Topic: Central banks around the world want to get into digital currencies - page 2. (Read 765 times)

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

That's a good answer, I think governments can't take your coins from your wallet, but they can take it from exchanges. Think about it, if you are dealing with some place that deals with the government, there is always a chance that they can reach it. All they have to do is send a mail about what needs to be done, and if they send one that says "all local exchanges will have to deliver all the coins on their possession to government or it will be punishable by jail" and then what are you expecting these exchanges to do? They will of course deliver and give all the money to those governments.

This is why I think you should keep your coins in a secret hardware wallet, that way you could hide it from everyone. Of course you may want to trade or buy or even have a bit of money there, but do not keep all of it there unless you are using them, if you are not using it, just put it on a hardware wallet.

Banks can go for their own digital currencies but they can't be crypto like bitcoin. since all of those are backed by banks and can easily be manipulated. These digital currencies are just like digital fiat which is already in circulation.

As I was in doubt about this matter I sent a ticket to a national exchange which I'm customer asking if the government could create a law confiscating bitcoins, then the exchange just told me: well, we can't predict what the government will do.

Again I asked them in a hypothetical scenario where the government made a rule like this to confiscate bitcoins, how would the exchange act regards this matter, and they just told me to keep in the platform only bitcoins I use for trading activity and to withdraw the rest of my coins to a safe wallet. That was their recommendation.

After reading the two replies they sent me, a red sign lighted in my head...

If that happens then surely Bitcoin and other cryptos that are currently very high in price could return to like in 2018. But seeing this, it is not that easy for governments around the world to jointly ban and confiscate their people's Bitcoin and force to use a centralized one.  Although India has taken that policy in advance.  The US and many other countries are already open to developing technology.

They also need a competitor that is as equal as Bitcoin, does it already exist?

If that happens then surely Bitcoin and other cryptos that are currently very high in price could return to like in 2018. But seeing this, it is not that easy for governments around the world to jointly ban and confiscate their people's Bitcoin and force to use a centralized one.  Although India has taken that policy in advance.  The US and many other countries are already open to developing technology.  They also need a competitor that is as equal as Bitcoin, does it already exist?

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

They are trying to deceive people that is why they are doing this, we know that we have no need for those coins at all but since governments have realized they cannot kill bitcoin then they are going the next best thing, they are trying to put imitations out there and then claim their coins are better than bitcoin, something similar to what we see in the altcoin market with the difference those coins are backed by central banks.

The plan is simple they will try to get people to adopt their coins instead of bitcoin and when we add that a coin owned by a government can be even more oppressive than the fiat system we have in place then it is easy to understand their motivations, but from our point of view it does not make sense to adopt those coins, but that is us, people with a decent amount of knowledge about the economy and bitcoin, but the rest of the people are not like us, so I expect in the future those coins to have decent success if they keep up the charade.

Intense interest in cryptocurrencies and the Covid-19 pandemic have sparked debate among central banks on whether they should issue digital currencies of their own.

Yes they have been talking about it like seriously, but all the central banks digital currencies I have seen so far were never a success. And to be sincere if the central bank in my country should release a digital currency I don’t think I am ready to be making use of any of those, because first of all they are not really cryptocurrencies, they are not any different form of asset, because they are for sure going to be the same fiat or pegged to the same fiat, maybe we should call them stablecoins I guess.

I can make the same transaction that I would do with these CBDCs by using my bank app or my card, so why all the stress of buying it and still using it for the same transactions? Bitcoin and other cryptocurrencies are different , because there are ways that they are different and they are pegged to nothing.

“China’s experiment is very large scale,” said J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission. “When the world arrives in Beijing next winter for the Winter Olympics, they are going to be using the new digital renminbi to shop and to stay in hotels and to buy meals in restaurants. The world is going to see a functioning [central bank digital currency] very soon, within the coming year.”

The U.S. is playing catch-up. In late February 2021, Fed Chairman Jerome Powell said the U.S. will engage with the public on the digital dollar this year.

Advocates contend central bank digital currencies can make cross-border transactions easier, promote financial inclusion and provide payment system stability. There are also privacy and surveillance risks with government-issued digital currencies. And in times of economic uncertainty, people may be more likely to pull their funds from commercial banks, accelerating a bank run.

Intense interest in cryptocurrencies and the Covid-19 pandemic have sparked debate among central banks on whether they should issue digital currencies of their own.

China has been in the lead in developing its own digital currency. It’s been working on the initiative since 2014. Chinese central bank officials have already conducted massive trials in major cities including Shenzhen, Chengdu and Hangzhou.

“China’s experiment is very large scale,” said J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission. “When the world arrives in Beijing next winter for the Winter Olympics, they are going to be using the new digital renminbi to shop and to stay in hotels and to buy meals in restaurants. The world is going to see a functioning [central bank digital currency] very soon, within the coming year.”

The U.S. is playing catch-up. In late February 2021, Fed Chairman Jerome Powell said the U.S. will engage with the public on the digital dollar this year.

Advocates contend central bank digital currencies can make cross-border transactions easier, promote financial inclusion and provide payment system stability. There are also privacy and surveillance risks with government-issued digital currencies. And in times of economic uncertainty, people may be more likely to pull their funds from commercial banks, accelerating a bank run.

The source of that article can be found here: https://www.cnbc.com/2021/03/06/why-central-banks-want-digital-currencies.html

No one prevents the central banks of states from creating their own digital currencies based on the blockchain, so the centralization is different. It is foolish to expect total decentralization from such organizations, which usually have the word "central" in their names. Decentralization is possible due to the nature of the blockchain itself, but in strictly limited quantities and under the strict control of the central bank