CBDCs Cannot Save Weak Currencies

[Oluwa-btc]

What ever that's controllable and programmed by the government and banks are nothing but complete shitty, how many threads need be created before this finally gets to full conclusion ? They're same scheme and ideas of the fiat system, nothing much added to it really.
Fvck the Fed's and use Bitcoin. In Nigeria, redesigning the paper fiat would make it a bit scares, I don't know if would see a high use of Bitcoin or E-Naira.

The means could also be a means to monitor the fund's used by the political parties during the next election if I'm guessing right.

[lumbanrang]

A CBDC will not and cannot save weak currencies, it will only change how fiat transactions will be conducted and regulated, and that's about it. That's why I don't really care about things like CBDC, because this is not a new innovation.

[tiCeR]

The only advantage of CBDC is that it reduces the fees for printing money and thus saves a lot of money. Also, if it is managed efficiently, it will increase transparency and reduce corruption, but we all know that this will not happen.
Therefore, if the system is corrupt, these currencies will give the countries great control over the people's money and force them to take whatever taxes they want.

There are a ton of other potential issues that come to my mind: negative interest rates, which typically get sold as a positive thing stimulating the economy, could not be circumvented anymore by people who choose cash over other investments. With the application of negative interest rates people would feel forced to switch into other assets or accelerate consumption. That could be played out in a very tricky way. I would bet that banks are sitting on exactly those assets that are then the escape for people trying to avoid negative interest rates, thereby driving up those other assets' prices. I'd say it's similar to quantitative easing, but this time it is not the banks pumping money into the markets, but the people who are kind of left without a choice.
There is lots of stuff you can do with CBDCs. Among the range of possibilities is certainly also the ability to create a perfect, fully transparent profile about people, which is not unlikely to end up in exacerbating social control.

[DrBeer]

CBDC is just a new historical turn, the transition of money to another qualitative level. If you remember, at the beginning of civilization, existing money was provided with precious metal in it, then banknotes appeared, then a mix of fiat money and non-cash payments (now we are here). The next step is CBDC. This was driven by cryptocurrencies and blockchain technology. The essence of CBDC is total control over the movement of money and total state control over the money itself. Yes, and also the security of the financial system of the state! Because for example, CBDC solves the problem of counterfeiting, "financial attacks on the state", etc. actions.
Nothing else!

[AmoreJaz]

CBDC is just a new historical turn, the transition of money to another qualitative level. If you remember, at the beginning of civilization, existing money was provided with precious metal in it, then banknotes appeared, then a mix of fiat money and non-cash payments (now we are here). The next step is CBDC. This was driven by cryptocurrencies and blockchain technology. The essence of CBDC is total control over the movement of money and total state control over the money itself. Yes, and also the security of the financial system of the state! Because for example, CBDC solves the problem of counterfeiting, "financial attacks on the state", etc. actions.
Nothing else!

we are still in the early adoption of CBDCs. so right now the governments don't know yet the full potential or impact of its usage. but definitely, the tracking of CBDC is much easier than the usual physical fiat money. transparency is one of the things that this digital fiat can offer. but let's see how people will use this to their own advantage.

[Apocollapse]

You call fiat is scam? why you're still use fiat to spend food and pay bills right now? if it's scam don't use it, except you're a dumb person.

Actually fiat isn't scam, but you shouldn't hold most of your funds in fiat since the value will become worthless in the future. This is why money management and financial is really important to understand why investment is really important.

CBDC is digital fiat that the value is stick with fiat 1:1, there's no way to save inflated currencies through digital since the problem is the currency.

[lixer]

CBDC is just a new historical turn, the transition of money to another qualitative level. If you remember, at the beginning of civilization, existing money was provided with precious metal in it, then banknotes appeared, then a mix of fiat money and non-cash payments (now we are here). The next step is CBDC. This was driven by cryptocurrencies and blockchain technology. The essence of CBDC is total control over the movement of money and total state control over the money itself. Yes, and also the security of the financial system of the state! Because for example, CBDC solves the problem of counterfeiting, "financial attacks on the state", etc. actions.
Nothing else!

we are still in the early adoption of CBDCs. so right now the governments don't know yet the full potential or impact of its usage. but definitely, the tracking of CBDC is much easier than the usual physical fiat money. transparency is one of the things that this digital fiat can offer. but let's see how people will use this to their own advantage.

Yes. CBDC's are still new and a lot of countries didn't issue their own CBDC's yet. I agree on what @DrBeer said. CBDC's are just a fiat in another form. They are not a crypto or a new technology so government shouldn't expect a lot from them. If what they see in local fiat then the same thing they can also expect in CBDC's but the impact of it is going to be positive for those who are supporting fiats because this enabled them to have another option other than cards and other online currencies.

It makes their lives more easier. I don't think governments created CBDC's to save their fiat currencies but even if that is their motive then it won't work.

[coupable]

The events of a digital currency with the same counterpart cannot represent a solution to any of the problems faced by the original currency. It is assumed that the digitization of the currency was for the purpose of facilitating its use, but it should not turn into a tool to pump more digital liquidity without having an exchange from the main currency.
Currently there is widespread use of USDT in countries whose currency is suffering from inflation. However, this does not assume that all tokens will be issued with a fixed dollar reserve.

[ChiNgadOr]

Since the normal fiat do not have good value then there is no way CBDC can make much impressive effort and value because this is in the online version of a currency which is replicated digitally.
 I have seen make countries' CBDC that are not making any move and it was not becoming that useful to people. Good countries with strong currencies will make good use of CBDC that will serve as an alternative move for people.

[Gyfts]

You call fiat is scam? why you're still use fiat to spend food and pay bills right now? if it's scam don't use it, except you're a dumb person.

Actually fiat isn't scam, but you shouldn't hold most of your funds in fiat since the value will become worthless in the future. This is why money management and financial is really important to understand why investment is really important.

CBDC is digital fiat that the value is stick with fiat 1:1, there's no way to save inflated currencies through digital since the problem is the currency.

It isn't a scam, per se. It's a perpetuation of a broken system that forces citizens to rely on the government for purchasing power. There wasn't really a better system pre-crypto, I'm not arguing that. I'm suggesting that a currency that is controlled by an entity which promises its participants that purchasing power will go down every year by inherent function of the system is all but a fraud.

If the average working man, lower income, has no alternative to its government's currency and the predations that come along with fiat, would you fault him for it? They don't have a choice. This is not even beginning to discuss countries that have limited the crypto industry by excessive taxes and regulation.

I suspect CBDC's will plague the financial industry like a malignant tumor, and there isn't a guarantee that it would be a 1:1 value pegged to whatever fiat currency the issuer chooses. It's arbitrary.

[Majestic-milf]

People usually look to alternative means whenever the available is failing that's why it's called a plan b. Asides from the government trying to at least have a control over its citizens, CBDCs were created to support a failing fiat.
 Like the op mentioned, CBDCs were believed to be the key to solving a country's fiat problems, but as it is CBDCs are somehow aiding in financial crime, fraud and illegal activity.

[Tony116]

People usually look to alternative means whenever the available is failing that's why it's called a plan b. Asides from the government trying to at least have a control over its citizens, CBDCs were created to support a failing fiat.
 Like the op mentioned, CBDCs were believed to be the key to solving a country's fiat problems, but as it is CBDCs are somehow aiding in financial crime, fraud and illegal activity.

CBDC is just a digital version of fiat. As I understand it, to keep up with the digital age, governments create CBDCs to provide a fiat alternative that offers convenience in use, they don't claim it's the solution to save fiat. CBDCs are fiat, nothing more and nothing less, so the failure of a certain country's CBDC is because their currency has also failed before.

I have not found any evidence that CBDCs are supporting financial crimes, scams and illegal activities. Your claims are baseless, no different than governments are blaming bitcoin.

[Die_empty]

CBDCs are no more than fiat currency scams on steroids. As long as the current fiat system is not viable, then CBDCs are even less viable as they enable the government to engage in even more currency debasement. CBDCs cannot save weak currencies like the Ghanian Cedis, the Zimbabwean Dollar, the Venezuelan bolivar, the Argentine peso, or the Lebanese lira. The eNaira, Africa’s first central bank digital currency (CBDC) is a total failure and did not save the Nigerian fiat currency. Infact, there are a lot of bad things that come with CBDCs and countries should avoid it. What do you think. Do you have a dissenting opinion?
https://financialunderground.com/articles/another-big-cbdc-flop/

The only benefit I can figure out from the rolling out CBDCs by most Central Banks is that it saves them the cost of printing money. Apart from this, it has no economic benefit to the country. The eNaira have not been widely used by Nigerians because citizens don't have confidence in the naira. The are scared that with the rate the naira losses it value, they might end up losing all their funds.

Regardless of the fall in price of bitcoin, Nigerians are alternatively embracing bitcoin, using it as a hedge against inflation. This is because they believe that bitcoin would recover from this bearish market but they don't believe that the naira would get stronger to recover all its lost worth.
I also believe that most central banks are using CBDCs to discourage its citizens to buy or use bitcoin and others. But this strategy has also failed because the benefits of bitcoin outweighs the lies they keep telling against it.     

[crwth]

I think if the ones that would establish the CBDC’s are the same ones who made the weak currency weak, then you could probably expect the same thing. If the people who are in charge of it are the ones who are trying to find a way to save the currency and made that way, that’s definitely going to have the same fate.

Rolling things out like that, just because it’s a new technology and not understanding how the actual economy works would be the fundamental problem that they need to solve. I just hope that can save it, but I doubt it.

[cabron]

CBDCs are no more than fiat currency scams on steroids. As long as the current fiat system is not viable, then CBDCs are even less viable as they enable the government to engage in even more currency debasement. CBDCs cannot save weak currencies like the Ghanian Cedis, the Zimbabwean Dollar, the Venezuelan bolivar, the Argentine peso, or the Lebanese lira. The eNaira, Africa’s first central bank digital currency (CBDC) is a total failure and did not save the Nigerian fiat currency. Infact, there are a lot of bad things that come with CBDCs and countries should avoid it. What do you think. Do you have a dissenting opinion?
https://financialunderground.com/articles/another-big-cbdc-flop/

On the one hand, CBDC is a basic element of a digital concentration camp, and on the other hand, it is a very effective tool for managing the economy. 

CBDC (in theory) allows you to fully control all income and expenses, as well as plan production and consumption.  Along with the digital marking of goods, this will ensure total control and planning of all financial and economic operations in the country. 

This will allow to produce products with minimal costs, and therefore increase the competitiveness of the country that has implemented the CBDC system.

In theory.  It's more like them having full control of someone's money. The failure of eNaira may just be because the Nigerians have the option and one of the options is BTC.

If the people have the option compared to the CBDC, they will be taking that option unless the CBDC really offers something worth like airdropping thousands of the money so it can be adopted faster. The problem is if the airdrop was all spent and people still abandoning CBDC, they can't just airdrop all the time.

[franky1]

for those that cant read lengths of text or do research.. here's the summary..
its B not A


to find out what i am on about try to read

alot of people are screaming with tears and tin foil that CBDC is evil. devils hand stuff.. but its obvious those people have never read a CBDC whitepapers or examined one close up. they just found a blog piece of some other non researcher that calls it bad, just to back up the screamers bias

..

many many CBDC are not set up the way cry babies think. yes there are pitfuls. but its not what you think

for one. although a central bank "pre-mines"(to compare buzzwords) trillions. they then distribute that to several commercial banks. and its the commercial banks that do the day to day work of keeping the bank statements(tx history) and also a separate database for KYC.

in many CBDC the commercial banks offer 3 tiers of accounts(wallets)
if you're on a low income needing only to ever receive or spend under X per month. meaning say $1k a month and 'save' upto $12k a year
meaning low untaxable threshold spend accounts.. there would be no KYC

then for middle income there is basic kyc
and then for large businesses/rich there is full KYC

much like how VisaCard offers:
a no kyc virtual/debit gift card program
a basic account debit/credit card with basic kyc
and a platinum/black card for the rich with full due diligence/kyc

obviously if you want to receive more than $1k in any one go you need to upgrade to the middle tier. and if rich upgrade to top tier. but you can still have a spare bottom tier account(wallet) for just play money spend amounts

there is also fundamental rules built into these systems like fungibility where by it requires court orders for authorities to gain the KYC data from the COMMERCIAL BANKS and also to freeze accounts

yep even china's CBDC functions like US fiat today
yep even chinas e-yuan is not an (A) scenario. its (b)

[KingsDen]

CBDCs are no more than fiat currency scams on steroids. As long as the current fiat system is not viable, then CBDCs are even less viable as they enable the government to engage in even more currency debasement. CBDCs cannot save weak currencies like the Ghanian Cedis, the Zimbabwean Dollar, the Venezuelan bolivar, the Argentine peso, or the Lebanese lira. The eNaira, Africa’s first central bank digital currency (CBDC) is a total failure and did not save the Nigerian fiat currency. Infact, there are a lot of bad things that come with CBDCs and countries should avoid it. What do you think. Do you have a dissenting opinion?
https://financialunderground.com/articles/another-big-cbdc-flop/

The CBDC is not different from fiat currency. The difference is one is an offline or paper version while the other is a digital version. If the offline version is weak, there is nothing the online version will do to redeem the weakness. This is to say that the reason that CBDCs were created is not to combat the weakness of fiat, rather it is to promote government agenda of cashless economy. Also some countries joined the bandwagon because they don't know how the blockchain technology will turn out to be in the future so that their country will not be left behind 

[South Park]

I think if the ones that would establish the CBDC’s are the same ones who made the weak currency weak, then you could probably expect the same thing. If the people who are in charge of it are the ones who are trying to find a way to save the currency and made that way, that’s definitely going to have the same fate.

Rolling things out like that, just because it’s a new technology and not understanding how the actual economy works would be the fundamental problem that they need to solve. I just hope that can save it, but I doubt it.

I agree, whenever there is an economic crisis the average people asks for the government to do something about it, but in many cases the politicians behind those governments are the ones which are directly responsible for what is happening, how can anyone expect for the solution to come from the people that caused the problem in the first place? If they knew how to solve the situation then the crisis would not have occurred to begin with.

[2stout]

Totally agree that CBDCs won't save weak currencies.  Fiat 2.0, I mean CBDCs, can't solve for the unlimited printing press of some of these currencies.  These currencies will be devalued due to their inflationary nature.

[franky1]

CBDC isnt suppose to save the paper fiat.. its suppose to replace it(emphasis: slowly over years.. not months)

the blog post in the topic creators rant is a blog about how in less than a year 1% of population used CBDC

this is because the role out was not africa wide and also in africa no one was 100% single currency so trying to get 100% in less then a year was never a goal..

even el salvador did not adopt msats(Lightning network) in 4 months before el salvador tried a new approach to get people to start using crypto. but in the 9 months after first 4month trial not all el salvadorians are using crypto

using the details of china;s CBDC as many think that in their tin foil theories is the worse case use of CDBC

people can have "cash"(no kyc) wallet. where there are no barriers of entry and no big surveilance..

the pitfalls of most CBDC
small deposit/withdrawal amounts

as for surveillance. its not the central bank(gov) doing the watching and authorising of peoples/business payments.. like fiat thats for commercial banks.
and those commercial banks hold the KYC of tier 2,3 not the central bank
there are still regulators that commercial banks report to and they report to courts and courts authorise the data grab.of tier 2/3 customers/businesses

.. so it operates the same as the US fiat system now. just electronic
the pitfuls is that the commercial banks can more tightly watch on the riches money movements and tax report them easier. no more suitcases of digital cash un accounted for. for the rich. only pocket money wallets of digital "cash" for  the small spenders