Buying Bitcoin CBDC

[ncentrepreneur.investor]

I had several questions but can only remember one at the moment. When the government issues CBDC’s, how would you purchase BTC privately being that the CBDC’s will let them survail every transaction if they wish. Seems like a silly question being they can do the same through your bank but……

[jackg]

P2P transfers will still likely be quite private (the issuer of the CBDC might know you two are sending funds to each other but it might be harder to work out why - even if the trader did a lot of trades they might have personal uses for that account too).

With exchanges, unless an exchange is awarded one account per person (which could and might happen) it may be possible for the CBDC to track inflows and outflows and work out exactly who you are (some simple things like treating exchanges like mixers and waiting a random amount of time that's a few days and sending an amount close to what's common for that exchange will greatly improve the chances of your transaction remaining private).

[rat03gopoh]

I think it's like a bank transfer works but it's actually more privacy if in practice the user doesn't need any account like cash.
Moreover, I believe local banks are actually more flexible in controlling the flow of funds individually and in small amounts because it is clear that they with many officers always keep an eye on transaction records.

[Don Pedro Dinero]

The OP seems to have some confusion here. It's like asking how to do cash transactions, since electronic transactions are recorded and payroll is paid to you by the bank.

CBDCs are going to be implemented gradually, and I doubt very much that they will eliminate the use of cash and other electronic transactions. You will still be able to acquire bitcoin P2P or on decentralised exchanges.

[xzy887]

When the government issues CBDC’s, how would you purchase BTC privately being that the CBDC’s will let them survail every transaction if they wish.

I think you can use p2p to buy bitcoins. Bitcoin transaction through P2P does not require any 3rd party. Directly you can do person to person transactions. And it is more confidential. And if you buy bitcoins through a bank, they always monitor your transactions. So I prefer to do transactions in P2P instead of banks.

[pooya87]

CBDC is not going to replace the existing fiat payment systems and you can continue using them to buy bitcoin. Even with CBDC you are still making a payment where the purpose is not defined, it could be for buying groceries or for buying bitcoin.
And as always you can always earn bitcoin since it is a currency after all.

[Davidvictorson]

No, it is not a question is silly. In my country, the government already rolled out its own digital currency/CBDC called e-naira. I do not own any of it. And it is not mandatory to use it for purchase of items. On the other hand, people still buy Bitcoin via P2P as despite the ban on cryptocurrency transactions last year by the government.  I have yet to come across a CBDC owner. So yeah the CBDC and buying bitcoin are two parallels.

[bittraffic]

No, it is not a question is silly. In my country, the government already rolled out its own digital currency/CBDC called e-naira. I do not own any of it. And it is not mandatory to use it for purchase of items. On the other hand, people still buy Bitcoin via P2P as despite the ban on cryptocurrency transactions last year by the government.  I have yet to come across a CBDC owner. So yeah the CBDC and buying bitcoin are two parallels.

Why did you not own a CBDC wallet? I bet they will allow buying BTC but of course not privately. Since users can deposit e-naira to the p2p platform, I guess that's how they also monitor for now the users buying BTC.

It's surprising that Nigeria has CBDC but most countries today have none.  The bank bills are still being used but they may gradually illuminate certain bills in circulation.

[Agbe]

I had several questions but can only remember one at the moment. When the government issues CBDC’s, how would you purchase BTC privately being that the CBDC’s will let them survail every transaction if they wish. Seems like a silly question being they can do the same through your bank but……

I don't think the government would know if you are using it to buy bitcoin because, let show some examples to understand the transaction process. You are an American and you have dollar as cbdc and you are buying bitcoin, you send the cbdc (dollar) to the person that has bitcoin and person in return send you bitcoin that equivalent to the cbdc dollar amount. Therefore, with this transaction, the central authorities would only know that you make a transfer to another cbdc wallet or bank but not in bitcoin wallet. It will be very difficult for them to trace to bitcoin wallet since it was not directly to the bitcoin wallet. Inside the cbdc wallet there is no bitcoin so how can they know? The person will send it from another wallet that contain bitcoin.

[ncentrepreneur.investor]

CBDC is not going to replace the existing fiat payment systems and you can continue using them to buy bitcoin. Even with CBDC you are still making a payment where the purpose is not defined, it could be for buying groceries or for buying bitcoin.
And as always you can always earn bitcoin since it is a currency after all.

That makes sense that they wouldn’t replace the current fiat system entirely at first. It doesn’t make sense why you would need it in the first place.

[ncentrepreneur.investor]

No, it is not a question is silly. In my country, the government already rolled out its own digital currency/CBDC called e-naira. I do not own any of it. And it is not mandatory to use it for purchase of items. On the other hand, people still buy Bitcoin via P2P as despite the ban on cryptocurrency transactions last year by the government.  I have yet to come across a CBDC owner. So yeah the CBDC and buying bitcoin are two parallels.

Sounds good. I will use dexes and purchase in inconsistent amounts. I would not use it on exchanges. Thanks.

[Dunamisx]

When the government issues CBDC’s, how would you purchase BTC privately being that the CBDC’s will let them survail every transaction if they wish

You need to understand that CBDC is not cryptocurrency while bitcoin is, there's no way you can remain being private with CBDC because it's just a digital version of fiat currency, but bitcoin can give you the privacy you've wanted using p2p network which it is meant for and no government can be able to track you down considering that you did not make use not a centralized exchange.

Seems like a silly question being they can do the same through your bank but

Using the bank and CBDC are just thesame thing while bitcoin network is an entire different thing, if you're privacy conscious, get used to a decentralized exchange with bitcoin or run your full node.

[Apocollapse]

You need to understand that CBDC is not cryptocurrency while bitcoin is, there's no way you can remain being private with CBDC because it's just a digital version of fiat currency, but bitcoin can give you the privacy you've wanted using p2p network which it is meant for and no government can be able to track you down considering that you did not make use not a centralized exchange.

CBDC is similar with cryptocurrency, it's just centralized and recorded in private ledger. Using P2P aren't actually mean you have completely 100% privacy, it depends on your wallet and the server you access. If you didn't own your own node, there's a chance someone can still track your IP address.

IMO when I hear about "cryptocurrency" word, I refer it to centralized shitcoins and that's almost same with CBDC.

[Franctoshi]

I don't think the government would know if you are using it to buy bitcoin because, let show some examples to understand the transaction process. You are an American and you have dollar as cbdc and you are buying bitcoin, you send the cbdc (dollar) to the person that has bitcoin and person in return send you bitcoin that equivalent to the cbdc dollar amount. Therefore, with this transaction, the central authorities would only know that you make a transfer to another cbdc wallet or bank but not in bitcoin wallet. It will be very difficult for them to trace to bitcoin wallet since it was not directly to the bitcoin wallet. Inside the cbdc wallet there is no bitcoin so how can they know? The person will send it from another wallet that contain bitcoin.

Let me come in here to answer the question, this your explanation goes in line with someone who is buying Bitcoin via P2P exchange, whereas for someone using his debit/credit cards to purchase Bitcoin for instance Binance or any other means of Buying Bitcoin using your cards, it could be possible for the government to track the transaction using your bank (CBDC'S) because the ATM card being used for such transaction is linked to the CBDC'S Bank Account and hence they will be able to know where you spent your money.

[Anonylz]

What government really have too many free time to track your small transactions?
Except you are buying a huge volume of btc directly from the exchange. And why would you buy btc with cbdc when you can always do that through fiat.
Cbdc is not a thing yet and even if it eventually does it won't be shove down your throat,  I believe you will be given an option, so it is up to you to decide what to buy btc with.

[KennyR]

With CBDC government's get the direct control over the funds of people. In all means people find loopholes to make things work against the purpose for which something is being innovated. On such a stance there'll be ways through Which buying Bitcoin can be made privately.

When bitcoin usage is legalized and fair taxation is done upon the usage of cryptocurrency, what is the need of having it privately. Right now majority of the countries haven't announced the status of cryptocurrency acceptance as well as the taxation over cryptocurrency were very high.

[livingfree]

Too many ways and CBDCs is going to be just one of them.

But needless of that, don't think that CBDCs are already that popular and powerful when it's still on its infancy and haven't started yet.

Anyway, let's see from there if it's already there because no matter what comes. There will bestill  tons of ways to buy bitcoin privately if that's what you want to.

[dark1234]

Central Bank Digital Currency (CBDC) or digital currency issued by the central bank will not affect the purchase of bitcoin because CBDC is like a currency like fiat money, the value of CBDC will be based on or equal to physical money issued by the central bank. Likewise with the supply or the amount of money in circulation. SO we can buy bitcoin as usual and don't need to be afraid of transaction data, and we can't avoid breaking up with the bank because every crypto asset when we want to spend it we have to convert it to FIAT first, except for countries that have legalized crypto transactions

[coolcoinz]

CBDCs are going to be launched as an alternative option. I don't see how they'd force everyone to stop using cash. It's possible there will be countries that say "you can't do this from now on" like China or Russia like to do, but in most countries this isn't how things are done or you'll get protests and the party that tries it won't get elected for another term.
All they can do is put CBDCs out there and advertise them to make more and more people choose this type of payment over cash (first) and then traditional bank transfers.

[franky1]

I had several questions but can only remember one at the moment. When the government issues CBDC’s, how would you purchase BTC privately being that the CBDC’s will let them survail every transaction if they wish. Seems like a silly question being they can do the same through your bank but……

CBDC have the same things as todays digital fiat

if you take off the tin foil hat and do research.. you will realise many many things

government employees do not watch, monitor or surveill every transaction both in current digital fiat, and in the draft/trialing CBDC

what occurs is governments create money. and then ration it out into commercial banks. asking commercial banks to monitor their customers and only report suspicious activity to government agencies

with the draft/trialing CBDC their main templates are a 3 level /versions of service.
if your only moving minimal amounts .. call it monthly wage amounts you get the low level wallet. that does not ask for KYC but does limit how much funds can be transfered in-out
above this threshold is another service people have to upgrade to to get more relaxed limits. if they supply basic KYC. where by those commercial banks then do log names and transfers. but only report basic info to authorities of suspicious transactions and only supply full trade/transfer history if the government agency hands the commercial bank(s) a court order requesting full customer info
then if you are a whale/high roller/wealthy. then you need to go through full KYC

the reason to pass info to government is similar to how all fiats have worked for years.

the only big fidderence between cbdc and fiat is that in a CBDC the user has to save their keys to authorise payments which is more secure than a debit card pin number, where instead of having to hand a retailer all your debit card details for them to 'pull' money out of your 'account' you sign/authorise to 'push' an allotment of your holdings to the retailer

the surveillance and stuff is still the same as fiat now. (once you take the tin foil hat off and realise how fiat works)
and yes even in china their way of banking is similar to that of UK/US. so dont learn how money works from fox news
....