Topic: Central banks around the world want to get into digital currencies (Read 765 times)

The funny thing about it is the fact that China always fuds crypto at all times and yet there are billions of dollars going into crypto from china every month, why would I be worried about the fud China makes right now when they do it like once every 6 months? It is obviously empty threat and nothing will come out of it, that is why it is a totally useless deal and I do not really feel like we should be worried about it.

I get that the price is down, some people got scared and sold, some sold after the price started to drop, the longs are broken and liquidated, some stop loss was hit and sold basically many things happened back to back and it lead to price going down, and that is upsetting I get it. However the reality is that there is nothing wrong with bitcoin fundamentally and that is fine, there is nothing you should be worried about and just sit back and watch the price go up eventually.

Talking about CBDC is inseparable from China's initiation in it, after BTC became hype in the community, central banks began to create new strategies to counter the threat of fiat they manage. This condition is indeed being politicized by the Chinese government to raise the image of their CBDC so that the FUD that is spread is used by the whales to manipulate prices. Today was the lowest level for BTC after the bull market ended.

Whales are manipulating the market to make sure that such a situation doesn't arise. Just when everything was looking great for Bitcoin, we have the FUD from China which crashed the prices by 20%. One thing which I have noticed about the FUD from China is that it always occur immediately after some important milestone is achieved by Bitcoin in terms of global adoption. One thing that I don't understand is the panic selling from a certain section of users after each of these FUD episodes. Have they not learnt anything from the past?

Not all of them will implement it because this requires careful planning

"If he is not careful in drafting this cryptocurrency concept, then he can cause significant disruption to the financial sector, especially in the financial sector, banking. Don't let cryptocurrencies appear, people are lazy to save money in banks. They immediately put their money in banks central" Statement by BI leader

quoted from : https://finansial.bisnis.com/read/20210322/11/1370795/bi-tak-buru-buru-rilis-mata-uang-digital-bank-sentral-ini-sebabnya

The digitized currencies of the central banks of states should be regarded as more advanced non-cash forms of means of payment of these states, therefore, like all non-cash forms of payments of states, they will be tightly controlled by central banks and states in general. It could not have been otherwise. What exactly will be their characteristics will already be seen after their release. That is why cash must continue to circulate. They provide at least some lack of continuous financial control of the state over citizens.

The way Central Bank Digital Currencies are being researched and developed scares me a bit if I've to be honest. Today we have some financial liberty outposts (cash, cryptos etc.) but if the world is going to switch to fully digital currencies our future wealth is in a big danger. Am I the only concerned?

Absolutely agree. There will always be risks, it is unlikely that an ideal system without flaws will ever be built.
On the other hand, the transition to a digital format of settlements can make ordinary operations safer for an ordinary resident. For example, the introduction of technologies similar to those of cryptocurrencies, such as labeled tokens, will reduce theft or fraud of buyers to almost zero. For example, an application is received for fraudulent actions, the tokens on the scammers' account are "tagged" and become unsuitable for payment, and the victim will be "credited" with new clean tokens.
There is another "side of the coin" - full control by the state of your income / expenses. It doesn't sound very nice, but I have a suspicion that to a greater extent this is a problem for those who have something to hide, and more often than not, this is not a very legitimate income ...

Not surprising because central banks knows that huge number of countries population are using digital currencies and always do transaction through online. Also banks wants to get into digital currency of course to earn. They just ride on the flow of people in digital market. Maybe they also invest in digital currency like bitcoin to earn huge profit because they can't get tax from the people who are using digital currency.

Undoubtedly, the future is in digital currencies, and all these government efforts will definitely lead to a real result. But it is this total control over the turnover of cash that is a little frightening, because economic activity is not expressed in black and white colors, and the line between fraud and normal economic activity is also not always strictly defined. There may be a situation where a small ordinary person will be unprotected in the face of a ruthless state machine in the person of its representatives. It can happen all the time now, and it's even stronger here.

If they do not issue these new forms of currencies on public and decentralized protocols this is probably going to be the next big robbery against humanity. People should not accept these new forms of keeping old control with newer tools. I am afraid that is what is going to happen and digital currency will make people susceptible to be de-monetized at will (are you against your government? I am going to close your account!)
Bitcoin is some form of insurance against this, do not forget it.

The reason why banks are into cryptocurrency or let's say government are into cryptocurrency is because they want to get money the people in their country by asking tax when you use cryptocurrency like they have their own exchange then banks can get a tax from every trade that a person made. Even if the cryptocurrency is not centralized but they can still have a site that is centralize.

To begin with, I'm not sure that banks are just shaking from fear from cryptocurrencies. While banks control fiat and national currencies, and the means of payment in the country is the national currency (+ possibly dollar / euro), they have nothing to fear. And this situation is unlikely to ever change.
Now about digital currencies. For starters - I hope everyone understands the difference between cryptocurrencies and government digital currencies? So - national digital currencies - yes, this is the future! Many countries are preparing, some have gone further, but everyone will go in this direction. This is logical - reducing the cost of servicing fiat money. So that you understand - the costs of servicing cash are huge! Secondly, security and control. As you understand, it is extremely difficult to control cash, digital currencies are already easier, and using certain technologies, the level of control can approach 100%. Primitive theft of money will turn into a useless event, fraud and manipulation - most likely too - an illegitimate operation and tokens are instantly marked and frozen for movement within the system!
In a word, crypto technologies will take digital fiat money to the next level. Cryptocurrency will not kill fiat, but will only strengthen it and help transform it into a better "product"

Other than going with the trend, central banks are obviously doing shady stuffs that involves crypto or making their own digital currencies. It seems like they trying to outrun the current successful cryptocurrencies and at the same time, take advantage of the fact that the government is behind them. Even though they have the advantage when it comes to wide usage and legal transactions, I don't think they would succeed on taking over the cryptocurrencies place. People wants decentralization and freedom with their transactions, no one would ever want to stay on the grip of the government who abuses their power most of the time.

They are just going to implement the blockchain tech over here. A centralized coin, controlled by the government, fully regulated and nothing different from the current electronic transaction system (cashless payment system). They will be the same as the fiat currency, with the only difference being that the government can track each and every coin without much effort. Keeping their people under more surveillance.
As far as I have heard, China is already done with their digital currency. They are supposed to be launching anytime soon.

You said everything very correctly. Governments can pose a very big danger not only for cryptocurrency users, but also for large cryptocurrency companies. This is another example of why it is impossible to keep large amounts of cryptocurrency funds on the accounts of cryptocurrency exchanges. I believe that all cryptocurrencies should be stored in their wallets in complete safety.

I would not have any problem with someone that keeps a small amount of money in an exchange because he wants to trade or he is waiting for his orders to be filled, that is completely normal, the problem comes when people use the exchange wallet as their main wallet because they think it is more practical.

But then the exchange gets hacked or they close their account and they finally realize they never had coins to begin with, and I think there is the risk that governments will begin to confiscate the wealth of their citizens to pay their debts, and bitcoin is definitely an asset they will like to have at any cost and exchanges are an easy target for them to get all of those coins.

Are central banks so greedy that they don't want to make their own blockchain, but simply tokenize fiat into digital currencies?

It will be the same thing, I mean digital currencies are just a glorified fiat currency, they are just trying to reduce the printing of their legal tender but their digital currency is going to have the same purchasing power as their physical fiat. The only advantage of digital currency is that they are backed by the government and I think that's about it.

I also think it depends on the number or quantity of bitcoin that an investor have that might make them to hodl them in an exchange, to me that is. If I have a lot or some reasonable amount of Bitcoin, I wouldn't hodl those in an exchange but investors should only hodl some tradable amount of such assets in exchange just for trading in order to avoid such kind of losses.

Just still the same with fiat, if they do make out  their own coins then expect that it would be similarly be heavily centralized and i do believe that there are already some digital currencies
that had been made just like with hat Digital Yuan in China. Then what you can expect with those? Those are just simply fiat on digital manner but doesnt really make any difference
or something new that can be offered.Nothing beats out cryptocurrencies when it comes to decentralized and totally been transparent and these are the main
reasons on why people cant really just turned their back because they do know the importance of these things.