CBDC and Regulation discussion

[OcTradism]

How can the government make sure that something like FTX (cooperate finance enriching themselves) never happened again?

Governments follow their citizens to submit proposals for regulations and approve some of them, apply them in their nations. They don't go ahead with regulations first so their regulations won't be able to prevent future scam types.

Crypto is presently not regulated and I don't see how regulation will fix this issue

Cryptocurrency is regulated now but it does not have strict regulations like in other traditional and older markets like gold, stocks, real estate.

my concern is the CBDC, I think it will work better as the real Stable coin, unlike Luna UST that team claimed was back by dollar but was not backed by anything... Wouldn't CBDC fixed this issue of fake USD backed stable coins?

They are not stable coins, but another version of fiat currencies which are launched and controlled by governments and central banks.

[GUIDE] All About Central Bank Digital Currency (CBDC)

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

It will take me months to see how CBDCs work, how secure it is before I use CBDCs as a replacement for fiat currencies.

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[pixie85]

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

It will take me months to see how CBDCs work, how secure it is before I use CBDCs as a replacement for fiat currencies.

More like years. In the UK they are currently looking for a specialist in the field. It's going to be hard to find someone who can do it since there was no successful CBDC experiment yet, but there was a number of unsuccessful ones like the one in Zimbabwe.

I can't believe there are people willing to use these surveillance coins. If you want to trade, use a stable coin. CBDC is going to be like a stable coin just with some added features like controlling your spending habits and carbon footprint.

[Captain Corporate]

The only good news for me is that our nation and government is so far behind about anything technologically developed that there is absolutely no way that we would be in the first 10-20 governments that could make a CBDC, which is why I believe that we will end up with nothing to worry about just yet. Its good because crypto is allowed and that means we are going to end up with a good result in crypto world without getting any interruptions in the long run. Thats good because without CBDC or anything like that, its just pure crypto, mainly bitcoin and ethereum, that people buy into and that's much better than some shitty CBDC people may get involved with.

[Xal0lex]

How can the government make sure that something like FTX (cooperate finance enriching themselves) never happened again? Crypto is presently not regulated and I don't see how regulation will fix this issue, my concern is the CBDC, I think it will work better as the real Stable coin, unlike Luna UST that team claimed was back by dollar but was not backed by anything... Wouldn't CBDC fixed this issue of fake USD backed stable coins?

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

Better than algorithmic stablecoins, but worse than stablecoins. CBDC is the same as fiat, only in digital form. CBDCs will be the same assets, subject to high inflation, strong censorship and regulation. Wallets can be blocked for any reason and there will always be a good explanation. For example, countering terrorist financing or money laundering. In general, CBDC should be avoided in the same way as algorithmic stablecoins.

[Abiky]

That won't happen, there is no way they would get rid of cash, paper money will stay as long as possible. I mean we could get rid of them even right now, even the oldest people can use credit cards and banks, and yet we still have cash and we still use it. Why do we use them? Because we are talking about something much easier with the amount of work required to use, it's a lot better.

I am not saying that it's the best method, but it's a method that we can't get rid of just yet, and if we ever did, debit/credit cards would be something a lot more used than CBDC. The only reason they are making this is the fact that they will give you something fake, and take your money, that's all they want.

Credit/debit cards didn't replace cash, probably because governments didn't force people to use them. But I think this time will be different, especially when decentralized cryptocurrencies are rising to power. Governments wouldn't want to lose control over people's finances, so they will make digital payments mandatory through the use of CBDCs. I believe cash will co-exist with CBDCs during the initial days of launch, but it will be slowly phased out until it becomes history. The only alternative people will have to preserve their privacy would be Bitcoin and its variants.

Regulations on the crypto industry will tighten over time, but that doesn't mean it's the end of the world. What matters is that crypto/Blockchain tech remains decentralized so that it could stand the test of time. As long as it stays that way, we should have nothing to worry about. Just my thoughts

[uneng]

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

Well, between the currently stablecoins we have disponible which are issued by private companies (which have already been under the center of a lot of polemics) and CBDCs which are going to be issued by governments, I think the second is still more reliable, right? Both are centralized and not 100% to be trusted, but at least the government can give some extra insurance those shady companies don't.

However, I'm not sure yet if the CBDC of a determined country will be disponible for citizens of foreigner countries, what would forbid most of us from using dollar CDBC.

[jrrsparkles]

How can the government make sure that something like FTX (cooperate finance enriching themselves) never happened again? Crypto is presently not regulated and I don't see how regulation will fix this issue, my concern is the CBDC, I think it will work better as the real Stable coin, unlike Luna UST that team claimed was back by dollar but was not backed by anything... Wouldn't CBDC fixed this issue of fake USD backed stable coins?

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

I want you ask you something do you really think the USD or any other fiat backed up gold and reserves like the government claims?

The fact is no, its no different than stable coin from Luna and others so it won't make any difference and the only thing is its from government but what will happen to cross border transactions it will be more convenient if we go with USDT than CBDC.

[Wexnident]

How can the government make sure that something like FTX (cooperate finance enriching themselves) never happened again? Crypto is presently not regulated and I don't see how regulation will fix this issue, my concern is the CBDC, I think it will work better as the real Stable coin, unlike Luna UST that team claimed was back by dollar but was not backed by anything... Wouldn't CBDC fixed this issue of fake USD backed stable coins?

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

They can't, simple as that. If they were able to I reckon they would've been able to stop any sort of scam possible after a short while. Even asking them to be perfectly public about their transactions can simply be solved by bribing whoever receives it and checks said transactions, that's just politics.

As for CBDC, well, thing is, that's just fiat but online. I don't see anything it can actually fix whatsoever since it's just that. Pretty sure if they ever roll over CBDC, we'd be pretty much forced to use it in the end since it'd basically replace fiat.

[tvplus006]

...my concern is the CBDC, I think it will work better as the real Stable coin...
You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

CBDC is not a stablecoin, so this comparison is identical to comparing the dollar with a stablecoin. CBDC is issued by the national bank and is another, high-tech form of money that will function alongside cash and non-cash forms of money. Accordingly, I will have more confidence in CBDC than in any existing stablecoin.

[Xal0lex]

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

Well, between the currently stablecoins we have disponible which are issued by private companies (which have already been under the center of a lot of polemics) and CBDCs which are going to be issued by governments, I think the second is still more reliable, right? Both are centralized and not 100% to be trusted, but at least the government can give some extra insurance those shady companies don't.

However, I'm not sure yet if the CBDC of a determined country will be disponible for citizens of foreigner countries, what would forbid most of us from using dollar CDBC.

Yes, they are both not secure and centralized. But it should be understood that with CBDC, you will get additional KYC and regulation, that is, it will not be as easy to use in the cryptosphere as regular stablecoin, which can be added to exchanges without any KYC. CBDC is the same fiat, only in digital form, and to deposit fiat on a centralized exchange, you must always pass KYC, just like with CBDC. Therefore, to work with cryptocurrencies, it is more reliable to choose stablecoins to protect yourself from additional checks and blocking.

[crwth]

Asking how you would be able to know to prevent a catastrophe like what FTX has done something out of the ordinary and wouldn’t be easy to figure out. There are a lot of people who have a different agenda with why they are doing what they are doing so definitely it’s hard but the regulations could probably help that.

Being regulated would mean that everything that you do would be accounted for, and make sure that are accountable for what they are doing behind the scenes and would prevent manipulations of some sort.

[Abiky]

CBDC is not a stablecoin, so this comparison is identical to comparing the dollar with a stablecoin. CBDC is issued by the national bank and is another, high-tech form of money that will function alongside cash and non-cash forms of money. Accordingly, I will have more confidence in CBDC than in any existing stablecoin.

CBDCs will "kill" stablecoins, especially when both serve exactly the same purpose. People will trust CBDCs more than stablecoins because they will be backed by the government. Private companies issuing stablecoins will be forced to close up shop or face serious consequences in the long run. Only decentralized stablecoins will survive because of the way they're designed. I don't think cash will live alongside CBDCs for generations, especially if governments are focused on reducing waste and putting an end to privacy for good.

Why should we care about centralized Fiat currencies (either CBDCs or stablecoins) when we already have decentralized cryptocurrencies such as Bitcoin and Ethereum? The whole point about crypto was removing the need for trust. Not to go back towards the past failures of banks. Someday people will recognize this when governments ramp up their surveillance efforts. As long as decentralization prevails, nothing else matters. Just my thoughts

[bayu7adi]

Wouldn't CBDC fixed this issue of fake USD backed stable coins?

The possibility of corruption cannot be easily avoided even with the use of blockchain technology, especially if the blockchain is centralized with some validators still having connections with the government.
It seems like there is no end to thinking about the wrongdoings committed by the government. However, with the emergence of CBDCs, the public financial system will shift towards cryptocurrencies and blockchain technology. Not too shabby, huh?
But that's not all, the existence of CBDCs is actually a massive government project aimed at making the national currency more than just a payment tool.

You as a crypto adopter would you like to use CBDC if the pairs are available on all crypto exchanges as a way to store yourself some digital US Dollar?

I will try to utilize it according to the available services and those that are suitable for me. I will never purchase it for speculation, of course.

[Hamza2424]

I am not sure about such topics exist for a long time in the Altcoin section or not as regulations of the Altcoins haha it's near to impossible as Regulations of Bitcoin can be discussed but there are those of Altcoins and their regulation sounds weird TBH.

Anyway 😉 wishing you better luck with the topic timeline as i am not confident with it. Altcoins pump crazy and dump crazy always because Altcoins are not used to off-hype management (in terms of sudden Volume increase).

[o48o]

CBDCs will "kill" stablecoins, especially when both serve exactly the same purpose.
-cut-

I don't see CBDC killing stable coins unless they they would be adopted on chains that allow DEXes etc and we need stable coins for that exact reason..

And DBDC is most likely not being adopted on any chain that's currently available as they are not capable for L1 confidentiality with auditability, Build in KYC etc.

[fzkto]

The only good news for me is that our nation and government is so far behind about anything technologically developed that there is absolutely no way that we would be in the first 10-20 governments that could make a CBDC, which is why I believe that we will end up with nothing to worry about just yet. Its good because crypto is allowed and that means we are going to end up with a good result in crypto world without getting any interruptions in the long run. Thats good because without CBDC or anything like that, its just pure crypto, mainly bitcoin and ethereum, that people buy into and that's much better than some shitty CBDC people may get involved with.

Once CBDC becomes widespread, it will quickly roll out to the rest of the world. This will probably be a tough time for cryptocurrency because there will be a lot of pressure on cryptocurrency because of CBDC implementation. So if governments start issuing CBDCs in the near future, we will surely be in for more shocks. But I hope that cryptocurrency will survive in the meantime.

[Odusko]

Even in Africa, people understand that CBDC is complete crap. If you haven't read the news then run the request: CBDCS FAILING IN NIGERIA.
CBDC is a complete total control over the population, so a decentralized cryptocurrency will be the only way to prevent the implementation of CBDC. Relatedly, thanks to CBDC, people are starting to use cryptocurrencies.

With the massive failure in the e-naira development and management, its obviously clear that CBDC will not be the answer to stability especially when most CBDCs are not ruined on the blockchain just like the e-naria e.t.c.
Regulations cant solve the issue of fake fraud and exit scams in cryptocurrencies project and the only we I think we can minimize the activities of scam projects in the ecosystem is to trust less and be our own custodial and never to risk leaving our assets on any of the third party exchange even if they're licenced.

[tvplus006]

...So if governments start issuing CBDCs in the near future, we will surely be in for more shocks. But I hope that cryptocurrency will survive in the meantime.

Based on the experience of China and Nigeria, where CBDC is already being introduced, such an introduction entails a ban cryptocurrencies in the country, including stablecoins. Thus, the government excludes any possibility of stablecoin competition with CBDC. Other countries may follow this did path.

[fzkto]

...So if governments start issuing CBDCs in the near future, we will surely be in for more shocks. But I hope that cryptocurrency will survive in the meantime.

Based on the experience of China and Nigeria, where CBDC is already being introduced, such an introduction entails a ban cryptocurrencies in the country, including stablecoins. Thus, the government excludes any possibility of stablecoin competition with CBDC. Other countries may follow this did path.

Other countries will certainly choose the same path once CBDC has been successfully tested. I think China is following its own path of development and will not share its experience with anyone else. We have to wait for CBDC to appear in the States or Europe. I agree about stablecoins, but CBDC is also introduced for control, so cryptocurrencies will also be excluded from interaction with it, or necessarily through verification.

[Abiky]

I don't see CBDC killing stable coins unless they they would be adopted on chains that allow DEXes etc and we need stable coins for that exact reason..

And DBDC is most likely not being adopted on any chain that's currently available as they are not capable for L1 confidentiality with auditability, Build in KYC etc.

CBDCs will be much more restricted than a stablecoin. As you've said before, they cannot be used in "De-Fi" protocols or even decentralized blockchain networks. Stablecoins would be a much better option in this regard. They may not go away after CBDCs are launched, but they will certainly be regulated "down to the bone". Regulations are inevitable, especially when governments want a piece of the pie.

People will trust a CBDC more than a stablecoin, just because it's backed by the government. But that doesn't mean stablecoins will die in the long run. Each type of currency will have its own respective advantages/disadvantages. It'll be up to you to decide which one to use for your own benefit. Who cares about centralized digital Fiat currencies anyways? As long as we have decentralized alternatives like Bitcoin and Ethereum, nothing else matters. Just my opinion