Are CBDCs good for the economy? | Bitcointalksearch.org

RealMalatesta

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Quote from: Argoo on August 12, 2022, 11:50:19 PM

Since 2020, many countries of the world have moved from exploring the possibility of introducing national digital currencies to their practical development. Regulators predict that the use of CBDC will reduce the volume of cash settlements, make transactions more convenient, faster and cheaper, and also allow financial inclusion of the population, which still does not have bank accounts. Of course, CBDC will have a positive effect for states and for the population, as the state cashless payment system will become more convenient to use. But in practice, there are still very few states that can boast of ready-made CBDCs, so we cannot yet discuss their practical application.

The development stage is getting to an end, we are not going to see the nations continue to make calculations and developments for another 10 years, we are going to end up with something much better which is the fact that crypto could make them earn a good chunk of money and they do not want to be late so they are going to start publishing.

With the published ones we are going to see if it works or not, if it really works then it is going to be awesome, if it doesn't work then it may not be as good as people think it is. That's my guess and I do not think that it would be actually dangerous, it would probably be something we get to see and learn more about only after it starts.

stompix

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Quote from: lixer on August 13, 2022, 07:05:39 AM

Quote from: stompix on August 11, 2022, 01:38:55 PM

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I don't think so that 1 dollar is always 1 dollar but there are times that the dollar can decrease or increase by a tiny percent. Also the stablecoins that we are talking about here are only legit stable coins and not those scammed ones like ust and other algorithmic based stable coins. They aren't really stable because they can easily depeg.

One dollar bill is one dollar bill, there is no way a cashier will ask you for 102 bills to pay a 100$ product.
As for the "real" and "scam" tokens, how do you know others are legit?
Have you seen their cash, have you seen their bank account statements? Tether hasn't been able to come with proofs in years, why believe them?

Quote from: Smack That Ace on August 13, 2022, 09:04:59 AM

If not comparing CBDC to bitcoin or other cryptocurrencies, CBDC is much better than current stablecoins. CBDCs are simply fiat in digital form and they are managed and backed by 100% government so it is still safe when compared to stablecoins issued and managed by individual companies. Once CBDC is widely released and adopted on exchanges then that is the end of stable coin.

CBDC is like the numbers in your bank account, it's one dollar for one dollar, stablecoins are like casino chips, they are worth 50$ but only id the casino wants to exchange them for you, with no guarantee it will do so, no guarantee it will still be there tomorrow and without anyone else accepting them.

CBDC is just the digital form with fiat, with no real advantages no real disadvantages over your card, for example, stablecoins are just the worst of the worse of cryptocurrencies, they can lose value overnight, they can be frozen, they can become unchangeable as exchange delist them and there is absolutely nobody you can complain to.

davis196

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We are still at the early stages of CBDC implementation and there's not enough data for us to analyze and come up with conclusion about all pros and cons.
To me, CBDCs will be neutral towards the economic and financial growth and development. Their potential pros are fighting money laundering and tax evasion and removing the "middleman" of the monetary policies-private banks. I think that CBDCs will give more power to the central banks and take power out of the hands of the private banks. However, I might be wrong about this. There are more assumptions and guessing rather than actual facts, when we are discussing Central Bank Digital Currencies.

mindrust

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No. It is because they want to replace physical cash notes. CBDC’s are worse than the current FIAT system. CBDC’s are about full control. You can make some anonymous purchases with the physical bank notes but when CBDC’s replace them, you won’t be able to do that. If the gov don’t like you, they will just cancel your account and you’ll starve to death until you comply.

I don’t even think it has anything to do with crypto. They will just remove physical cash and rename the current system into CBDC and the rest will remain the same. It will still be centralized like it used to.

Findingnemo

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Quote from: Ozero on August 14, 2022, 02:06:23 AM

Quote from: Findingnemo on August 13, 2022, 10:16:16 AM

Issuing CBDC is not going to make any changes at all in the economy, everything will remain same only the way of transaction will be changed and users lose their privacy more and their Central banks will have more power towards controlling every transaction which is happening with the token.

It must be understood that CBDC is replacing the slow and outdated technology of government cashless payments. Both those and others are under the full control of the state and their banks, and nothing changes here. CBDCs make banking transactions faster, cheaper and more reliable, and in this regard, it will be good for both the state and its citizens. CBDCs are not cryptocurrencies and in some cases do not even use blockchain technology. But in general, their appearance will revive the world state system of payments.

I don't find the digital payments are slower, its just instant when you click send from your bank account then it will be received instantly on the receiver account irrespective of what bank account it is unless it doesn't involve other country bank account so CBDC is not going to make any real change at all.

Ozero

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Quote from: Findingnemo on August 13, 2022, 10:16:16 AM

Issuing CBDC is not going to make any changes at all in the economy, everything will remain same only the way of transaction will be changed and users lose their privacy more and their Central banks will have more power towards controlling every transaction which is happening with the token.

It must be understood that CBDC is replacing the slow and outdated technology of government cashless payments. Both those and others are under the full control of the state and their banks, and nothing changes here. CBDCs make banking transactions faster, cheaper and more reliable, and in this regard, it will be good for both the state and its citizens. CBDCs are not cryptocurrencies and in some cases do not even use blockchain technology. But in general, their appearance will revive the world state system of payments.

Davidvictorson

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Bitcoin is interesting because it appears to function as a store of value that becomes more valuable in accord with economic and technological advance. It may become the best combination of safety and return thus far devised, and therefore become the best possible investment for the average person. However, digital currency in the hands of a central bank is likely to be poisoned by the ability of the central banksters to debase the currency using digital trickery and treachery. In my opinion, it makes no difference in the economy as to whether it is good or bad. For example, I do not see any difference between buying something on the internet in dollars and using a digital dollar for the average consumer, doesn't come from the same place?

Findingnemo

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Issuing CBDC is not going to make any changes at all in the economy, everything will remain same only the way of transaction will be changed and users lose their privacy more and their Central banks will have more power towards controlling every transaction which is happening with the token.

Smack That Ace

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Quote from: AmoreJaz on August 11, 2022, 06:56:32 PM

Quote from: stompix on August 11, 2022, 01:38:55 PM

Quote from: el kaka22 on August 11, 2022, 01:22:56 PM

There is a big difference between CBDC and stablecoins. CBDC will be done with governments approval and that would be the key point there, and if you do that then you are going to be fine. But, if you are looking at things that would benefit you in the long run, stablecoins are different and they are a lot better.

Why are stablecoins better than CDBC?
At least with a CDBC, you will know 1 dollar is one dollar, with stablecoins you find out in the morning a UST is equal 2 cents.
Besides, even if stablecoins would be able to keep their peg, they are still doing this to a currency controlled by the same government that issued those CDBCs so, what's the advantage?
Let's add the fact that with stablecoins you don't have to worry only about the government freezing your account but by the ones issuing those stablecoins on top of that like tether has been doing for ages.

So, any reason why somebody would use them over CDBC?

you have actually valid points on this argument. with CBDC, you are at least secure that it won't go down hard as it is backed by the government itself. unless, the government is in deep trouble but the likelihood to happen this kind of situation is very low.
with stablecoins, we are relying on the team behind this, just a perfect example is the failure of UST. so you need to ask yourself, how secure are you with the team behind the stablecoin you are holding? what is the truth behind their assets pegged to it?

If not comparing CBDC to bitcoin or other cryptocurrencies, CBDC is much better than current stablecoins. CBDCs are simply fiat in digital form and they are managed and backed by 100% government so it is still safe when compared to stablecoins issued and managed by individual companies. Once CBDC is widely released and adopted on exchanges then that is the end of stable coin.

lixer

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Quote from: stompix on August 11, 2022, 01:38:55 PM

Why are stablecoins better than CDBC?
At least with a CDBC, you will know 1 dollar is one dollar, with stablecoins you find out in the morning a UST is equal 2 cents.
Besides, even if stablecoins would be able to keep their peg, they are still doing this to a currency controlled by the same government that issued those CDBCs so, what's the advantage?
Let's add the fact that with stablecoins you don't have to worry only about the government freezing your account but by the ones issuing those stablecoins on top of that like tether has been doing for ages.
So, any reason why somebody would use them over CDBC?

I don't think so that 1 dollar is always 1 dollar but there are times that the dollar can decrease or increase by a tiny percent. Also the stable coins that we are talking about here are only legit stable coins and not those scammed ones like ust and other algorithmic based stable coins. They aren't really stable because they can easily depeg.

Quote from: el kaka22 on August 11, 2022, 01:22:56 PM

I do not think that it would be great to invest in either, I would rather not do that, but if I had to pick one, I would go with BUSD over everything else. Because, I trust Binance more than I trust any other stablecoin or any government, they actually do want the best for you because what's best for you is best for them as well.

Invest? But, they are stable so earning a profit is not possible on them although they are useful to have in hand in preparation for the dip and that is the one that you're going to use to buy a coin. You can also convert your volatile cryptos to it to prevent them from fluctuating. That is few of the benefits of using a stable coin or cbdc. Busd is no doubt a good stable coin and next of it would be usdc and dai.

dothebeats

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It has its pros and cons that's for sure. Pros would be easier, faster, and more secure transactions. You also have a monetary system that doesn't require you to bring wallets for coins or cash as you can easily use your phone to pay. On the other hand, CBDCs make it much easier for the government to control money supply at will. It also gives them access to a lot of personal information and spending patterns of people who are using these currencies. Depends on you whether you'll use CBDCs or not, and I know that I'm not thrilled or eager to use them any time soon even if it becomes available in my country.

Vaskiy

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More countries are into development of the country's own CBDC. Few of the countries are Bahamas, Nigeria, India, Pakistan, China, USA, United Kingdom, Mexico, Jamaica, Russia, Sweden, Canada, and it goes on. Among the mentioned countries few have already launched their CBDC. Did these CBDC have made any impact over the economy? No, and it have made the governance easier with each and everything under the control and helping in the taxation in a better way.

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Quote from: Gayong88 on August 11, 2022, 01:59:43 AM

CBDCs are a potential solution to many of the problems now plaguing fiat currencies. But they're not perfect, and there's no telling how they will affect economies around the world—especially in all the tiny countries out there. After all, it is clear that the new generation of digital stablecoins could have a huge impact on the future financial landscape.

Stablecoin remains stable, you need to know that to show future economic growth it is necessary to have something that has a value that is increasingly expensive. This is a concept that is not much different from investment if we talk about stablecoins because they are equally absorbed from fiat, what can be taken when inflation itself persists?

Just as an example of where a more suitable answer to the big impact on the future financial landscape would be in Bitcoin.

noorman0

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I'm sure all countries also want to move towards the era of practicality. That problem can invade your privacy, you can still choose cash over CBDC unless the government actually removes its use. And the fact is, the supply of cash is always limited which of course won't be enough to cover all your privacy right? I mean you at least keep some of your wealth in a bank account.

I think the government's main concern is crimes that are very detrimental to the state, such as cases of corruption and laundering involving state apparatus and civil servants which are difficult to trace.

Argoo

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Since 2020, many countries of the world have moved from exploring the possibility of introducing national digital currencies to their practical development. Regulators predict that the use of CBDC will reduce the volume of cash settlements, make transactions more convenient, faster and cheaper, and also allow financial inclusion of the population, which still does not have bank accounts. Of course, CBDC will have a positive effect for states and for the population, as the state cashless payment system will become more convenient to use. But in practice, there are still very few states that can boast of ready-made CBDCs, so we cannot yet discuss their practical application.

justdimin

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Quote from: Reid on August 12, 2022, 04:52:28 AM

If it's not yet implemented then we cannot say for sure.
There are those who are still using cash for their privacy while when they start changing that to CBDCs you will be known wherever you pay. Even just for a pack of cigarette or just a candy bar. They can trace who did the payment and where it was done.
It will be long before this could become a norm to society. The availability for merchants to accept it just like cryptocurrencies should also be worked out.
And, I doubt it will be a peaceful walk because if the high number of people that are against it.

This is why I do not think that it would be regarding privacy. It would most likely be a revival to usdt or busd, because that way we would know that there is a guarantee behind it. People who would like to trust USA government more than they trust to tether or binance, then they would use these. If you still do not want to then you do not have to, there will be other options.

But, imagine having like 1 trillion dollar worth of CBDC in the market, that would be making everyone rich enough since most of that money will go through bitcoin eventually and making it grow huge. Maybe it will create some volatility issues in the long run as well but hopefully not.

Reid

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If it's not yet implemented then we cannot say for sure.
There are those who are still using cash for their privacy while when they start changing that to CBDCs you will be known wherever you pay. Even just for a pack of cigarette or just a candy bar. They can trace who did the payment and where it was done.
It will be long before this could become a norm to society. The availability for merchants to accept it just like cryptocurrencies should also be worked out.
And, I doubt it will be a peaceful walk because if the high number of people that are against it.

2stout

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I said it before and I'll say it again- No, this is nothing but fiat 2.0. However, this time it'll be so much easier, to the point of little to no effort, for them to track you. Also, what's stopping them from issuing an unlimited supply which will continue to lead to devaluation and inflation?

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Quote from: kryptqnick on August 11, 2022, 11:48:48 AM

I don't think CBDCs have actually gained much popularity, to be honest. There've been several countries looking into them and a few experimenting with a CBDC trial over some area over some time, and it seems to be legal tender in Nigeria (eNaira), but that's probably it. I'm surprised, actually, that they didn't gain more attention.
Overall, I think it can help with digitalization of the economy and empower the Central Bank of the state while possibly weakening private banks a bit. But it's neither good nor bad for economy on its own, as it's not a significant change: just a step up of fiat (but also a step away from privacy because there's no cash version and I think CBDCs probably require IDs of people, but I'm not sure).

I mean, are CBDCs even already live in the first place?

Also, I don't think it would be something that would necessarily be "popular". I'm guessing that it will just work in the back end, with end-users interacting with the CBDCs by just using a typical finance app.

Leviathan.007

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People are comparing CBDCs with cryptocurrencies and some people think CBDCs are cryptocurrencies I personally don't see any difference between paper money and Central Bank Digital Currency (CBDC) because in the end both are centralized and getting controlled by the governments the only that CBDC gives you are to being able to transfer the money easier comparing to the other old systems but it still has many restrictions and cannot change anything in the end, so I don't think if CBDCs are going to change anything for the economy.

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