Difference btw CBDC & BTC (Simple and short explanation)

[Bitstar_coin]

Here is a very simple and short difference between BTC and CBDC, and why both are not comparable in any way.




Source @bitcoin_insights

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[bitmover]

It is always good to point out the differences of cdbc and bitcoin.

Cbdc are just fiat. I think there will be very little innovation , and it will be mostly a new payment method.

Let's see how it will be implemented,  but I doubt they are going to be as borderless as bitcoin and other cryptocurrencies. There will be a lot of kyc and similar to create a new wallet and transfer money.

I Awdoubt they will even use blockchain w

[LoyceMobile]

Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!

[bitmover]

Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!

I think they will be even worse than stable coins.

You can use usdt in any dex. You can sent it using basically any blockchain (even bitcoin blockchain until few time ago usdt was very common).
This means that I can send usdt (or any other stable coin) permitionless, borderless  to anyone in the world.  I know they are ahleer to freeze some addresses,  but cbdc might be even worse.

I belive cdbc will ask for kyc when generating a new wallet, for example. I doubt I will be able to send cbdc to people in other countries and convert between currencies for free, without paying taxes and other fees for example.

[coupable]

Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!

I think they will be even worse than stable coins.

You can use usdt in any dex. You can sent it using basically any blockchain (even bitcoin blockchain until few time ago usdt was very common).
This means that I can send usdt (or any other stable coin) permitionless, borderless  to anyone in the world.  I know they are ahleer to freeze some addresses,  but cbdc might be even worse.

I belive cdbc will ask for kyc when generating a new wallet, for example. I doubt I will be able to send cbdc to people in other countries and convert between currencies for free, without paying taxes and other fees for example.

This confirms that it is not a currency by the standards known, whether for traditional or encrypted currencies, but rather it tends to be a payment system rather than an independent currency.
Bitcoin, on the other hand, plays a dual role as an independent currency that combines the traditional characteristics of well-known currencies with the new features of blockchain technology, in addition to being an independent payment system that works according to the mechanisms of the blockchain that provides sufficient guarantees.

[Hydrogen]

Venezuela built their CBDC using existing blockchain technology as a cost saving measure.

It is possible other nations will do the same. Rather than build their own proprietary CBDC systems from the ground up at a ceiling cost of billions. They could opt to fork bitcoin or another token the way bitcoin cash did. With the main difference being state owned and operated miners and nodes.

Updating and modernizing banking industry infrastructure and technology is no trivial task. The last major modernization of the banking industry was accompanied by some of the largest electronic bank heist attempts in history. Some insiders tasked with modernizing banking tried to steal funds, thinking they wouldn't be caught. Some may have even gotten away with it.

There are reasons banks do not update their infrastructure and systems unless they're forced to. That could be one major advantage crypto will retain over banks. The capacity to rapidly deploy and roll out new technologies. While banks with legacy systems could by nature be extremely difficult to modernize and maintain.

[naira]

It's very clear and it shows how much advantage Bitcoin has. The birth of the CBDC remains focused on concerns about the flow of funds beyond the control of banks. Without Bitcoin, CBDCs probably wouldn't be this crazy for every country that insists governments rush to launch their own CBDC. With objects that cannot be combined with each other, we have seen how important it is to maintain Bitcoin ownership assets. Therefore I strongly agree that Bitcoin cannot be compared to CBDC.

[Bitstar_coin]

Venezuela built their CBDC using existing blockchain technology as a cost saving measure.

It is possible other nations will do the same. Rather than build their own proprietary CBDC systems from the ground up at a ceiling cost of billions. They could opt to fork bitcoin or another token the way bitcoin cash did. With the main difference being state owned and operated miners and nodes.

Updating and modernizing banking industry infrastructure and technology is no trivial task. The last major modernization of the banking industry was accompanied by some of the largest electronic bank heist attempts in history. Some insiders tasked with modernizing banking tried to steal funds, thinking they wouldn't be caught. Some may have even gotten away with it.

There are reasons banks do not update their infrastructure and systems unless they're forced to. That could be one major advantage crypto will retain over banks. The capacity to rapidly deploy and roll out new technologies. While banks with legacy systems could by nature be extremely difficult to modernize and maintain.

The world is technologically advancing quickly and for banks to keep up with these advancement they have no choice than to modernize their banking system. Nobody wants to be stuck in the 19th century traditional banking system. They have to keep up with the paste otherwise like you said crypto will have the upper hand.

Since the introduction of cbdc am not sure if there has been actually usage by citizens of countries that has so far introduced it. If most of cbdc are not built on blockchain technology it will encounter the same problem as fiat (as it is centralized and controlled by the government) and especially since they can manipulate the funds just as they do with fiat. So definitely crypto have a better advantage.

[Darker45]

To a certain extent, a CBDC is even the worse form of fiat. I'd rather have hard cash than a CBDC. At least with my cold cash, it's harder to get seized, easily spent, offers a little anonymity, could be spent anywhere and however I want. Hell, I could even roll those bills and snort cocaine without the government knowing I was the one who used it. With a CBDC, all of these convenient features are totally erased.

[Poker Player]

Cbdc are just fiat.

They are much more than fiat, in the worst sense: with fiat you have the possibility to pay in cash, so payments are anonymous, unless you ask for an invoice and give your details. With CBDC all payments will be controlled. With the fiat you can keep it and hide it, with the CBDC they can confiscate it at any time by pressing a button.

There has been talk of some features, such as putting an expiration date on CBDC money to stimulate consumption and other such crazy things.

So they are not just fiat, they are much worse.

[LoyceMobile]

I think they will be even worse than stable coins.

There's one benefit: it takes out the company in the middle. With USDT, you have to trust the company that created it. If they can't cough up the dollars when needed, your USDT is worthless. Just like what happened to UST.
I'm not in crypto to trust people/companies.

I'm forced to trust Central Banks anyway, they can decide to dilute the existing money supply at any time. We're basically at their mercy.
CBDC may remove another middleman: banks!

I belive cdbc will ask for kyc when generating a new wallet, for example. I doubt I will be able to send cbdc to people in other countries and convert between currencies for free, without paying taxes and other fees for example.

Probably. I don't expect Central Banks to act in our interest.
I don't expect they'll have a public ledger. But it wouldn't surprise me if it's accessible by big data for targeted advertising.

putting an expiration date on CBDC money

Great! Let's turn money into coupons.

[DrBeer]

CBDC is a product created for the masses, something like a mixture of cashless fiat and bitcoin. BUT ! Its goal is not "crypto-freedom" at all. This is a very pragmatic, thoughtful product and ideology. After its launch, there will be no paper, no coins. There will be a unique identifier of the citizen and his wallets and transactions. And the RIGHT of the issuer to MANAGE it. And first of all - CONTROL. Something that is not present when using paper money, and partially not in non-cash payments. And here there will be full control, from emmissi to gateways for converting one currency into another, as well as for each transaction, and the ability to slow it down, block it, transfer it to another account. Governments are tired of fiat problems. Yes, and the cost of maintaining the fiat is quite high, whatever one may say... What about the risks? In general, a separate topic for discussion.

[laredo7mm]

To a certain extent, a CBDC is even the worse form of fiat. I'd rather have hard cash than a CBDC. At least with my cold cash, it's harder to get seized, easily spent, offers a little anonymity, could be spent anywhere and however I want. Hell, I could even roll those bills and snort cocaine without the government knowing I was the one who used it. With a CBDC, all of these convenient features are totally erased.

Exactly what I was thinking about. CBDC becoming the primary currency of our economy means the government will have more control over it. They can do anything they want with our money. They can freeze, seize, and control where I can use it. My money will not be my money anymore. That is why a country like China is more interested in CBDC than crypto.

[DrBeer]

To a certain extent, a CBDC is even the worse form of fiat. I'd rather have hard cash than a CBDC. At least with my cold cash, it's harder to get seized, easily spent, offers a little anonymity, could be spent anywhere and however I want. Hell, I could even roll those bills and snort cocaine without the government knowing I was the one who used it. With a CBDC, all of these convenient features are totally erased.

Exactly what I was thinking about. CBDC becoming the primary currency of our economy means the government will have more control over it. They can do anything they want with our money. They can freeze, seize, and control where I can use it. My money will not be my money anymore. That is why a country like China is more interested in CBDC than crypto.

And you hoped that such a technology is being launched for the sake of "brotherhood with bitcoin"? See above - only for full control and management of cash flows. The state cannot, in the modern world, not be centralized and not control the flow of money! It's a solution to control everything from taxes to sponsoring bad people!"

[Doan9269]

The difference is clear enough to see and believe, CBDC is a digital fiats currency that is centralized and has no difference in fiat note other than been digital while bitcoin is a digital currency as well but totally decentralized and is umder the categories of cryptocurrencie while another vital difference is that bitcoin in cryptocurrency is a good store of value asset other than fiat currency which doesn't appreciate in due time

[xSkylarx]

CBDC and BTC are very different to each other. It's like comparing fiat to gold. CBDC's won't change value and will just decrease because of inflation as the years will pass. While BTC is the opposite because of its scarce supply and continuous increase of demand. CBDC's purpose is only for digital payments while BTC can be considered as an investment.

[browsiek]

The concept of CBDC digital money is almost similar to Crypto or Cryptocurrency.

The difference is, the price of CBDC is pegged from the country's currency because CBDC is a currency issued or formed by the Central Bank of a country which is held by the government. Meanwhile, cryptocurrencies have several characters and have risks of harm, such as the Underground Economy if the holder or owner does not record it as an asset he owns, and crypto currency is also not issued by the competent authority and there is no agreement between the and other parties

[Bitstar_coin]

The concept of CBDC digital money is almost similar to Crypto or Cryptocurrency.

The difference is, the price of CBDC is pegged from the country's currency because CBDC is a currency issued or formed by the Central Bank of a country which is held by the government. Meanwhile, cryptocurrencies have several characters and have risks of harm, such as the Underground Economy if the holder or owner does not record it as an asset he owns, and crypto currency is also not issued by the competent authority and there is no agreement between the and other parties

I don't see it similar to crypto besides the above image already shows a very clear difference, cbdc was created by government to further control its citizens. It is a digital version of fiat which is completely the opposite of what crypto represent. The comparison is not just with the entire crypto but particularly with btc which does not pose all this risk you have mentioned.
By competent authority if you mean the government, then no, which is a good thing and one of the major difference over cbdc.

[NeuroticFish]

Here is a very simple and short difference between BTC and CBDC, and why both are not comparable in any way.




Source @bitcoin_insights

There's nothing simple in that image. And it's misleading at best, since it can make some think that there are worthy similarities between Bitcoin and CBDCs (and they're not really).

Simple difference: CBDCs are centralized bank money, like your VISA. Bitcoin is.. decentralized and free. (pay attention, I didn't say it's for free).
If you need a lot of lines of text then you've missed the "simple" part.

PS. The image is poorly made and pretty much unreadable; not that it would matter much.

[SirLancelot]

The image is kinda blurred and hard to see each of their descriptions but it's possible to read the capitalized words. Still thanks for this, this was mostly helpful for the newbies that didn't know yet the difference between the two but for the majority here, common sense is only needed. One is being operated by the banks or governments while the other is the complete opposite.

In simple terms, btc is decentralized and cbdc's are a centralized type of currencies/cryptos, I included the word crypto since I heard that they are also running in the blockchain. What we are doing here is we comparing both of them but it's fine I guess? Since both have some similarities.