Are CBDCs good for the economy? | Bitcointalksearch.org

RealMalatesta

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Quote from: Argoo on August 13, 2022, 12:50:19 AM

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, 08:05:39 AM

Quote from: stompix on August 11, 2022, 02:38:55 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, 10:04:59 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, 03:06:23 AM

Quote from: Findingnemo on August 13, 2022, 11:16:16 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, 11:16:16 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, 07:56:32 PM

Quote from: stompix on August 11, 2022, 02:38:55 PM

Quote from: el kaka22 on August 11, 2022, 02:22:56 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, 02:38:55 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, 02:22:56 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.

hyudien

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Quote from: Gayong88 on August 11, 2022, 02:59:43 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, 05:52:28 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?

mk4

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Quote from: kryptqnick on August 11, 2022, 12:48:48 PM

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.

Silberman

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?

Link to the news as reference:

https://twitter.com/thetokenist/status/1556986345972809728?s=20&t=bpZZ56l23Rh3v40wykXckQ

In terms of their economic impact CBDCs are probably as bad as fiat currencies, so in that front they will not be any worse than what we have right now, but the real problem with CBDCs is the huge control governments will have over the currency, privacy concerns are bad enough as you will not be able to buy anything without being under heavy surveillance, but now governments could even forbid you of buying what you want with your money, for your own good of course, so if possible I would not like for CBDCs to gain any traction at all.

Darker45

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It is probably good to the economy rather than bad. How good it is, I'm not sure but it shouldn't be a big deal. After all, it's just merely a conversion of the same fiat from one form to another. In other words, it is not really an economic move. A country's GDP certainly won't have a big change simply because it abandons the old monetary form and takes in a new one. But, again, it must be net positive to the economy. At the very least, maintaining bills and coins is costly.

AmoreJaz

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Quote from: stompix on August 11, 2022, 02:38:55 PM

Quote from: el kaka22 on August 11, 2022, 02:22:56 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?

hatshepsut93

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It's hard to talk if CBDC is good or bad for the economy if they don't even exist. And there's actually not that much interest in them as you might think. It's just that officials from some countries are saying a few words about them a few times per year. But there's no indication that countries are making serious effort to create such systems.

In general, I see no mechanism for CBDC having any significant effects on the economy. It's just a payment methods. It doesn't allow you to fund projects in some new ways, or combat inflation or boost consumption. So ho can it be good or bad for the economy?

Fortify

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?

Link to the news as reference:

https://twitter.com/thetokenist/status/1556986345972809728?s=20&t=bpZZ56l23Rh3v40wykXckQ

I think they will be good in the long term, but that is looking 10-20 years out. It'll take generations to change peoples behavior on such a big topic, like people transitioning from using horses to cars, from switching from radios to TV sets, it is not going to happen over night. The one thing that really needs to be supported in the rollout is people who have poor ability to access the internet - whether that is the homeless or elderly people who might not be as knowledgeable on the subject, they will need the most support. It should only ever be considered as a backup, supplementary option at the beginning because people will hold onto paper money and coins to an extreme until the convenience proves itself.

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Quote from: el kaka22 on August 11, 2022, 02:22:56 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?

el kaka22

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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.

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.

kryptqnick

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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).

Gyfts

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They aren't good for the economy -- they're mere digital tokens that will undoubtedly be created from thin air and be used as a means to limit cash based p2p transactions. Granted most banking is digital anyways, they'd just prefer to cement paper currency's fate. The appeal is to conflate CBDC's with crypto currency, and to the average consumer, they probably couldn't tell difference.

Being able to control the money supply by merely generating new tokens is as dangerous as it gets.

DVlog

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?

Link to the news as reference:

https://twitter.com/thetokenist/status/1556986345972809728?s=20&t=bpZZ56l23Rh3v40wykXckQ

My question is to you does paper cash good for the economy? I do not find any difference between paper cash and CBDC expect their appearance. You can touch paper cash it has a physical form and you can not touch CBDC it's a digital form of paper cash. As long as govt has full control to print money and increase money circulation, the main problem in our economy inflation will not be solved.

avikz

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

Please get your understanding right! CBDC is a government released currency while stablecoins are cryptos. Both are structured in different ways.

CBDCs are definitely beneficial for the issuing government in multiple ways. But for citizens, it's an issue for their privacy. They will have convenience obviously, but the financial privacy will be gone forever. Only time will tell how much successful they will become.

palle11

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The effect of CBDC may cause some business aspect to suffer while some will have more bull in them because of the payment system. If the digital currency starts operating fully then more than before, more businesses will go online and those that couldn't will keep staying physical and may not get enough attention and patronage. It will be like source of living shifting from one person to another person. It will be easier to make payment for products or services done online with digital currency than fiat. Apart from banks income in fiat it will affect common business owners that won't be able to go digital and less attention and liquidity will go to fiat.

bitmover

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Quote from: mk4 on August 11, 2022, 02:49:31 AM

CBDCs are pretty much just fully digitized dollars with likely far more restrictions. Not sure about the economic impact being good or bad, but it's surely bad for the privacy of the masses.

There is one big economic impact : banks.

If you own a cdbc, you will have cut off the intermediary, the bank, and you will own something straight from the federal reserve or central bank.

There will be no more need for the banking system to hold fiat .

This is a huge economic impact.

Personally, I don't believe big democracies like Europeans and USA will let per
People own a lot of cbdc, specially due to the banking system lobby (they will be much affected)

And no government want a financial crisis.

Maybe in countries like China and Russia where rights are more restricted and there is a bigger control from the government over the economy it is possible there cbdc will grow faster.

Hispo

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In my opinion CBDC's once they start to be implemented they will be pictured as a good thing for economy, also they will be designed to be easy to use by the end user and as a frictionless payment method between people and between people and companies, I suspect there will be even promotions and bonuses by paying with CBDC.

Banks will surely require citizens to have their own CBDC account and there will be an official app on the Play Store/ iStore.

On one hand, if CBDC's manage to get a huge percentage of adoption, their frictionlessness may force other payment processors to improve their services and customer management in order to avoid getting out business and CBDC's could even stimulate consumerism & credit (both being critical components of nowadays capitalism).

So there is a chance CBDC could make a positive impact in the economy of their countries, however, the price to pay for this (loss of individual privacy and other civil rights) do not seem worthy to pay.

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Up to this day, there is no country we know that actaully are using CBDC but China. What they could say about it is good although we may not really know until your country tests your CBDC on you. Base on Chinese reviews, Chinese CBDC is secure and convenient to use. What works for them will also work for other countries like Australia.

I do think the issues being told about CBDC are true such as like limiting where to spend the money and the expiration of the money. Who in the world would do this to thier people?

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We're still don't know how easy and convenient to use CBDC rather than using current third party online payment e.g. Paypal, if it's more easier then I expect CBDC will have a slight good impact for the economy, but if it's similar like using Paypal, where it took a few days or more about the transaction, I don't expect any result then.

I'd say CBDC is an overrated discussion while the use cases aren't completely different with fiat on online payment.

zasad@

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Some countries are starting to phase out cash or reduce the amount of cash in circulation. For example Sweden. There are many benefits to doing away with cash. No need to spend money on cash control and replacement of worthless banknotes. Reduces the number of robberies because there is no cache. In such countries, the introduction of CBDC will not greatly affect the economy. In large countries, Russia, the United States, it is much more difficult to control the economy with the help of CBDC.

HeRetiK

legendary

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I believe anything that reduces friction in how payments are made and consequently how services and goods can be consumed is good for the economy.

That being said, I'm wary of CBDCs. If introduced, I believe it could give people the illusion of control over their own money. Aside from privacy problems, CBDCs will likely be just as easily frozen as regular bank accounts. Don't expect the permissionlessness of cryptocurrencies -- If physical cash wouldn't already exist, no way in hell governments would introduce it today.

crwth

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If it's about all the total amount of circulating supply of money that is in the world, I think it can be somewhat detrimental if it's not regulated or something. Of course, there are drawbacks with the part where it's not regulated, but it is ideal for the ones that really don't have banks or easy access to it. I'm just worried that it's going to be out of control.

NeuroticFish

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

This is a misunderstanding. Not all stable coins are CBDCs. CBDCs are Central Bank issued Digital currencies. Focus on Central Bank. They don't even have to be cryptocurrencies.

Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?

CBDCs are just a (another) digital form of the local currency. So the big economic impact can be only over the card processing companies (like Visa/Mastercard) which, in case of CBDCs will no longer earn millions from fees (of course, the shops will earn by not spending for those fees). And, as said, it's expected CBDCs will have a massive negative impact on privacy of its users.

Gayong88

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Quote from: Milan1009 on August 11, 2022, 12:11:50 AM

The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

What are your thoughts?

I myself think that stable coins will be very beneficial for the development of the credit system in the economy. As transaction times and costs decrease, new opportunities arise for applications such as loans, lending money, remittances, and credit card networks. On the other hand, the introduction of a new digital currency can lead to a devaluation of the currency in other fiat currencies.

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.

mk4

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CBDCs are pretty much just fully digitized dollars with likely far more restrictions. Not sure about the economic impact being good or bad, but it's surely bad for the privacy of the masses.

Milan1009

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The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.

Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?

Link to the news as reference:

https://twitter.com/thetokenist/status/1556986345972809728?s=20&t=bpZZ56l23Rh3v40wykXckQ

Topic: Are CBDCs good for the economy? (Read 318 times)