Brace yourselves, CBDCs one Step Closer

[BlackHatCoiner]

The report considers CBDCs to have a lot of potential and was a natural evolution of money.

History of fiat in the last century be like: pegged cash -> non-pegged cash -> non-pegged non-cash. Yeah, not regression, evolution! 

with things like putting an expiration date, or punishing you if you consume meat, do not get vaccinated etc.

Easier to happen, no doubt. But, couldn't the same be said for electronic fiat nowadays? It's happening in China, but not in most countries of the EU. I've never heard of anyone having their bank account closed for not getting vaccinated.

Brace yourselves for what? CBDC is pretty much just fiat with a different back-end(possibly tokenized) anyway. I'd imagine that a CBDC would just be a far worse version of USDT or USDC.

It will be a USDT, but it won't be backed by USD, because it'll be itself USD.

[Leviathan.007]

Coindesk revealed the Bank of America has been researching CBDCs and it seems that they are closer than ever. The report considers CBDCs to have a lot of potential and was a natural evolution of money.

According to Alkesh Shah, "CBDCs do not change the definition of money, but will likely change how and when value is transferred over the next 15 years." He thus added that central bank digital currencies have “the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money.”

Central Banks are already exploring the whole notion of developing CBDC systems so this may come sooner than one might think. What do you guys say? Ten years ago, I said that it would take 10 years for governments start adopting CBDCs. Now that 10 years have passed, some countries have already adopted it but it is still not mainstream. How long do you guys think it will take for CBDCs to become the norm?

Still, I can't understand why we should care about the CBDC because if you look deep inside it you will easily understand in the end CBDCs are just similar to the old traditional fiat and there is not any special thing about them because just like other governmental products, CBDCs are centralized and can be monitored and controlled by the government, also unlike what Alkesh Shah said, I think there is not any potential in this field because people are no more interested in these systems which can be controlled by the party elements.

[Blawpaw]

Brace yourselves for what? CBDC is pretty much just fiat with a different back-end(possibly tokenized) anyway. I'd imagine that a CBDC would just be a far worse version of USDT or USDC.

Yes it is pretty much fiat. But it is digital fiat which will still be controlled by central banks. And worst, with CBDCs governments can do what they please the same as they do with fiat but it would give them even more power over the common citizen's wealth than ever before. It is not the same a pure and simple cash wich you can stach under your bed. With a CBDC, citizens become totally dependent on what decision a central bank may take over their wallet.

[o48o]

-cut-
 Now that 10 years have passed, some countries have already adopted it but it is still not mainstream. How long do you guys think it will take for CBDCs to become the norm?

From what i know all these adoptions are still in pilot program stage and that's really far from adoption. Most companies have ton of different pilot programs that doesn't really go anywhere. They are just testing new ways to save money and being more efficient which is something most big companies should be doing in order to grow.

But if you know something that i don't, please share it.

[cryptosize]

Easier to happen, no doubt. But, couldn't the same be said for electronic fiat nowadays? It's happening in China, but not in most countries of the EU. I've never heard of anyone having their bank account closed for not getting vaccinated.

https://rmx.news/italy/italian-city-plans-controversial-social-credit-system/
https://www.youtube.com/watch?v=m3Hns_syl3k

"We should not become Italy" they said.

[BlackHatCoiner]

https://rmx.news/italy/italian-city-plans-controversial-social-credit-system/
https://www.youtube.com/watch?v=m3Hns_syl3k

"We should not become Italy" they said.

It doesn't answer the question though. People (or at least people who don't live under communism) haven't got their bank accounts closed until now. I'm sure they'd react.

[cryptosize]

https://rmx.news/italy/italian-city-plans-controversial-social-credit-system/
https://www.youtube.com/watch?v=m3Hns_syl3k

"We should not become Italy" they said.

It doesn't answer the question though. People (or at least people who don't live under communism) haven't got their bank accounts closed until now. I'm sure they'd react.

This is a pilot run... not the fully-fledged version.

USSR communism was also a pilot run, beta testing if you will. Now they're preparing the release candidate, since the USSR era didn't have so much technology.

Regarding bank accounts (and real estate):

https://www.ekathimerini.com/news/1180475/russian-embassy-says-bank-accounts-of-citizens-frozen/
https://www.aa.com.tr/en/economy/greek-banks-freeze-accounts-of-russian-nationals/2543735

Whoever thinks they're going to only target Russians is gullible...

Most people don't get it, but the roles have reversed:

Russia under Putin has old school capitalism.

EUSSR under Ursula is slowly turning to communism... the signs are pretty clear, but it won't happen overnight. One step at a time.

[jackg]

The American's government can just ask every citizens to convert their fiat to CBDC for now to next 7 days, if someone doesn't convert their fiat to CBDC in the next 7 days, any fiat will become worthless and can't be used anymore

Why would a government do that? It would be a stupid reason and no government can do that.

"we want to stop.money laundering", "we want to ensure our international sanctions are effective", "we want to keep our currency and markets secure".

Sure, if you do it in 7 days, inflation will rocket, stock prices might sour (and then reverse), your currency might tank compared to others in value (if there's too many restrictions). The US can't do a thing like that and neither could Europe, but China and countries similar with high inflation or bad relationships with their local currency might find reason to try it at some point as it'll offer them a huge amount of data and tracking potential.

Brace yourselves for what? CBDC is pretty much just fiat with a different back-end(possibly tokenized) anyway. I'd imagine that a CBDC would just be a far worse version of USDT or USDC.

If a CBDC interacted with banks, would anyone have a bank account? If it offered a fixed 2% return then I guess bank accounts would either have to out compete it or linger with old investors that don't know any better than storing their funds there (or ones apposed to change).

[franky1]

if you want to know statistics of how "fast" a country can implement and default a CBDC. look at how the UK swapped from the cotton/paper bank notes to polymer notes. and also how the queens face will be replaced by the kings face and swaps not redeemable after X date

in short: 1 year+100 days (15months) is one example in reality of taking old cash out of circulation to replace it with new style 'cash'

https://www.bankofengland.co.uk/news/2022/june/100-days-left-to-use-your-paper-20-and-50-banknotes

The Bank of England will be withdrawing legal tender status of paper £20 and £50 banknotes after 30 September 2022.

After this date, paper £20 and £50 banknotes will no longer be legal tender. So we are encouraging anyone who still has these to use them or deposit them at their bank or a Post Office during these last 100 days.

It is also exactly one year since we issued the polymer £50 banknote featuring the scientist Alan Turing, on what would have been his 109th birthday. The Turing £50 completed our family of polymer notes, with all denominations (£5, £10, £20 and £50) now printed on polymer.

[slapper]

Coindesk revealed the Bank of America has been researching CBDCs and it seems that they are closer than ever. The report considers CBDCs to have a lot of potential and was a natural evolution of money.

According to Alkesh Shah, "CBDCs do not change the definition of money, but will likely change how and when value is transferred over the next 15 years." He thus added that central bank digital currencies have “the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money.”

Central Banks are already exploring the whole notion of developing CBDC systems so this may come sooner than one might think. What do you guys say? Ten years ago, I said that it would take 10 years for governments start adopting CBDCs. Now that 10 years have passed, some countries have already adopted it but it is still not mainstream. How long do you guys think it will take for CBDCs to become the norm?

CBDCs and their potential economic impacts are fascinating to major financial institutions. However, CBDCs are state-issued currency. These options are cheaper and faster, but they can't match completely decentralized cryptocurrencies' privacy and security.

CBDCs will threaten bitcoin but not the banking system, contrary to popular opinion. CBDCs may be faster and reduce transaction times than blockchain-based cryptocurrencies, but they lack transparency and security. I believe crypto and blockchain technologies will shape money and payments regardless of CBDC adoption.

[Lucius]

Can you link to your 10 year old post where you claimed and discussed that?

I haven't had too much time to look through the OP's post history, but maybe some things got a little mixed up for him because he registered on the forum in 2013 - although searching the forum I found some posts that mention CBDC even then, although I'm not entirely sure if it's being done about the same thing we are talking about today.

Given that the OP makes a post after our posts, either he can't find a relevant post or he realized that he made a mistake, and in any case it would be polite to clarify what exactly he meant.

[franky1]

back in the 2013 era there were talks a government digital currencies but the buzzword CBDC didnt become a come buzzword till later years

back then(from memory) they used buzzwords more like DLT (decentralised ledger technologies)

[Ozero]

I was wondering, what is the difference between fiat and CBDC. In fact I doubt it will make much difference as the system is centralized and it's also possible that CBDC are more centralized than fiat at the moment.

The difference is a total absence of privacy with CBDCs, as much as the central banks want to say otherwise, and a greater ease of control on their part, with things like putting an expiration date, or punishing you if you consume meat, do not get vaccinated etc. by seizing a % of your money, making it so that you can only spend it in certain places, etc.

This is all potentially, I think that at first it will not differ much from the card payment, to which we are accustomed and increasingly we do it more willingly.

Confidentiality should not be confused with anonymity. With anonymity, any information about the participant in financial relations is completely absent, and with confidentiality, this information is hidden for free access and access is available only to certain officials who can disclose it only in certain cases specified by law. Therefore, there was no anonymity in relations related to the currency of states and cannot be. But the level of confidentiality can be different, and for example, European countries are in favor of a significant level of confidentiality in CBDC. Here, the state is trying to eliminate or reduce the possibility of fraudulent and other illegal actions with their currency, but for certain officials of this state, information about the participants in transactions and all the conditions of transactions will not remain a secret.

[BlackHatCoiner]

EUSSR under Ursula is slowly turning to communism... the signs are pretty clear, but it won't happen overnight. One step at a time.

Let's be patient then, and see.

if you want to know statistics of how "fast" a country can implement and default a CBDC. look at how the UK swapped from the cotton/paper bank notes to polymer notes. and also how the queens face will be replaced by the kings face and swaps not redeemable after X date

Craziness. I remember I had watched a short video of some UK secretary (I think?), which was supporting CBDC. I think it was Rishi Sunak. So repealing of cash has began in the UK?

[Jatiluhung]

I don't think there's much to prepare for this. CBDC is just another form of regular fiat. because its value is the same as the currency value of each country that adopted the CBDC itself.

Even I don't think CBDC will change anything. because even without CBDC, today remittance has become practical by means of money transfer through digital transactions between banks. and digital money transactions also take place quickly.

CBDC for me is just a path chosen by the government in an effort to reach its people who are interested in the cryptocurrency system. and still CBDC doesn't change anything because it's still centralized inside. it's just that the advantage is that because it uses Blockchain, transactions become more transparent.

I support the government's efforts in the adoption of CBDC. because this is indeed needed in adapting to the development of today's digital world.

However, I also hope that the Government pays more attention to whether the majority of citizens are equipped with qualified insights on this matter. especially those who are not young anymore. For young people like us, of course this is normal. because we are used to transacting via digital channels. but for the elderly maybe they need more education from the government. So I hope the government will also pay attention to this and prepare from an educational perspective. so that when the CBDC is ready and the community is ready to use it.

[rat03gopoh]

Ten years ago, I said that it would take 10 years for governments start adopting CBDCs.

Is it really running? Implementing the first time is akin to risking fiat existence (security, reputation, affordability). It shouldn't get a single failure at the start or else the whole system will crash including the old one. I don't think their trial phase will be finished for another 10 years especially if people's need or interest is still more for physical money.

[naira]

Central Banks are already exploring the whole notion of developing CBDC systems so this may come sooner than one might think. What do you guys say? Ten years ago, I said that it would take 10 years for governments start adopting CBDCs. Now that 10 years have passed, some countries have already adopted it but it is still not mainstream. How long do you guys think it will take for CBDCs to become the norm?

CBDC is unavoidable when it comes to technological advances, automatically the government touts finances to switch to CBDC. In order to save the state treasury, the people have stepped more independently and intelligently in securing their wealth in crypto. Instead of traditional fiat, the government realized that sticking with paper money without considering digital finance was a loss-making move. When America started this step, it is possible that other countries will soon follow.

[uneng]

He thus added that central bank digital currencies have “the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money.”

I think he is misunderstanding CBDCs with Bitcoin. Bitcoin is responsible for that significant technological advancement and revolution, not CBDCs.


Actually, aren't CBDCs the same of stablecoins, with the exception stablecoins are issued by private companies and CBDCs by governments? What do you think? If so, there is nothing inedit on this concept.

[Smartvirus]

Coindesk revealed the Bank of America has been researching CBDCs and it seems that they are closer than ever. The report considers CBDCs to have a lot of potential and was a natural evolution of money.

I am still of the perception that not much would change about how people will react towards a system that functions on the CBDC. Most of all, not compared to cryptos in itself. It still remains a CB backed currency with it being a digital fiat, not less centralised and so, its still going to come with some bias.

Cryptocurrency will as well continue to hold its position in our society, being something above government influence even in the face or regulations and it is its decentralized and unregulated nature that would ensure it strives.

Let the CBDC come, the narrative still isn't going to cause ge in respect to cryptocurrency but, would be as per how fiat is been used or issued.

[Hydrogen]

While central banks are known for setting interest rates, I do not remember them doing much in terms of currency minting or commercial banking. It is possible central banks are not well equipped to develop and deploy CBDC. Not only might they lack the personnel necessary to complete the task, they might also lack the infrastructure, communications channels and software necessary. All of which could take years and billions of dollars to develop and rollout within a reasonable timeframe.

While commercial banks are incentivized to produce value at high efficiency and minimum cost, the same precedent may not apply to state sanctioned entities like central banks. This may become apparent in terms of venezuela's central bank not doing the best job rolling out their own CBDC. I would be curious to know what would happen if venezuela attempted to deploy their own NFTs. Could they do it within a reasonable timeframe in a cost effective manner? Perhaps its safe to say that central banks do not have much experience with these types of tasks that have a learning curve to them. It could take time. Perhaps even decades before we see CBDCs deployed in earnest.