Topic: Are we entering the era of CBDCs? (Read 781 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

It doesn't matter. The true use for Blockchain technology is and always will be freedom from the government. With CBDC's the government going to be able to decide what you are allowed to buy, where you are allowed to buy and how you buy.

An absolute nightmare. Which is why Bitcoin will beat the CBDCs to the punch in terms of when it comes to becoming the one and only true global money. No more Oligarchs or shady politicians ruling us.

China's decision to ban BTC can be reverted. China seeing that governments are mining BTC then, their government will also do it while preventing any Chinese citizen/company from doing it.

If one day CBDC coins will be added and paired on the big exchanges, it may be easy for anyone to trade coins in cryptocurrency market. They can't just leave the institutions that owns stablecoins to make money, the government will not regulate crypto but jump into this market. It will be good for the regulation but it may also result to government able to see what everyone is doing with their money which is also another purpose of CBDC.

Governments don't want to lose a piece of the pie, so they're rushing themselves to launch their own CBDCs in order to reduce crypto's influence worldwide. I'm afraid they will be successful at the task as most people use Fiat as a medium of exchange. With CBDCs, governments and central banks will become much more powerful than they were before. Full-scale surveillance on a digital monetary system controlled by the government will mean the end of an era for privacy. Decentralized cryptocurrencies will still exist, but not many people will use them.

I believe China did what it did (full crypto ban) in order to force the use of its digital Yuan. If other countries start doing the same, then everything we've achieved in crypto/Blockchain land will go downhill in an instant. There are a lot of things that need to happen before CBDCs take over the world, so we should enjoy crypto while it lasts. Just my opinion

CBDC seems to be making a new wave on the shores of cryptos.
This did hit me a few weeks ago when I was doing a review on the Livecasino.io platform and amongst there accepted means of deposit and withdrawal was the digital yuan. It was shocking to me to have seen it future among the currencies run on a supposed crypto innovative platform but on second thought, I felt it was a Chinese based platform and gave no attention to the later.

This thread actually called me to it but, the truth is; cryptos and fiat's were meant to run side by side (Centralisation and decentralisation). It doesn't matter what nature it would take, either as a digital currency or not. Non was to displace the other as they could serves purposes that are exclusive. With Cryptos not needing a swap to be accepted across border, it's speedy transfer and confirmation which is exclusive to cryptos. They've got there uniqueness and the lack of the other is compensated in the next. We could only hope that they evolve together and not for one to diminish the other.

CBDC will soon indeed be one of the most common forms of fiat, as the digitized currency of the states will be more efficient compared to the current non-cash fiat of the states. But nothing much will change. Fiat will simply move to a higher form of existence. Moreover, the population will quickly switch to CBDC, people will even need to be forced to do this.
Cash is already gradually being replaced by non-cash, however, both the state and society still need these two forms of fiat.
But whether the current private and other non-state stablecoins will remain will depend on the states whose currency these stablecoins are backed by.

The era of CBDC is coming and I know that is not going to be now even though the bank of China already has their own digital currency that is mostly used in China. The stable currency that are spurring out of the market are going to flood the market for a while before nations will seat together and form their own CBDCs. It's going to take a while before that is going to happen even though China had taken the bold step to come up with their own.

The era of the CBDC is going to turn the market to something else. It is going to have a bigger effects other cryptocurrency market market the government to look for every single opportunity to force people to adopt their own digital currency by enforcing laws that will make us embrace what we don't want.

It has become a trend among most of the countries to have their own CBDC. If we take the usage data of cryptocurrency or fiat over specific time period. Then the usage of fiat stands high against the cryptocurrency. This is the reality, but in the name of making themselves adoptive to the global market countries intend to have a common. So, analyse and understand the need before going for the development of CBDC for the country.

I do not know who he is, but I know for sure that if all the nations end up building their own CBDC then there will be plenty of people who are happy. First of all governments really prefer something like this because they know that there are 100+ Billion dollars to be collected.

Look at USDT, just that alone has like 100 billion, with all stablecoins collected we must be somewhere near 200 billion dollars right now total, and that means instead of going to some companies who would make money with it, this will be going to governments and they would love that. They could pay so much with that type of money and they could basically profit, or if they can't, print more money to pay to people.

the federal reserve has total control of bicoin. bitcoin is a cbdc dumbass. they rob people with it and use it as a tool to inflate and deflate right along with stocks. it has become just another tool for the fed to make or destroy money at will. fuck bitcoin it is just a piece of shit kike tool for misery and suffering and taking even more control of earth. until the jews are eliminated from earth there can be no freedom for anyone or anything

There is now obviously a growing bandwagon on this CBDC thing. Several countries are already making studies about the issuance of CBDCs. Some are already in the advanced stage while others have yet to start making actual implementations for the roll out.

But I think the transition of the form of fiat is overdue. The use of cash will have to be considered obsolete and central banks will have to embrace the digital way of doing things. CBDCs are the new way of doing fiat.

Exactly. There are still people that won't use anything else other than paper money or plastic cards due to mistrust (or possibly fear) of the "new stuff". For CBDCs to take over the world, the old generation needs to pass out in order to pave the way for the new generation. Kids are already quite fond of technology in today's world, so it's probable they will become the new generation of a full-fledged cashless society. One thing for sure is that change doesn't happen overnight. It's a process that could take decades before the full transformation is seen before our very eyes. What matters is that crypto stays decentralized so people can have an alternative from the existing banking system. As long as it stays that way, there should be nothing to worry about. Just my opinion

The proliferation of CBDCs should be a matter of urgent concern to freedom loving people because it is the exact opposite of what cryptocurrencies are supposed to be.

No more privacy for the individual as records of your transactions are readily available to the prying eyes of the government. And China has shown intolerance to BTC and I am afraid that other countries issuing CBDC might be following in their footsteps.

OK, so maybe that's a bit harsh. I generally agree with you, just trying to find the silver lining in everything. As I see it, CBDCs won't be much different from the digital fiat we already use when paying bills and transferring money online. The difference will be that CBDCs will be based on blockchain technology, which could ultimately be good for greater adoption of Bitcoin and cryptocurrencies. Maybe if the new currencies succeed, Bitcoin would be more important than ever.

I am not 100% sure that we could go digital that much right away. There are still some people who use paper money let alone their cards and certainly not use digital transactions to wire each other money. If there are people who fail to do that, then how could we expect them to start using CBDC?

Maybe in the distant future when we are all old, and our families are no longer with us, that could happen, I mean when the X generation is the 70+ years old generation, then we could consider something like that but we have decades for that. This is why I think that CBDC taking over the system we have right now is not something that could happen anytime soon.

There's a fat guy in the Bank of International Settlements who would be very satisfied once all 100 countries in that IMF's report builds and launches their CBDCs. I don't debate the fact that we are entering the era of CBDCs, but as Bitcoiners, we shouldn't be bullish about the "coming era". It will stand for everything opposite of Bitcoin.

It's correct. The government is afraid that they will lose control of the currency, once they lose control of the currency they will lose control of us so CBCD is something we won't be able to avoid. Using CBCD would give the government more control over fiat usage.

Basically CBCD is digital fiat and the value will not be different. They will not eliminate fiat completely, maybe we will use both in parallel to suit each situation.

Not only China or Russia or India, there are more countries are planing to launch their CBDCs. You can see the list of countries potentially will launch their own CBDCs with CBDC tracker: https://cbdctracker.org/

From Research, Proof of Concept, Pilot, Cancelled and Launched, you can see in the map and list as well as can get more information of countries in the list. I consider CBDC launches as a good support for Bitcoin and crypto market but for world economy, it would be bad. It will worsen the inflation rate globally.

After China launched their CBDC, Russia and India have also launched their pilot CBDC which is being tested. Blockchain technology is being adopted world wide. The only difference between CBDC and cryptocurrencies is their regulations. CBDC is regulated by an authority whereas cryptos are not.
With this, we can say that we are entering the era of CBDC.

I think that all this will happen very quickly, everything will coincide with a big crisis, the fall of all markets and CBDC will come to replace fiat money. For governments/banks, this will be very convenient, because they will be able to control absolutely all financial transactions, each person. I do not like this model at all, because I love cash and I make almost all my payments in cash. So yes I think we will see a world with CBDC, and total control.

That's exactly what is happening already, governments want a digital currency they can create and be acceptable by everyone in other to erase the role of bitcoin or crypto but forgetting that what the people get from crypto can not be offered by government, should we talk about privacy, trust, accuracy, independency, security among others which government cannot afford, that is what geared their intentions towards creating their own CBDC and many countries seems to begin the adoption of same CBDC so as to shutdown cryptocurrency but i wonder how a decentralized currency can be stopped.

CBDC is essentially electronic cash. Like traditional fiat currencies. Central banks are increasingly concerned about losing control of money supply and payment systems, as cryptocurrencies are becoming more prevalent in payment transactions. Since CBDCs are issued by a central bank, they can achieve the benefits of central bank issued currency without the problems of the unregulated decentralized currency.

The IMF reports that almost 100 countries are analyzing the possibility of introducing central bank digital currency (CBDC), and some of these countries have already begun the implementation process. So, yes, we may be entering an era where these digital currencies will become more common. But I don't believe they will replace national currencies anytime soon. In fact, most likely, they will co-exist with national currencies for the foreseeable future, complementing them rather than replacing them.

Yes, we're entering the era of CBDCs.
Blockchain is the future, there's no doubt about that. Governments are catching the wave also. Plus, they don't need to print money from then on, just need IT infrastructure, which is environmental friendly.

As long as people do not get why fiat currencies and CBDCs are not good then we are going to continue to see those two currencies to thrive, however I think we are getting close to the limits of what the fiat system can resist, and when people are finally hit in the face with the reality of the failed fiat system that is when they will begin to ask questions about CBDCs and they will discover that it is just another form of fiat with even worse characteristics, and that is when a massive movement towards decentralized cryptocurrencies could occur.

Given the benefit of the doubt, and those assumptions? No arguments there too, it would obviously be the most perfect world for Bitcoiners if the cabal gave us back all finacial freedom through CBDC. It would make Bitcoin more valuable in another sense. The sense that many of us would like.

No arguments there but the assumption was about CBDCs that were created and controlled by regimes that aren't considered dictatorships like Canada's or China's. And also another assumption was that cryptocurrencies would be regulated like it is in many parts of the world. Like if Japan created their own CBDC and they already consider bitcoin a currency and have no problem with it being traded.

To be frank with you, that's a bad take in my opinion. CBDCs could be programmed to be "censorship-money" with a flick of a switch. It will also be easier for the govenment to ban CBDC wallets from sending deposits to exchanges, unlike cash which you can use in LocalBitcoins, or in person.

What the government, and the banks did to the truckers bank accounts in Canada? It can be done a lot simpler/more efficiently with CBDC. With CBDC, the government can control which users' wallets can transact where, and control which merchants' wallets can accept payments from which wallets. They will not do it right away at implementation though. They will market it as "a faster, cheaper and more efficient way of payment" first.

This is also owed to the pandemic era that we experienced and is still experiencing. During this challenging period, people are looking for ways on how to use their funds digitally, without the use of physical cash. And this time, crypto market also become popular as it shows a very viable option for digital payment. And now, creation of their own CBDC will be a very good way to have their digital fiat instead of using the physical local fiat. At the same time, the government has still full control of their circulation.

With the level of adoption or implementation of CBDCs, I mean every country is flowing towards it. This great movement by governments have vindicated cryptocurrencies.
It is now showing that the only or the major problem of governments with cryptocurrencies is that they cannot control and manipulate it as they do to fiat.
If government can control crypto, I don't think they would fight it in any way or for any arbitrary reasons of crime or energy consumption.

but china's digital Yuan (e-cny) is not using a blockchain at all..
instead its using 'federated smart contract tokens'

basically chinas central bank splits its initial value with about half a dozen commercial banks/payment services. in a multisig signed by all parties.
this is translated into altnet terminology. their 'funding lock'
then each commercial bank/service then splits their share with each other, again everyone signs including the central bank. thus they all audit each other at a smart contract level not a blockchain level.

IMO, I believe and I can say that CBDC development nowadays is gaining much traction in most territories that adopted cryptocurrency services, and it's noticeable because in my country it was also announced by our Central Bank and I can say that it was in the advanced development stage. but I dont see this as a treat to Bitcoin because it was just a digital version of our fiat currency, but still, it depends on the country that implemented it and I hope they will not follow what China did.     

China is a communist country so forcing the use of CBDCs is nothing out of the ordinary. They stripped down innovation by banning cryptocurrencies in their entirety. The government doesn't want to lose control over people's money, so it decided to quickly take action before it was too late. China is the first country to launch a CBDC, but there's still a lot of work to be done to fully digitize the mainstream economy. Considering that development of a new digital currency does not happen overnight, it may take years before we enter the era of CBDCs.

I wouldn't care about this, as long as decentralized cryptocurrencies exist. With decentralization, comes freedom. Who knows if the advent of CBDCs make decentralized cryptocurrencies like Bitcoin and Ethereum more popular in the future? Just my thoughts

Well news agencies like BBC have spread so much bullshit that I never trust them, specially when it comes to news from other countries. So unless you are from China and can clarify this http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4348521/index.html document by the Chinese government I stand on what I said.
It seems to be saying 1. cryptocurrencies like bitcoin are not legal tender so they can not be used as payment. 2. You are not allowed to run an exchange service 3. You are not allowed to use an offshore exchange service. 4. Any losses you have when investing in cryptocurrencies is on you.

As I said it depends on the purpose.
For example if it is gov-USD replacing USDT then sure, it doesn't matter when the US gov. gets on board.
But if we are talking about an international payment system and if China succeeds in constructing the infrastructure and get everyone on board then no it would be too late for anyone else trying to get on board. It's the same as 1945 when WWII ended and suddenly USD became reserve currency because US was first mover and succeeded on getting everyone to accept it.

It is possible for all Countries to adopt CBDC, because they discovered that the youths are no longer using the Fiat currencies to do their transactions of buying and selling of goods and services online. That is making the fiat currencies to devalue in their various Countries. But I don't think CBDC will take over bitcoin because CBDC is control by central bank of the country while bitcoin has no central bank control, bitcoin is a decentralized system of Currency which means no individual control it, but each individual control their own wallet not the whole system like fiat currency. And I believe, governments are trying to use this method (CBDC) to Link their E-Currencies to bitcoin and control it.  But before CBDC will be fully utilized in the whole world, it will take time. Now the world is in serious search on the data base of bitcoin.

They are trying to take the charge of the digital currency. And this CBDCs are part of the same idea. I don't think that it'll work out, it might for a while but in the long run, people are going to go decentralized currencies, as they give them full control on their money and somewhat anonymity

I believe that it doesn't matter how late you are, if you are a big nation then it will be used. Imagine USA starting theirs 3 years after china and Russia, do you really think that people wouldn't use their CBDC anyway? What do you calculate the bitcoin price with? I mean bitcoin is not tied to any money at all, it is a currency of its own, so when calculating you are not forced to use dollars, you could use euro, ruble, yuan and when you are dealing locally you do.

But, when talking about it globally, we talk about the price based on dollars, why? Because the USA is the biggest nation in the world economically and always stay that way. Even if they are not the richest one day, they will always be financially the most powerful.

The world is getting into the usage of cryptocurrencies in large scale. Right now governments weren't able to have control over the financial system. Just to keep everything under control governments have planned to have their own CBDC. As a result more and more countries are into research for the same and many have already launched their CBDC's. In recent months there were news about CBDC launch from Iran, Jamaica, Malaysia and it keeps counting. However the real-time usage of CBDC's can't restrict common people who have been users of bitcoin and other cryptocurrencies.

Finally government understands how to control the finance of everyone using them with the help of blockchain technology and have a much better grip on the financial transactions of every individual. I will stay away from CBDC for most part and i am sure they will have the ability to freeze certain transactions and even your funds.

It is decentralized but not anonymous, there is no complication in using them but valuation changes according to the forex market.

Not really. Let's go in order:

In May, China began restricting crypto in bancoing and payment services. And on September 24, China's central bank declared all crypto activity illegal, from mining to buying, to selling.

That is, a complete ban on crypto was introduced. https://www.bbc.co.uk/news/technology-58678907.

Next, China blocked all cryptocurrency tracking sites, as well as Alibaba stopped selling any mining equipment and the final touch was China's announcement that any investments in crypto are now illegal.

These are the measures they took to completely kick cryptocurrency out of the country and give complete freedom from competitors to their digital yuan.

If every country trying to introduce its own CBDC(Central Bank Digital Currency) it means these countries are finally understanding the power of Blockchain technology. And this will be the future of tomorrow's world.

But I personally think about it with the specifications of Blockchain and Cryptography, as these are anonymous, decentralized, and open-source technologies, and if CBDC gets introduced then it may against the specifications of the Blockchain and Cryptography technology. As CBDC will be completely centralized, and even in control of the government. So it will be more complicated for users to access CBDC globally due to inflation, and the price.

Now in general it is very difficult even to define the era into which we have already entered. Time is changing quite quickly, and technology is rushing along with the times.

With the help of centralized exchanges there can be the possibility of easy swapping of CBDC and Bitcoin like you have pointed out, yes it is possible for that to be done. But, are you ready for the centralised market in years to come?

A lot of things might change and the government can decide on anything, the only you will be safe from government’s regulation is by making use of decentralized/peer-to-peer exchange, although that doesn’t seem much safe anymore as centralized wallets would require every information about transactions going from their platform to an unregistered address. So, if you’re not giving out your information, someone else is doing for you. So, watch carefully.

I have to disagree here because it depends on the purpose of the CBDC. For domestic use, you are right it will never be too late. But if it is aiming for international use (which I have a feeling the pioneers are) it is a race of who can create it first and get others onboard to use it.
The same China that has been taking over the world economy is leading this too. With the ongoing trend of dumping US dollar as reserve currency a void is being created that unfortunately China seems to be trying to fill.

Entering yes, if you think CBDCs are something new, but they're really not. Every country almost I've ever spent money in already has some form of national fiat that's stored or recorded electronically. You use a banking system over the telephone or internet, and it's got to be digitalized somewhere. I mean, none of this is even physically backed by anything, that's as virtual as it gets.

As people have pointed out above, all that initial fuss about CBDC is really not the hurrah we thought it was for Bitcoin because most of them aren't even blockchain-based, those that are won't be public blockchains. It'll just be a ledger the government can truly keep track of and monitor, is all. My thoughts anyway.

There is nothing too late about it. If a country don’t want it now, they can decide it’s not yet time for them to get into such just because it is a trend. Most important thing that they have to do is just make sure that when they finally want to do it, that they are doing it in the right way. So far some countries that have released their own CBDC hasn’t been successful with it, not many people are really interested in making use of it.

The CBDC is just like you’re still making use of your online banking except that this time you’re now making use of a currency that is issued to you directly from the central bank.

Blockchain technology is expected to develop as a relatively mature technology. When a country uses blockchain technology, it may boost its economic development.
Digital currency will be the trend. It is more convenient and faster than paper money. But nothing is perfect. It also has many advantages: there are still many places without IoT. Digital currencies are also at risk of being stolen.
Now various countries are developing digital currencies. Digital currencies have gone mainstream.

Well, it seems some people have some special information to see the CBDC era coming. I see recent news about national governments focusing on blockchain research as well as implementing financial plans related to CBDC, but I still see some issues facing strong opposition and strong interest from a number of countries' commercial banks, but the opposite attitude of central banks, growing interest in CBDCs, and hoping the ongoing moves will make the future of CBDCs clear and have a good impact on the market as well as the current economy.

They have been in race to develop their own CDBC just to digitalized the payment system but the problem remains the same of being under their control and blockchain technology has not been fully explored by their experts.They are thinking it can hinder the growth of btc and other coins in one way but it can't and for me it's similar to making any tokens with centralised control.

Well all stablecoins are centralized so it matters a lot if we get a more trustworthy alternative

China banned mining but only chased away big mining farms not all miners from the country.
Additionally China has never banned bitcoin or its usage and from other cryptocurrencies as far as I know they have only banned ICOs, and rightly so.

All this would be fine if governments did not go the way of China, after launching their own CBDCs to monopolize the digital payments market. There is no telling how the digital yuan would have evolved or what popularity it would have had if China had not chased all miners out of the country and banned all cryptocurrency activities. The Chinese were taken away from their right to choose whether to use bitcoin or to use centralized CBDC. I really hope that there will not be such cases in the world practice anymore and CBDC will complement the crypto industry, not eradicate it.

I think we're still too early to tell, as crypto/Blockchain tech has a lot of things to improve in order to become widely adopted by the masses. There are issues/flaws to be discovered for CBDCs to be as robust and reliable as possible. That is if governments decide to use Blockchain tech for the new digital Fiat system. China may have been the first country to launch a CBDC, but it's still has a lot to catch up before it can become the world's leading economy (if it ever will). People just aren't ready for a fully-digitized world.

Apart from the fact that development of a CBDC will take years, getting everyone to adopt the new digital Fiat system will be quite a challenge. We already have stablecoins, so there's no rush in seeing CBDCs become a reality soon. As long as decentralized cryptocurrencies exist, nothing else matters. Just my opinion

lol good point about the hack, I didn't even think about that. We've already seen too many of them in all corners of the world that crippled something that was centralized! That has me very curious about what have each of these banks done to mitigate such attacks. Unfortunately there aren't any technical details about their systems, it looks to be completely closed source!

I absolutely agree that the average person cares very little about their financial privacy because they think that the authorities know everything anyway and that there is nothing to hide. Therefore, most people don't care whether they use stable coins or CBDC, it is important that the transaction is fast and cheap. As I already wrote, if you have to choose between two evils, it is logical to choose the one that has more legitimacy, and the CBDC of a stable country is probably less evil (risk) than some company that prints tokens as needed without being backed with anything.

Speaking of USDT, some speculate that they have already bought their own state (El Salvador), so I would not be surprised if they move their headquarters in that direction

Imho it's not the same. Now the eggs are not all in one basket, now one may need a warrant, there's some inertia.. it takes time...
When CBDCs will "rule the world" all such info will be in one place, to be centralized, checked, allow this or that entity just "help themselves" with all that data... and (as a different topic, but it now occurred to me) I don't even want to think what'll happen in the first hack (because .. you don't expect a government infrastructure to be as solid as the one of companies that literally depend on it, do you?)

Yes, there is no doubt we are now entering the era of CBDCs with the successful launch in China and soon we can see other countries to also have their own version of it and some more now in the planning stage. But this nothing to be afraid of as CBDCs are just actually digitalized version of countries' fiat monies with some touch of technology...their own version of the blockchain technology under a very centralized setting where control is definitely a lot, way better than the original fiat money. I don't think this will be competing directly with cryptos...but can even enhance the people's interest with cryptocurrency and maybe there can come a time when cryptos and CBDCs can be seamlessly integrated by many platforms. Certainly, am sure PayPal can be integrating the two, who knows?

Although there were a lot of fake propaganda about Petro but it was more like an ICO rather than a digital currency and Venezuela used it to mainly raise money which is probably why it would be considered a failure.

Isn't it already happening each time you use a centralized service (credit cards, debit cards, bank transfer, PayPal, SWIFT, VISA,...) to make a payment? I wouldn't say "more" censorship and surveillance, it would be pretty much the same as before.

The way I see it is that people don't have or care about privacy already. Majority of trades are taking place on centralized exchanges that have already enforced KYC. Majority of purchases using fiat is done through the same CEXes using banks and again a lot of KYC. Using CBDCs isn't changing anything about their privacy but will provide them with a lot of security because they no longer worry about when FBI is going to raid Bitfinex headquarters and shut down Tether.

Chin is just ahead, there are other countries that were serious about it but the news was swept under the rug for some reason. For example Russia claimed they have finished research and testing and will release the working solution in 2022. Iran also announced the CryptoRial is ready for launch soon.
It is interesting to know that all 3 are are members of Shanghai Cooperation Organisation (SCO) and have been moving away from using USD.

Not only China adds to this, I was recently reading an article about CBDCs, but in this case European. The European Central Bank is conducting research to implement a retail digital currency, it is interesting because even a member of the Executive Committee of the Central Bank, Fabio Pantea, comments that it is
Research on the complex potential interactions between CBDCs and monetary policy is left much to the speculation of what may or may not happen, as words like "financial stability" and "payment efficiency" are alluring, but falling into a BTC ban, it ceases to.

SOURCE: https://cointelegraph.com/news/ecb-executive-board-member-talks-about-current-state-of-digital-euro-cbdc-research

I think it's only China so far that's made developments this far? The rest that were interested in it are still only on the R&D process of things, and it's not odd really, China was one of the first countries, if not the one,  to actually start looking up to making their own CBDC. After all, it fits to a T to the way the government wants it to work.

From what I looked up China seems to have tested the use of their cbdc on the winter olympics(this last february). Even though it seems like it was only locally tested (foreigners weren't allowed from what I know), it seemed to be a success.

This is the era of CBDCs.
But does CBDC bring anything new or good to the table?
Definitely no!
The same centralization and stability. Infact there are decentralized stable coins which are great substitute to cenrralized USDT and Binance stable coin for those who care about privacy.

Being rooted in reasoning about CBDCs, government cannot come to the crypto world, steal the blockchain technology for their CBDCs and then continue to fight btc. If they started using blockchain, that means they seek for a level ground to make their fiat coexist with cryptocurrencies.

China Yua CBDC success is not surprising because China is a country that is first organised, second accepts challenges and plan for greater nation and thirdly is populated.
Unlike my country who launched e-naira and there is no effect of it in the economy.

I am pretty sure that everyone is just "research" phase right now, there aren't that many places that actually do take that time and build something that easily. I get that it may not be something that comes out right away, and I feel like it is going to take a while before we could move to a place where it is common knowledge and something we all use. CBDC is just an "idea" right now and ideas are dime a dozen and mean nothing.

If one person came to you and told you "I have a brilliant idea for a business" and offered you 50% ownership for all your money, would you really give that money? You wouldn't would you, which means government just has an idea, all of them, and it means nothing for now.

Would it be just the same when you are just simply converting  your crypto into fiat? Well, of course once you do make out some conversion from crypto to CBCD's which is likely for platforms to adopt or integrate on

then alone would signify that you wont really be worrying about legal aspects which you would really be that in concern whenever you do get yourself in attach with crypto.

We might not really be seeing to be as rampant as it  should be but we are really seeing small steps which might really become more common in the future.

It does seem that we are already there. CBDCs are becoming th order of the day, governments around the world are struggling to maintain power over the masses. I think they see Bitcoin as a threat, that's why they are intent on enforcing KYC regulations on crypto exchanges. Who's to say how thwell the adoption of CBDCs would go? At some point, I think it may become mandatory.

Yes, we are entering in a new era of CBDC. And I want to take it positively. If the central bank issue digital currency then we can reduce using stable coins. Its because likely most exchanges will accept that digital currency and it will be easier for us to convert our crypto to native digital currency issued by Central Bank. I think slowly every central bank will move toward CBDC.

Unfortunately this is the plan, at least for the authoritarian regimes that seek total control over their economies. CBDC's make it easier to control the money supply and offer an alternative to the traditional cash systems that we see. If the government can phase that out and eliminate intermediary processing services at the same time (credit card companies like Visa and such), they'll swap out CBDC's for their own currency and ban bitcoin to force adoption.

China is now ahead of everyone with the development of CBDC, with which it operates at the state level and is supported by the state, and if the population of 1.4 billion people use it, then it will be useful for cryptocurrencies in general, now I understand why other cryptocurrencies were banned in this country.

Honestly, I'm not surprised about yuan. China is an autocratic regime, and it pays special attention to the digital space of its citizens. So if the government says people should use something, they'll use it. And since CBDC is under state's control, it's not weird that people are using it. What's more interesting is how popular a CBDC can become in a democracy, where many criticize their government and are wary of its new initiatives. But we're, IMO, very far from CBDCs becoming widespread and the era of CBDCs. Also, I agree with the op that as long as there's no anti-Bitcoin legislation, I'm fine with such projects appearing. In my mind, they're a potential replacement of classic fiat, not a competitor of decentralized currencies.

China is a specific country where the government does not ask people if they want something or not, but simply puts them in a situation where they have to use something. Their CBDC is just a continuation of what has long been popular in China, such as WeChat Pay, which they say has about 800 million users, which means that people are already very familiar with digital payments.


Central banks have not recently started using blockchain, but have been doing so for years because they have realized that the potential is huge and the whole thing is completely free. There is information that China entered such research in 2014, and thanks to that, they already have a functional CBDC that is used by almost 300 million people.


I don't have a very good opinion of stablecoins, but I'm not too thrilled to replace them with CBDC - because the question is which is less evil than the two, shady private companies or corrupt governments and their centralized anti-private digital fiat. I agree that this would simplify the matter, but at what cost when it comes to privacy?

I would not yet say that we've entered the CBDCs era. I'd wait for at least one democratic country with a strong economy also adopts CBDCs in order to be convinced.
On one hand, it seems to be the direction central banks are interested in very much.
On the other hand, I am afraid it will lead to unprecedented surveillance and censorship, with no benefit at all to us, common people.


I think that Petro was not imposed to own citizen. And the people knew better and stayed away from that political scam.
China handed out a lot of eCNY for free to show the system works. I think that this was not the case for Petro.

However, you're right: does anybody in China get his paycheck in eCNY yet? Because if not (or far too few)... then we're too early to even call eCNY a success.

Petro though was a complete scam, if I'm not mistaken, it was supposedly back up by oil and by the Russian, however, they debunked it already and all the money that was raised was nowhere to be found. So this is a case of CBCD failure in my opinion. And maybe other countries that follow learn by Maduro's mistakes that's why countries like China (Digital Yuan) can be considered as success because they are very careful on their decision to roll out. There was a time that they just roll it out to some small provinces in China just to test the viability of it.

China seems to pulled it off even though they arent actually using blockchain. Maybe those countries should start seeing blockchain differently. I am more inclined towards a new system as long it can be useful and not being used on launder. Anyway, those waiting for it to be succesful before doing it could actually realize it when its too late already.

The problem is that most countries looked at the technology as a joke and had some small research done and decided not to move ahead with creating a CBDC. Some others decided to let others be pioneers and see if it fails for them then jump on board.
Lets not forget that Venezuela created their Petro and it didn't take off. That may have changed some decisions in other countries.

Maybe other countries have started to enter the era of CBDCs.
But if you're in Asia, maybe you haven't or there are still many other considerations.
Everything also depends on the holding of the central bank or the head of the paper bank because it is all also involved in the crypto world Of course there are risks too.

One thing with China is that it knows how to control it system alongside with the people, imagine in the first scenario whereby they ban every cryptocurrency activities from operations, they realize it will alter their own system, they have made such regulation that their citizens has no choice than to go by what their government offers and we all know how business and financial economy is fast growing in China. And as a matter of fact, i think China has been the only country doing well with CBDC amidst other countries that implemented same.


The only stable coin is see trending is the USDT and BUSD and CBDC has a different case scenario because it not a cryptocurrency, but if such services is made available for the conversion of CBDC to Atomic swap and then to stable coins then i think China will perform well here the more with the economy system than any other CBDC.

I think we need this CBDC to help reduce the fear of using Bitcoin for money laundering. My reason is because since this CBDCs will stand to replace paper fiats moving  within heavy brief cases every single transaction will  be carried out on the Blockchain making the local banks even less relevant except to monitor transaction and ensuring accounts keep up to regulation terms.

Since Bitcoin value will no longer be tied to a paper currency but rather a digital one. The issue of paper money printing will reduce and the case of using Bitcoin to fund illegal transaction as well since there will be moderate CBDCs in circulation limiting the abuse of fiat currency

They have to consider many things. They have to make strategic plans from technical development and implementation of their national CBDCs, and prepare infrastructures to support the actual usages of CBDCs in their societies.

It does not help for CBDC adoption in their nations if they simply code and launch their CBDCs while other infrastructures are not ready to support CBDC transaction, payment, tax, etc.

Probbaly some delaying it due to its potential of avoiding such launders. Just a guess! But of course everyone a fair shot on having a business using their own CBDC.

Thats the thing. Its not blockchain related so technically can we even called it a coin? Community should be educated by it and avoid confusion on the idea of cbdc.

CBDCs will be a future of fiat currencies and central banks will use it in order to facilitate their works. With CBDCs and centralized chains (?) which controlled by central banks, they don't have to cope with challenge from money printing factories, oil supplies and other production cost.

I don't like CBDCs but I don't see why governments and central banks don't launch such in their nations and for their monetary governance.

https://cbdctracker.org/

It is too early to talk about the era of CBDC, but this may well happen. Almost all states have recognized the revolutionary nature and indisputable advantages of blockchain technology in the financial sector, and not only in it. The digitized currency of states works more efficiently than the non-cash currencies of these states. However, many states are not yet in a hurry to introduce their CBDCs, because finances do not tolerate haste, and in such a serious matter.
However, the Chinese digitized yuan does not even use blockchain technology, so so far we have very little actual data on the operation of the CBDC.

The mainstream finance is slowly moving to CBDC era for sure. It provides a number of benefits to the government,

1. No more money printing. Governments don't need to maintain mints across the country to print notes. Just need IT infrastructure.
2. Complete surveillance on our finances. No more money laundering is possible.
3. Can't hide your income from the income tax department which means higher tax collection
4. The counterfeit money circulation will be effectively stopped.

Fiat currencies still offers a certain degree on anonymity which will be completely gone with CBDCs. Yes, I personally will not be bothered if they don't disturb the crypto ecosystem though.

Yes, we are.

I'll just use our own Central Bank's move as an example. Here's some part of their report on CBDC:

That report was 2020 and then just last month, they announced this:

---

India's Central Bank also plans to launch their own CBDC by 2022-2023.

Maybe members from Nigeria could also give us a feedback about the eNaira.

Surprisingly enough the Chinese altcoin (digital yuan) seems to be doing fine as they reported a little less than $10 billion worth of transactions recorded on their chain (if we can call it a chain!). There are also at least 2 new ones coming out in the coming months.

Suddenly it seems like the central banks jumped on board of the Bitcoin train but only took the blockchain technology and ran away.

I personally don't care how many of them are created as long as they don't try to ban bitcoin or restrict its adoption in any way (like closing bank accounts of those who dump fiat for bitcoin).
There may even be some silver lining that these CBDCs could replace the stable-coins in the market in the near future and we end up even seeing Atomic Swap capabilities added where you could easily swap one CBDC for another or for bitcoin without the risk of centralized stablecoins (issued by shady companies). That would definitely simplify things for traders while significantly reducing the risks they take.