Topic: Are we entering the era of CBDCs? (Read 792 times)

Governments have no need to use Blockchain tech in order to get what they want. Their CBDCs will consist of centralized databases that can be restricted access at will. It's more like a permissioned, private chain but without the "Blockchain" nametag. China has its own digital currency in circulation, but that hasn't improved its position in the global economy. Things will be even worse for Chinese citizens using the new digital cash system backed by the government, as everything will be audited by the central bank. Even though it may appear that the government isn't spying on people's transactions, they could be doing it behind the scenes. After all, they control the system. It's much easier to control what comes in/out of a centralized digital cash system, than traditional Fiat in the form of paper money.

It's a dangerous world out there for anyone seeking true financial freedom. At least, Bitcoin and other cryptocurrencies will be there to save the day. As long as decentralization wins, there should be nothing to worry about. Just my thoughts

Why should this be any bad? I mean we had XRP which has been highly centralized and it was ruled by 2 people who are at the top of Ripple company and it has been doing well, it has been top 10 for many many years and people are acting as if that is a good coin for the past decade or so. If that is fine, then why shouldn't CBDC be any worse?

I believe that we should not be doing anything bad, we should be hoping that it would do well enough and that would be peaceful solution. Let the nations do their own CBDC and the people who would like to use it like me, would end up using it over things like USDT and the ones who do not want to, could stay away from it.

you might want to check on things..
lets use china's CBDC...

firstly there is no blockchain.. best comparison is LN or them 'federated' token subnetworks. but the first(of many) differences is, there is no master/main blockchain backing the value.
(no backed funding lock that is pegged from a blockchain utxo of mined coins)

instead the tokens come into existence by 'the peoples bank of china' and half a dozen private payment services co-signing a multig with X units of value..
this is their  funding commitment
these tokens come to exist because they all agreed it exists and the bank has authorised its existence with the payment services

where by the outputs split china banks tokens into portions for the payment services to have control of on their keys

below that. each payment service then splits its portion
parts go between other payment services to allow (altnet buzzword: routing between services)
parts go between regional agents of the service to allow altnet buzzword: routing between service and agents)
these are signed by the services and agents AND the bank

below that. each agent then splits its portion
parts go to its customers
these are signed by the services and agents.. not the bank

in china's CBDC case. there are 3 levels of 'agents'
top level is for the super rich/large businesses
mid level is for the moderate income/small business
low level is the low income

each level has a 'reserve' limit (max balance/spend)
whereby the low level is small they dont require any KYC to open an account. but are limited in how much they can send and receive.
if they want to send/receive more they have to  upgrade to the mid or top level agent app/wallet. which does require KYC
..
the low level wallets are not monitored like the top-mid are by the payment service. they are simply passing funds on request.(as said, small amounts so its not bother to check who done want and why)
..
the KYC data of mid-top levels are not on an open database or blockchain everyone in the system can see. its a closed database separate from the payment 'route' multisig. where by its held entirely and seen entirely only by the payment service and its agents.

1 payment service does not give full access to the peoples bank of china or its competing payment service.
however for levels top and mid. when a payment is "routed" the KYC of that payment is sent to the competing payment service.
no KYC is sent when those using the low level wallet is paying another individual on the network

the payment service does all the KYC storage and the suspicious activity monitoring, and reporting.
chinese authorities do not get told about every payment. nor all users of mid top KYC.
when there is a suspicious activity of top mid level. the payment details are sent to chinese authorities whom if requested the authorities then ask for KYC of that particular reports payment identity.

..
emphasis no government has nor ever will employ enough public sector analysts to watch every single citizens activities.. its impossible
instead they get the payment services to do the monitoring and only report the juicy suspicious stuff to government.

and no. china is not the exception. unlike fox news.. if you do real research. china is not spying on all its citizens all the time.. neither is the us government or any other government.

We cant deny that we do still need some banking product yet anything that do really opposes centralization will really be definitely be having this kind of treatment from them and of course they would

really be making something which would in line on their preference which is to be that dealing with centralized things.Era of CBDC's? We are already there but of course you know that community on

crypto space arent that dumb on showing up main support with these coins because it isnt something that too different with e-fiat which we know its just really too casual.

CBDCs may act as a boon or a bane. Only time will tell us how the world is using it.
If it's amplifies the usage of bitcoin and altcoins then well and good but if not then it will certainly impact the growth of cryptocurrencies.
China is really taking it huge with the creation of digital Yuan and lately I came to know that China is growing more than US economy.
If it keeps progressing then I am afraid that the world reserve might shift from the US dollar to the Chinese currency.
Once that happens, it will be easier for China to manipulate the price of bitcoin.

As far as I know, no government has a working product except China. It's going to take quite some time before we enter the era of CBDCs. From developing the new digital cash system from making people use it on top of paper money, we're talking about a minimum of 5-10 years for governments' CBDCs to become a widespread success. The biggest downside of CBDCs is that all transactions will be completely visible by banks and governments themselves. It'll be the end of privacy for good.

At least, decentralized cryptocurrencies will be there to save the day. As long as there's an alternative to CBDCs, there should be nothing to worry about. Just my opinion

Have you seen any government that make how their CBDC blockchain works? I have seen none, unlike bitcoin.

Even if they use blockchain, fiat will remain fiat. CBDCs are just modern fiat. No privacy, can be seized, restricted from the owner and it is controlled by the central bank.

They tried to test their compromise with censorship on Bitcoin Proof of Work network but failed. Bitcoin has proven its censorship resistance very well and onward we will go to brighter future with more belief in Bitcoin. Time goes and we will see more people converted from Bitcoin outsiders to Bitcoin insiders. It needs time but time goes always and we will see this growth chronologically.

CBDCs are centralized, can be censored, can be traced by centralized owners so such currencies won't give users any privacy.

Governments can use blockchain technology to build up their chains, ledgers but without decentralization, privacy it does not mean a lot for citizens. They will use CBDCs for some transfers in their lives but they will more prefer to really centralized currency like Bitcoin.

Exactly. Governments hate Bitcoin because of its decentralized and censorship-resistant design. The reason why central banks and governments are planning to create digital currencies of their own is to gain more control over people's financial activities. After all, it's impossible to keep track of every transaction performed with Fiat at its current state (especially when it relates to transactions performed with paper money).

With CBDCs, privacy would be over as everything will be highly visible in the government-controlled "blockchain". The pandemic is changing our society in ways that we've never imagined, accelerating the adoption of digital payments at a large scale. Who knows if we're closer to a cashless society than we've ever thought? Just my thoughts

This stable shit coin is another instrument made by centralized entities like they built USDT and few other similar concepts before booming as we see it today.
Govs already have a digital form of their Fiat money, so they aim to apply the same concept for cryptocurrencies even it's virtual by nature.

i guess, the progress of creating their own CBDCs is owed to this pandemic period where everyone wants to transact digitally. so to get out of physical cash, the government can develop their own CBDC instead of using stable coin, if they are not pro-crypto. this is actually good time to develop their own CBDC as people are trying to look for digital payment options.
we may see a lot of CBDCs in the next coming years. but of course, it is still tied to government financial system. but this may probably pave the way for its people to discover the benefits of crypto.

CBDC’s are coming because governments love the thought of them. They embrace the new tech age, they actually love the thought of bitcoin but they hate the fact they can’t control it so for thus reason they love CBDC’s. It’s just a matter of time until we live in a cashless society. I will continue to use bitcoin & in the future, shun any banking product.

I still remember the words of the British finance minister who said he deliberately wanted Britcoin (English CBDC) to beat bitcoin and disrupt the cryptocurrency ecosystem that was already running. countries that issue CBDCs must have a strong goal of disrupting the crypto ecosystem IMO (hopefully this is not true, and just my fear).

If only you know how much we dislike it too, you will feel satisfied thinking you are not alone but so many people are also against it.

CBDCs are like a counter to cryptos because they operate oppositely as to how crypto works but I think there is no need to worry thinking that people will convert to it because the reason why they are already here in cryptos is because they don't like how banking system works. They don't like the traditional money because it has some disadvantages over cryptos and no need to compare other countries to el salvador because they are too far from it since this country not only adopt btc but they also made it as a legal tender.

I'm also seeing it happening when China sees many countries are already adopting BTC,  they will reverse the decision and their government will have its own mining farm. Its probably not going to take long when they see the other countries that are their trade partners can pay in  BTC and free from sanctions. Although they may use Bitcoin one day,
they will also not abandon the CBDC they have. Its still meant for their dystopian China.

The last part is exactly why they have been placing increasing restrictions on bitcoin adoption over the past years. They know the adoption of their govcoin is hard so they are trying to do everything they can to pave the way for it.
I am almost certain that in the near future when their coin has reached a reasonable adoption they will reverse their decisions on bitcoin and start adopting it specially since the rest of the world is moving ahead and bitcoin is starting to be used in a lot of countries some of them as legal tender.

I would say that it is very possible that we are entering that fateful era, personally I do not like the idea of CBDCs very much, I am more in favor of Bitcoin, the fact that it is controlled and regulated by a bank makes it the same as any other currency, only now virtual. But continuing, I see that in several countries, such as in Europe and others you want to see how it would be to implement this method, it may turn out for them and end up creating a fairly sustainable system, but I support more the initiative made by countries like the Salvador  that prefer to use Bitcoin as a legal currency.

There have been many reports that the Chinese digitized yuan does not even use blockchain technology. At the same time, CBDC in Ukraine is not only built on blockchain technology, but also uses the ethereum platform. Therefore, public CBDCs are heterogeneous. Without a doubt, CBDCs will enjoy the support of the population of any state, as before they used non-cash payments of these states. After all, transactions should become faster and cheaper.
Cryptocurrency has very little in common with CBDC and all these financial assets will have their users.

To be honest, there are already so many eras that can be called ... each small period can be called an era? I think I would like something more global.

If more countries join Bitcoin, then China will have no other choice but to embrace Bitcoin at its fullest. The Chinese government is missing a huge taxation opportunity from Bitcoin mining. China can still dominate the economy with Bitcoin along its side if it regulates it. Introducing certain limitations/restrictions will allow Bitcoin to be used in the country legally without affecting the main currency (Chinese Yuan). China's digital Yuan may be the first CBDC to launch in public, but it still has a lot to catch up if it wants to become the world's leading economy.

One thing for sure is that getting the world to use CBDCs at a large scale is quite a difficult task. We're still in the early stages, so my guess is that we won't see paper money being phased out at least 1-2 decades from now. Just my opinion