto users, we won't use this because the reason why we use cryptos is because of its anonymity and decentralized features.

[worle1bm]

The government think they can compete with the crypto market through this CDBC then they are right because these are same as to centralised shitcoins in the market having no use.But these CDBC will have legal base and everybody can use it similar to Fiat but still the same old concept and will face the problems but it won't hurt the government.

[uchegod-21]

CBDCs are just fiat. Why creating CBDCs, it is not necessary in my opinion.

CBDCs are not fiat, but it has the attributes of a fiat and both are owned by the same government.
Then while fiat is the old form of money, CBDCs are the new form of money.

If you say that because there is fiat, no need for CBDC;
I can say that there are offline forums, what's the need for online forum;
There is books offline, why the need for pdp formats or soft copies.

The world is already digital, with CBDCs, international trade tariffs will not be as high as the fiat. You will only need to pay transaction fees.

So, CBDCs are the new form of fiat and are here to battle with stable coins.