CBDCs Cannot Save Weak Currencies

[Davidvictorson]

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/

[1715032432]

1715032432

[Argoo]

CBDC is not a fiat currency scam. CBDCs should significantly improve the efficiency of government cashless payments. It also cannot be said that the system of national currencies of each state is not viable. With the effective work of the government, its functioning of the currency of this state will also be effective. This system has been developed over centuries and millennia of human history. It should simply be remembered that nothing is perfect in our gross physical world. Cryptocurrency is also not perfect. We need to be able to use a specific payment system for each specific case.

[woez]

I think there's a lot that can be said against central bank digital currencies. Central banks have no accountability and have repeatedly caused harm, often deliberately. I don't want to see them gain more power by introducing CBDCs. And it's hard to see how central bank digital currencies increase privacy. To me, the biggest threat from CBDCs is the loss of seigniorage, which would enable the introduction of a permanent expansionary monetary policy.

So if CBDCs cannot save weak currencies, what can? It depends on the situation, but there are a variety of viable options. For tether-like issuance, community banks could issue their own currencies in line with their local credit capacity. There is precedent for this some community banks have issued their own private currency notes.

[mk4]

I don't think CBDCs were made to "save" dying currencies in the first place? I don't think the economics of the currencies even changes. CBDCs are just fiat with more control for the authorities.

[Majestic-milf]

First off, these CBDCs were created as a means for the govt to distract individuals from embracing the coin and like the op observed, CBDCs are no different from BTC since they are both digitally crested but while CBDCs retract privacy from you, BTC retains it and since the government naturally cannot endorse what they can't control, set up diversionary methods.

 I think it's high time these financial institutions and govts tell themselves some home truth; CBDCs were never meant to help the Fiat. Take Nigeria and the e-naira for instance, rather they were created to further strengthen their hold. But alas, it's also failing.

[Lucius]

After so many threads about CBDC (central bank digital currency) why would anyone think that central banks are doing this to save national currencies? They are doing this to meet the challenges of the new digital age, and those who want to admit it publicly say that they are actually afraid of the increasing influence of cryptocurrencies, especially stablecoins.

As we have already concluded countless times, not only will such currencies enable the authorities to have complete insight into all transactions, but they will most likely be used to show that they are safer, better and more stable than Bitcoin or some altcoins/stablecoins. It is known that the EU has plans for a digital euro, but also that the current views are that the maximum amount per individual will be EUR 300, which means that we are still far from CBDC completely replacing existing payment methods.

[tvplus006]

...The eNaira, Africa’s first central bank digital currency (CBDC) is a total failure and did not save the Nigerian fiat currency. ..

If the financial system of the state is unstable, then CBDC will not be able to stabilize it. It should be remembered that CBDC is one of the types of money, along with cash and non-cash forms of money. Accordingly, if these types of money do not enjoy the trust of users, then this distrust will be automatically transferred to the CBDC.

[DVlog]

I don't think CBDCs were made to "save" dying currencies in the first place? I don't think the economics of the currencies even changes. CBDCs are just fiat with more control for the authorities.

It makes the already centralized system more centralized. Now govt can make you broken in a second by freezing all of your assets. This system will not be sustainable and people will be more focused on cryptocurrencies instead of CBDC. In Jordan people are already using USDT for local trade as their economy is broken a few months ago and their fiat currencies become worthless. It's clearly visible why crypto will be on the mainstream.

[vv181]

The referred article is significantly biased. The world's attempt to implement CBDC would act differently with each own culture and people's knowledge compared to Nigeria. We can not say the current condition in Nigeria is tantamount to what will happen in some countries when they implement their own version.

In the first place, CBDC ideation does not merely thrive to improve the "stability" of FIAT currencies, so if we are goes by saying it mainly will improve weak currencies, it is truly a misunderstanding and nonsensical. Since unstable money should be improved by any other means, rather than moving the money into digital form.

[Maidak]

CBDC is a digital version of fiat, in theory they are exactly the same, how can it be said that CBDC will save fiat or will save a dying economy. We live in the digital age and the advent of cryptocurrencies has prompted the government to issue CBDCs as a more convenient means of payment for the people and through which they can better control us compared to paper money.

The value of a country's currency in close relation to that country's economy, once a currency weakens because that's because the economy of that country is weakening, the only way to save that currency is to boost the economy.

[Gozie51]

CBDC is not a Messiah to any government policy, an economy that is already sick is left on its own, nothing magical about the introduction of it. It is only for the convenience of dealing of business transactions off and online since bitcoin is looked as if it is taking the global finance stage and some countries that have fear try to discourage the devaluation of their currency and introducing but they simply not understand blockchain industry.

[kryptqnick]

Perhaps others are right that saving fiat currencies is not the point of CBDCs, but I agree with the op that in case it is, it's not helpful. CBDCs can indeed do very little to stabilize a fiat currency, but perhaps they can help to save up on fees that banks impose on people and businesses, so there is some use to them. I'd also add that all fiat currencies are weak, pretty much. Major fiat currencies devaluated much more than they were supposed to, showing that faith in a strong Dollar or Euro is ill-founded. Russian ruble managed to become a very stable fiat currency, but at a price of Draconian controlling measures, and since the idea of linking the currency to gold was abandoned for good reason in the previous century, I wouldn't expect the current stability to be a long-term solution.

[so98nn]

Why would it be scam? I see no problem in having government regulated digital currencies as they are not going interfere with our daily lives at all. In fact those are way outs for the easier use of fiat on daily basis. For example, we can already see use case of digital payment solution in India through Unified Payment Interface. Even small Candy worth ₹1 ~ $0.015 !!! That’s the beauty of going digital. With this they are able to grow economy to the highest peak.

Let’s not mix up the things with crypto world I guess. CBDC is doing Whatever they needs to do for national development and I think that’s fiat system and we should have the border between two worlds always.

[cozytrade]

Perhaps others are right that saving fiat currencies is not the point of CBDCs, but I agree with the op that in case it is, it's not helpful. CBDCs can indeed do very little to stabilize a fiat currency, but perhaps they can help to save up on fees that banks impose on people and businesses, so there is some use to them. I'd also add that all fiat currencies are weak, pretty much. Major fiat currencies devaluated much more than they were supposed to, showing that faith in a strong Dollar or Euro is ill-founded. Russian ruble managed to become a very stable fiat currency, but at a price of Draconian controlling measures, and since the idea of linking the currency to gold was abandoned for good reason in the previous century, I wouldn't expect the current stability to be a long-term solution.

Yes, now you do not need to give fees to the bank but direct to the government. It is worse than that. It gives the government more power over its people.

CBDC is just a digital version of fiat currencies. There is no exception so there is no way it can assist in any way to a weak economy. It will create mostly an inconvenience to the majority of the population. Just think how some urban tribes in Afghanistan or Somalia will use CBDC without internet or a compatible device.

[Smack That Ace]

Last year, The government of Dubai has announced that they will remove all paperwork from administrative transactions and they will go 100% digital. This saves them a lot of money as well as a lot of time. Shows that the development of the world is moving towards a more civilized, more convenient. Using CBDC is simply a step forward in bringing technology into our lives, not a scam or a government trying to make excuses.
https://www.ndtv.com/world-news/dubai-worlds-first-government-to-become-100-per-cent-paperless-crown-prince-sheikh-hamdan-bin-mohammed-bin-rashid-al-maktoum-2648107

[bittraffic]

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/

If you post this on social media, you might just be fact-checked. The fiat Ponzi wants to stay afloat so they meant to use the centralized system that can stop the people from having thier freedom. Nigerians have BTC as an option but China didn't have an option. It seems CBDC is not flopping on them.

of course, all the things said about CBDC can be a borderline for conspiracy theory, especially the surveillance and freezing of money if you are caught on social media opposing the government. We'll truth comes out already with Paypal's term.

[naira]

CBDC is not a fiat currency scam. CBDCs should significantly improve the efficiency of government cashless payments. It also cannot be said that the system of national currencies of each state is not viable. With the effective work of the government, its functioning of the currency of this state will also be effective. This system has been developed over centuries and millennia of human history. It should simply be remembered that nothing is perfect in our gross physical world. Cryptocurrency is also not perfect. We need to be able to use a specific payment system for each specific case.

If it's not fiat currency scams then how can Fiat keep inflation in check if its value continues to shrink due to the absence of truly certain reserves? who makes fiat effective? Both CBDC and Fiat are actually governments just wanting to control your assets and don't want to see the decentralization of cryptocurrency ownership go unchecked. Are you just going to become a fiat slave to feel that you have lasting value? if fiat survives, the government will not issue a CBDC just to keep up with technological developments.
As @Lucius said, "just to meet the challenges of the new digital age". that's the conclusion!!

[hugeblack]

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.

[BlackHatCoiner]

Why should CDBCs save already existent national currencies? I'm pretty confident that the opposite will happen sooner or later; a currency reset, which will introduce us to CBDCs.

The only advantage of CBDC is that it reduces the fees for printing money and thus saves a lot of money.

One more advantage, over to physical cash, is comfort. It's easier to pay for a dinner electronically if you're going to pay individually. Physical cash often introduces problems when it comes to change.

[Smartprofit]

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.