CBDC and Regulation discussion

[Xal0lex]

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

They are unlikely to disappear because there will always be demand for such coins and they will be less problematic to use than CBDC. There will be increased regulation around CBDC. It will be the same difference as trying to trade bitcoin with USDT or fiat. Where there is fiat, there will be mandatory KYC, there is no way without it. So people who prefer to trade without KYC will still need stablecoins.

[o48o]

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

Yeah they definitely are coming, there's not question about that. But i don't see them "better" in a sense that they are not comparable and build for different reasons in mind. Stablecoins are a way to go if you are into DeFi.

But if you want just to hodl fiat money, it's not like it will be optional to go back to current fiat money system after CBDC has taken the whole system over. So i don't see it as better than stablecoins, but better then current fiat-money transferring system in general.

[Wiwo]

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 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.

Nigeria's E-naira can not be classified as a total CBDC since it does not run on the blockchain and there is nothing different between the e-naira and the normal naira in the bank account, and the only thing I see in the development of CBDC is the fact that the government want to digitalized income tax and with the E-naira or becomes very easy for them to achieve that tax regime which is not to the favour of the masses.
-If you have made any attempt to use any of the CBDCs you will discover that there are high fees and multiple charges on transactions compared to regular bank charges on transactions and this has made many citizens abounded their e-Naira wallets and embraces the traditional banking system.

[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?

So you are asking will CBDC become a killer threat for USDT like tokens?

First of all government doesn't want any coins or tokens to have monetary value apart from issued by themselves so we xan never expect that CBDC will be available for trading on exchange's particularly with a decentralized coin and digital money we are using and CBDC has no difference at all so I don't have any valid reason for using CBDC in the first sense.

[Abiky]

Yeah they definitely are coming, there's not question about that. But i don't see them "better" in a sense that they are not comparable and build for different reasons in mind. Stablecoins are a way to go if you are into DeFi.

But if you want just to hodl fiat money, it's not like it will be optional to go back to current fiat money system after CBDC has taken the whole system over. So i don't see it as better than stablecoins, but better then current fiat-money transferring system in general.

CBDCs will remove the need for paper money, so our only options would be to use stablecoins if we still want to enjoy some level of privacy in our day-to-day transactions. For better privacy, decentralized cryptocurrencies like Bitcoin and Ethereum would be the way to go (especially privacy-oriented ones like Monero and Zcash). The fact that stablecoins can be used in "De-Fi", should be more than enough for them to stand the test of time. Unless, governments make CBDCs programmable and widely accessible to the public (which is very unlikely they'll do that anytime soon), stablecoins will solidify their position in the crypto/Blockchain space for years to come.

You can rest assured there will be more pain ahead for stablecoins after the Terra UST crash. The SEC is now going after Binance USD, so only time will tell us where regulations will lead the stablecoins industry. Who cares about centralized Fiat (either as a CBDC or a stablecoin) when we can have freedom by using a decentralized cryptocurrency like Bitcoin? Just my thoughts

[avikz]

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?

You are mixing multiple things with no co-relation. First try to understand what CBDC is and what's it's purpose. 8t has no relation with cryptos. Also it doesn't guarantee that situation like  FTX will never arise again.

CBDC is just a digital representation of your fiat money. So if a crypto company claims that they are backed by USD, there's no way to validate the claim just because of CBDC. Get your concept corrected first!

[beerlover]

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?

Regulation of crypto after CBDC is created will be a hot topic, and will cause a lot of trouble for many people and raise a lot of questions. I think governments who finally manage to do it, will put a big strain on crypto and its movements and make CBDC a lot more relaxed so that everyone would go towards that instead of trying to work and make the current system better.

I know that CBDC will not be available for many governments for at least years, it is something that they are considering, but governments are slow, they are very large entities which makes them slow so even if they are considering, it will take years for them to do it finally.

[zasad@]

I decided to talk about Nigeria's experience in implementing CBDC
https://bitcointalk.org/index.php?topic=5440827

Central Bank Digital Currency tracker
https://www.atlanticcouncil.org/cbdctracker/

In the next 2 years there will be a very difficult battle between banks and the population of countries. I hope that people will interfere with this process as much as possible.

[Abiky]

Regulation of crypto after CBDC is created will be a hot topic, and will cause a lot of trouble for many people and raise a lot of questions. I think governments who finally manage to do it, will put a big strain on crypto and its movements and make CBDC a lot more relaxed so that everyone would go towards that instead of trying to work and make the current system better.

I know that CBDC will not be available for many governments for at least years, it is something that they are considering, but governments are slow, they are very large entities which makes them slow so even if they are considering, it will take years for them to do it finally.

Most countries are considering the switch from analog Fiat to digital, so it's likely we'll live in a world dominated by CBDCs in the future. Regulation is inevitable, especially when governments don't want crypto to achieve its full potential. They will force the use of CBDCs among their citizens. After all, CBDCs will enable both governments and central banks to have a full scope over a person's financial activity. It will mark the beginning of the end for privacy with Fiat as we know it.

When CBDCs come in, crypto will be there to save the day. Who knows if the launch of CBDCs will result in higher adoption for decentralized cryptocurrencies in the long run? Just my thoughts

[Ozero]

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 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.

Nigeria's E-naira can not be classified as a total CBDC since it does not run on the blockchain and there is nothing different between the e-naira and the normal naira in the bank account, and the only thing I see in the development of CBDC is the fact that the government want to digitalized income tax and with the E-naira or becomes very easy for them to achieve that tax regime which is not to the favour of the masses.
-If you have made any attempt to use any of the CBDCs you will discover that there are high fees and multiple charges on transactions compared to regular bank charges on transactions and this has made many citizens abounded their e-Naira wallets and embraces the traditional banking system.

You simply cited the negative experience of creating and using CBDC in one country. But in general, CBDCs are more efficient non-cash forms of payment for the state compared to the current existing ones and therefore will be successfully developed. But state CBDCs will also change for a long time until they acquire the most acceptable form and user functions for everyone. It is important that people have the choice of using currencies and their types. Cash is also necessary for us. The best option is to circulate all types of state currencies, including cryptocurrencies.

[Wiwo]

You simply cited the negative experience of creating and using CBDC in one country. But in general, CBDCs are more efficient non-cash forms of payment for the state compared to the current existing ones and therefore will be successfully developed. But state CBDCs will also change for a long time until they acquire the most acceptable form and user functions for everyone. People must have the choice of using currencies and their types. Cash is also necessary for us. The best option is to circulate all types of state currencies, including cryptocurrencies.

For the fact that most CBDCs have fallen short to meet the minimum success level with most of them not being built on the blockchain but just a digital form of their traditional currency they will certainly face the same problems as the fiat currency which are bad networks, and delayed transactions.

-take Nigeria's experience for example, the unavailability of the speed wallet and the issues of setting up the wallet is quite frustrating and at that many Nigerians avoid using it as an alternative.

[tvplus006]

For the fact that most CBDCs have fallen short to meet the minimum success level with most of them not being built on the blockchain but just a digital form of their traditional currency they will certainly face the same problems as the fiat currency which are bad networks, and delayed transactions...

CBDC is not a stablecoin, so it is not necessary to use blockchain to create them. It should be understood that CBDC is one of the forms of money and is in circulation on a par with non-cash and cash money. Accordingly, all the disadvantages of fiat will be automatically transferred to CBDC, including inflation.

[Wiwo]

For the fact that most CBDCs have fallen short to meet the minimum success level with most of them not being built on the blockchain but just a digital form of their traditional currency they will certainly face the same problems as the fiat currency which are bad networks, and delayed transactions...

CBDC is not a stablecoin, so it is not necessary to use blockchain to create them. It should be understood that CBDC is one of the forms of money and is in circulation on a par with non-cash and cash. Accordingly, all the disadvantages of fiat will be automatically transferred to CBDC, including inflation.

Exactly thanks for this understanding,  but some country central banks make public anouncement that the CBDC vs cryptocurrency because they the saw CBDC as an exit from their present traditional banking problems such as inflation and the rest of the other economic problems.

-Most of the CBDCs have faced a hard rock due to a lack of appropriate implementation and developments.

[slashz9]

it seems that for now it hasn't happened, because there's really no one to regulate it and I think the main purpose of crypto is not for that, but more towards something bigger, maybe there is something negative about it, but I think the positive thing is bigger when seen globaly.

[justdimin]

You simply cited the negative experience of creating and using CBDC in one country. But in general, CBDCs are more efficient non-cash forms of payment for the state compared to the current existing ones and therefore will be successfully developed. But state CBDCs will also change for a long time until they acquire the most acceptable form and user functions for everyone. It is important that people have the choice of using currencies and their types. Cash is also necessary for us. The best option is to circulate all types of state currencies, including cryptocurrencies.

That is true, people are so much against CBDC that they are forgetting the alternative is fiat. They think that CBDC is alternative to crypto, but in reality it is government issued which means that it will be alternative to fiat and that is why it is such a great project.

I like it very much and I believe that we should be focusing on it as much as we possibly could, and support it a lot as well. Why did we disliked fiat? Because it was centralized and basically controlled by government and dated method, nowadays we can get it a better way with CBDC, still government controlled but at least not outdated and it could be something much better for the future our nations.

[Abiky]

That is true, people are so much against CBDC that they are forgetting the alternative is fiat. They think that CBDC is alternative to crypto, but in reality it is government issued which means that it will be alternative to fiat and that is why it is such a great project.

I like it very much and I believe that we should be focusing on it as much as we possibly could, and support it a lot as well. Why did we disliked fiat? Because it was centralized and basically controlled by government and dated method, nowadays we can get it a better way with CBDC, still government controlled but at least not outdated and it could be something much better for the future our nations.

Don't get too excited about CBDCs, since they will give governments and central banks more power than usual. What they can't do with paper money (trace or freeze transactions), they will be able to do with a full-fledged digital currency. You can bet stablecoins will get regulated "down to the bone" once CBDCs are launched. They will probably even cease to exist  as governments will restrict private companies from issuing their own Fiat-backed digital currencies. What will survive would be decentralized cryptocurrencies such as Bitcoin and Ethereum. But there will be a lot of restrictions in place, that would make it difficult for the average person to access them with CBDCs.

This is just getting started, so we can't tell what the future holds for our society. We need to defend decentralization and privacy for people to get true financial freedom in a "surveillance state". Otherwise, we'll be doomed for good. Who knows how long will it take before CBDCs take the world by storm? Just my thoughts