Topic: Central banks around the world want to get into digital currencies - page 5. (Read 784 times)

Banks should have knowledge on how to use and how the crypto works and to be able to do that there is a need for bank adoption for crypto or simply a way for them to acknowledge that crypto is much useful nowadays and many prefers to use it in having transaction. There are plenty of questions whenever you will do cashout in banks about the money you have from crypto trading which sometimes irritating when they do checking too much since they don’t know how crypto trading works.

If they think they can compete with bitcoin, then they are wrong.

Central bank can make a digital currency and let people adopt with it with the help of the government, however, they can't compare to bitcoin in terms of transparency as central bank from its name is "centralized", it cannot compete to a "decentralized" asset or currency which is bitcoin.

economy that is currently unclear, has given up on the growth of crypto, they have finally plunged into the digital transaction system. This is how it should be, because if countries stand firm and reject cryptocurrency, they will struggle with monotonous economic growth. China long ago predicts its future economy, We have heard of this, and every country is planning well. we will see how they will convert fiat money into crypto.

The interest in cryptocurrencies by the central banks is because of the insane valuations these markets are gaining and it has nothing to do with the pandemic. We are hearing for a long time that we will see government minted digital currencies and we knew they will come up with their version of blockchain based currencies and expect that in the next 5 years.

All they want is to issue their own version of stable coins.
This would allow them the ultimate control over money, from KYC and following all the transactions to seizing the funds they want at will.
This is completely centralized and very far from Bitcoin's paradigm.

All in all, don't be too happy about those news...

More like these countries wanted to push their digital currencies since crypto currencies like bitcoin are getting the limelight they needed. While people are still fine using online wallets like Paypal as a payment method, I don't think they have that kind of idea to ride with the government pushing their digital currencies. I mean they can just use these online wallets with no problem.

This will take some time and for sure, there will be a lot of debate between government officials about this. They said that the current government is not against crypto currencies but what about these digital currencies?

There is a difference between digital currency and cryptocurrency...
but we are on the way to mass adoption of both. Several countries are already planning to circulate their own cryptocurrencies and it is true that China is currently the lead in developing its own digital currencies and cryptocurrencies.

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