Topic: Central banks around the world want to get into digital currencies (Read 784 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.

There is no doubt in my mind that something like that is coming, it seems that people forget that during the Great Depression the US government confiscated the gold that was in private hands, there were many people that disobeyed the order and were able to keep their gold and get great profits thanks to it and while there is no doubt that gold is easier to confiscate than bitcoin, how many people are actually holding their bitcoin in wallets only they control?

It seems to me that a great deal of people are storing their coins in exchanges and if at some point a law like that is passed then they're going to lose all their bitcoin, they will be incredibly mad about it but at that point there is nothing to be done, this is why if you're going to use exchanges you need to use them for what they are for, trade there and then immediately get your coins out of there.

Indeed, not all of the total Bitcoin in circulation can be confiscated by the government if this program continues.  but unfortunately, other forms of refusal still exist, for example all trading sites are frozen by the government so that their very fast movements have to be crippled because they do not have a permit.  Bitcoin users will return to like p2p so that all transactions are not detected by the government.  This is the worst picture of the government if it legalizes Bitcoin and replaces it with CBDC.  But I admit CBDC will not be equivalent to Bitcoin even though the direct government makes it.

In recent times I read an Swiss central bank is going to own bitcoins and that must be a a really good news, while they are doing this, some dumb central banks are busy looking for ways that they are going to ban Bitcoin, which doesn’t even work out since a lot of exchanges and traders will quickly move to decentralization once they place that ban, which means that the central would no longer get taxes from these exchanges, and even employees of the exchanges in those countries will lose their job which is bad for their economy.

Swiss central bank did a good thing by embracing cryptocurrency which might be turning as a trend setting for other counties to follow in near future .

It's more or less stablecoin but coming from central bank, even though they usually name it as CBDC which stands for Central Bank Digital Currency but it's just same thing.
Won't be really surprised if the whole crypto market don't get hyped up when these central banks released their own version of coin since it's like a copycay the existing stablecoins.

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...

There is no equal competitor to bitcoin, that is why there is a good chance governments are going to use authoritarianism to enforce their digital currencies.
Because through free will very few people would want to adopt them instead of bitcoin.

- The government has no evidence and no clue to consider the amount of Bitcoin are flooding the market, as an investor, maybe we all hid our bitcoins very well, even when the government investigated them, the results they got were nothing. In addition, bitcoin or stocks or many other forms of investment, where to invest is freedom and based on each person's preferences, binding is meaningless when things don't violate the law and money is in our possession, we have the right to decide, I would be interested in investing in a government or bank digital currency only if they understand this principle of equality and freedom.

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.

If the matter is true and clear, bring crypto does indeed have a powerful influence on our lives what else in the pandemic situation and a lot of people who would like to learn to invest in this crypto, what else the bank's class would be, they would make a coin crypto and make control of their own coin, and I don't know if it would affect any other crypto Certain Banks I am less aware that this would have a better effect on crypto with the economic climate sweeping across the country for the better and that what the central bank does leads to crypto's progress and greater progress

This pandemic may be one of the reasons why many countries want to issue their own CBDC. Getting digitalized has good reasons to avoid this kind of condition in the future. And it also fits the development of technology.
And moreover, the government knows that many more people around the world are now also interested in cryptocurrency. And now, the government is trying to follow the development of technology based on digital currency although it is not similar to cryptocurrency, at least, it may use the technology of blockchain or other things similarly.
And I am wondering what is the impact directly to the cryptocurrency in the future since many more countries issue their CBDC.

It is the pandemic situation that pushes banks and any establishments to offer such a cashless payment option. I absolutely agree that it will be suitable this time and people are happy with that. Digital transformations are known already and this also leads people to know about cryptocurrency particularly Bitcoin that even drag them into investing it. But somehow, many were still in doubts about Bitcoin, and instead of moving into digitalization, they were still sticking to fiat money.

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.

I've heard about digital cryptocurrencies long before but it is still unclear did central banks of some countries really prepare full adoption of digital cryptocurrencies or they suppose to apply fiat money at the same time. Nevertheless those two assets are similar because both of them are centralized and operated by banks. So, probably, for an ordinary person that will be the same as using of standard card with PayPass or like that.

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.

Digital currencies have been talked about and widely used over the past years. There are virtual currencies and cryptocurrencies which fall into the category of digital currency. Virtual currencies are used specifically in a certain group, organization, or community. It has no real value outside the community it is being used to. Meanwhile, cryptocurrencies are digital currency that is acceptable in the majority part of the world. One best example is bitcoin.

I think the government is just taking advantage of the opportunity because a lot of people now are engaging with digital payments and transactions. This is one of the best ways to manage more people's accounts and widen their scope. If the central banks will slowly get into digital currency, surely there will be people who will patronize which will result in more money and more funds for them. Soon enough, they can manipulate the market flow and possibly be in control over people's identity and assets (because it is centralized, meaning it will require KYC for verification and prone to risk due to its custodial nature).

With the development of the digital sphere, banks understand that money can pass by them and something needs to be done, but there is still no exact confirmation of what will happen and how. On the example of China, we can see that the testing process is underway, but they also do not force this direction, since in order for everything to work as needed, a guarantee of performance and agreement with other countries is needed. You don't need to think that if one bank decides to work with crypto, then everyone will do it right away or it will be accepted by other countries. I believe that all this is not yet accurate and probably a lot of work is underway to resolve the problem in the financial sector.

Many more will follow this year and not just banks, but even companies are doing the same thing as this company.
The other companies who never even believed in Crypto are now starting to expand here as well. Maybe they already see its potential?

But even if they offered decentralization who is going to believe that? Unlike bitcoin which has its source code as open source a coin like that is going to have closed source code so even if they were smart enough to offer this at the beginning of the coin we know that once they have enough people using their useless coins they will change the rules just as what they do with fiat now.

Only people that do not understand the true nature of bitcoin are going to consider using those coins, but for people that do like us then it is obvious we are never going to touch those coins no matter what their promises are.

Banks have no intention of taking over the cryptocurrency market or creating their own cryptocurrency. They want to take advantage of blockchain technology and transfer their common central bank currencies to this technology and create their own digitalized currency, i.e. national stablecoins. Therefore, indeed, in the near future, most states will release their digitized central bank currencies and they will have almost nothing to do with cryptocurrency.

That's what you called the CBDC (Central Bank Digital Currency), so it is really tied up the actual assets of the bank. And it is already happening, like in China. And I believe, a lot of central banks are already into the exploration of CBDCs, because this will really help people move their assets much easier and maybe less expensive fees. So yes, they will form their own digital currencies but not cryptocurrencies. Remember they are banks, so this will still be centralized.

We all knew this was going to happen sooner or later, as they say “if you can’t beat them, join them” governments are realizing that bitcoin is not going to disappear on its own so they are going to release their own centralized currencies trying to deceive people by saying that bitcoin is too volatile and that instead they should use their currencies.

And quite honestly I know they will have a lot of success as people are simply going to believe them, but as long as their centralized currencies still have the same flaws as their fiat currency nothing will change in the great scheme of things as people like us will never adopt those awful currencies and will keep our bitcoin intact.

I doubt that they mean to issue cryptocurrencies. Digital currency is a completely different thing. The fact that the initiative comes from the Central Bank already tells us that it won't be a cryptocurrency, it won't be blockchain-based, won't be mined, and will most likely be fixed to assets. It looks to me more like an attempt to take control over the situation. The banks probably see the advantages of the crypto and feel threatened, so they came up with a supposed substitution, which, they hope, people will buy.

This is probably the case, because cryptocurrencies have been showing excellent results for several years now and are attracting more and more money. Banks are used to owning money and for them cryptocurrencies are a new niche that they definitely need to curb. However, there are a number of problems, for example, how to get the owners of cryptocurrencies to bring their cryptocurrencies to the bank? Maybe banks want to make their own cryptocurrencies? It seems to me that these issues are very important and banks are likely to influence the crypto market trying to take possession of all crypto assets.

It's just that the Chinese authorities have their own priorities in the field of blockchain and their own digital currency will be in the first place in any case, and it's strange to expect the Chinese authorities to promote bitcoin in the banking sector when there are their own developments in this area. However, this does not exclude the fact that if central banks in other countries are loyal to bitcoin, then the Central Bank of China may soften its position. But the main rate of everything and the most-favored-nation regime will still be on its own digital currency.

China was very smart to enter the world of cryptocurrencies, first they used the FUD, they took the opportunity to make a huge campaign in favor of their stablecoin, then they spoke well of Blockchain, which led to talking about Bitcoin, this was maintained while Facebook's Libra was launched, Well, China had a lot of panic, they affirmed that Facebook's Libra was going to be treated as a normal currency, also that it was identical to the stablecoin, what benefited them was when they defeated the pandemic in its first stage. From then on everything turned out excellent. China really admired that cunning in economic movements, they entered with Blockchain in a big way.

If the banks offer cryptocurrencies in China, it will be very well controlled and guarded, it is no wonder that the banks there migrate towards blockchain and cryptocurrencies.

What are you saying dude? China does have that kind of recognition or positiveness towards bitcoin as recently they have banned btc mining and they enforce up the use of their own digital fiat which is totally opposite on what you are claiming.

For banks then they dont like to get behind on whats the trend, not that they are accepting or integrating crypto but rather they would really be creating their own digital currency and of course that would be still talking about
centralization.

Always China and America which are very aggressive towards technological developments lately. However, related to digital currency, China is most
serious about launching their own digital currency. Which is still in the development stage right now. When talking about digital currencies, it is
really needed right now, especially with the COVID-19 pandemic which is still spreading today. Cashless transactions are required, to prevent
physical contact between the seller and the buyer. So the best solution is for each country to have their own digital currencies. But I am optimistic
that many countries will soon make their own digital currencies, If this is realized, it is very easy, fast and safe to make financial transactions with
digital currencies compared to transactions with paper money.

Impressive! Since 2014 China has been working on its digital currency. I see that the progress it has made in its vision of taking a step forward in the transformation of the Central Bank by launching the first centralized digital currency is very positive and that it is expected to be successful due to all the large-scale tests that are being carried out.

It is a new monetary resource that the citizens of the world will have once the digital currency takes effect.
For the Beijing Winter Olympics it could be a good launch and of interest to everyone.

As always, China mostly wants to be the first in case of innovations and mass adaptation regarding on technology. They had precautions about cryptocurrency and they know where are the bounderies that must be taken care of. They know that there's more potential on cryptocurrency for the near future and taking advantage on it is a great idea, also, their reference from its success as we all know that it is bitcoin.

Interesting. In the first place, they were saying bitcoin a tool for criminals and underground markets. They were saying bitcoin is backed by nothing and only valuable because of the demand in the markets. After a few, they were saying not interested in crypto currencies the technology they use, blockchain, can be useful for us. Now as a new step forward, they are going to get into digital currencies. However, don't forgot digital currencies are not crypto currencies. Crypto currencies can be the next step for them.

What I know about CBDC, is a digital representation of money that is a symbol of state sovereignty or sovereign currency issued by the central bank and is part of its monetary obligations. Second, even if CBDC is hype and followed by all countries, isn't the context different from crypto? what is the difference between physical and digital Fiat? Everything that is regulated by the central bank always deals with inflation, right? Crypto was created as part of the rejection of the current monetary system, right? Why do you need to be scared? Even at the beginning of Bitcoin, all countries also refused and until now it has survived. Don't worry too much about unnecessary.

While countries central banks is oppressing cryptocurrency by restricting country to transact with cryptocurrency especially bitcoin, as I heard in Nigeria and China government who order their banks not transact with cryptocurrency, so if world bank can adopt cryptocurrency how would all these countries that tagged crypto different source of bad names will act, see the only thing some government leaders don't know is that crypto will even contributes for their upgrade, if world banks endorsed cryptocurrency fully that means nothing certain countries that restrict their people can do via digital currency again.

If this CBDC turns out to be a huge success I'm pretty sure other country gonna jump in aswell and try to make their own CBDC to compete in international market.
Though what I'm afraid the most is if they have created their CBDC but going overboard for the sake of expanding their market and bans any existing crypto, could definitely harm the existing crypto market though might be just a little.

This plan has actually been reported a lot. In particular, in last February, the Indonesian Central Bank (BI) has given a statement regarding digital currency.
This particular concern is for my country, Indonesia, where BI is interested in making digital currency. currently based on the legality of Bitcoin in Indonesia, it is still prohibited from being used as a transaction tool. https://www.cnbcindonesia.com/tech/20210226065154-37-226265/bi-akan-terbitkan-rupiah-digital-3-model-uang-digital-resmi

It's good that they are developing their own CBDCs this means that there will be less paper fiat circulating which can help alleviate inflation because there is really no money involved in the transaction, just a number on the screen and you can buy what you need. The only problem that I can see with this one is that when they enforce the usage of CBDC is that they will try to suppress other digital currencies like bitcoin, ethereum and such, and that not everyone is digitally literate when it comes to this and not everyone has their own mobile devices to serve as a wallet for their CBDC.

China is developing their digital Yuan for very long time and many other countries already created their CBDC and India also maybe trying to do the same when they mention that they are nit encouraging private currencies. But its not an actual cryptocurrency and its not much different from the digital fiat money then why these governments are trying to create new to hide their old fault system is doing the worse.

Central banks should really invest their time and efforts to get an upgrade within the Financial Technology industry. Having a digitized platform is one of the best things that a bank can provide because it lessens the hassle that some people need to go through from interacting ATM's and getting in line in a bank. It would also improve our quality of life by providing cashless transactions because that would mean that they studied it and would like to try it as an alternative from paying with cash.

It could also act as a beacon in which that would mean that this facilities can strive better than before and having to digitized their platforms is a great way to start promoting their development.

This is not to say that banks now do not know how cryptocurrency works. They just don't need her. The banking system works on completely different principles.
Their digitized central bank currencies, that is, national stablecoins, will differ from their non-cash currencies only in that they will operate on the basis of blockchain technology. In all other respects, it will be the same currency of states. Of course, such a digitized currency will be favorably distinguished by its improved capabilities and therefore there is no doubt that in the near future almost all states will have their own digitized central bank currencies.

Digital currency and cryptocurrency are not the same things, central banks will never accept cryptocurrency, the government won't ever accept bitcoin because it is not centralized so they cannot get something on it or gets benefit from it. Nowadays some countries are now planning on creating their digital currency, well that is also good for them we need that in our own country.

Unfortunately, I don't quite agree with you.  Even though the central bank makes a digital version of currency it is not as meaningful as the crypto that we generally use.  And it is still centralized, meaning that its value could also be eroded by inflation.  Whereas Bitcoin is one of the inventions that is a solution to criticism of the current monetary economic system where the central bank can print money 'arbitrarily' at any time and regardless of the amount.

and fortunately all of us who have already been involved in getting to know the digital crypto system, and that will make it easier for us to face the growth of the digital economy in the future. we will gladly contribute if individual countries really want to create their own crypto. and of course economic development is the foundation of today's digital era. we are always ready for what will be faced in the future when it comes to digital cryptocurrency.

And they will not get far with that way of thinking! They are not doing anything new, as you are saying they are digitalizing fiat, but fundamentals will stay the same... that will not change its centralized nature! So it will be the same thing, just in the new suit!
Anyway, I think they are late for the party! At first, they were laughing...now they are in panic and they are trying to find a way to stay competitive... in my opinion banks are losing this race, the question is just when we will see their end!

I think the central banks want to change their paper money into digital to follow the technology. They realize that the raw materials to make paper money are not easy to get, making them think about how to solve the problem. If they decide to use digital currencies, that can reduce their expenses to print the paper money, and they can distribute the money into the new wallet to their people. But that will be different from the cryptocurrency, which they still have control for the digital currencies that distribute to people in their country. China is one of the countries that want to do this because China has a dream to be the leader among the other countries.

That would mean it's still the same thing, the fiat system which makes up this economic crash will still exist despite how unreliable the system is. The government can still mint more of it, freeze accounts and stop transactions.

I'm curious what will happen after the Olympics in China and they tested their CBDC coins. If they are going to allow anyone to use the app then it's free for all not just for the Chinese?

AFAIK, this CBDC from China was done a long time ago and it failed miserably, I might be remembering something different. CBDC in my opinion, if it was introduced in a good way into the public, I think that it can have a potential to be adopted but seeing that some of them are being forced in the throat of the consumers, I don't think that it won't last long before the magic that they put under their CBDC will be lost in the process. If China wants to make it successful, a sudden jump to big cities for experiment is not the best option, maybe trying it in smaller cities or provinces like how they are practicing with a Surveillance state in the provinces that is full of Uyghurs.

Central banks around the world want to get digital currency governments have realized that digital currency is very profitable and it is not under the control of the government. Central bank digital currencies can facilitate cross border transactions promote financial inclusion and provide stability to the payment system  and in times of economic uncertainty people can withdraw their funds from commercial banks accelerating a bank run. That's why I want to be in control of myself.

What Central Bank is doing is digitizing Fiat, not creating cryptocurrency. This means that they still have full control over the circulation of the country's digital currency, so this is centralized.
This is also what is being implemented in my country to digitize the local currency because currently transactions are done digitally and online, the government felt the need to do this.

I also think that CBDC will be an indispensable part of this market, I learned about these concepts quite early when the market was in 2017. And the project that I was interested in was Cyphereum. But after a long time, CPH is only trading as IOU, and all the data that you are mentioning I think belongs to that project.

It's just the old fiat currency taking into a new form. You know, the world changes along with the rising of new technological innovations. The old way of doing fiat transaction is so obsolete that it has to evolve and adapt to the times. The internet has gone mainstream, payment systems are shifting online, globalization makes buying and selling of goods and services intercontinental, and so on and so forth. The world has gone digital and fiat is a little bit left behind. Bills and metal coins are things of the past.

But all this does not mean fiat has essentially improved.

We are already heading in that direction. That's why, there's no doubt banking institutions are already in this game. I am sure, a lot of them are already dedicating specific division to develop their own digital cryptocurrencies. A matter of time before they fully introduced it to their clients. In the next few years, we will know what they are cooking in terms of digital currencies.

The pandemic had made the government push the digital currencies harder to the people, they were even burning banknotes. Once the adoption of digital currencies is just as easy as installing an app on the phone, users will also have access to cryptocurrencies and then this is going to be useful for its adoption. Its not easy for undeveloped countries to release digital currencies though.

The people of the world can wake up as much as they want, but nothing will change the fact that state currencies based on the blockchain are the reality of our near future and are one of the elements of the fiat money system. Just do not go to extremes and think that this will replace the entire monetary system. Undoubtedly, there will be some costs in the implementation process, but let's hope that the state authorities and ordinary citizens will eventually find acceptable options for the system, which will take into account both the state interests and the rights of citizens.

Well said, most of the countries in the name of digital growth have encouraged the usage of digital currencies. This means very small percentage of people were aware of the credit/debit Card usage and now through continuous promotion its usage has increased alot. Apart from this development more number of government banking services have begun to make use of the blockchain technology and very few around the world are supporting cryptocurrency development and usage.

Central banks will probably follow something similar like Binance exchange is doing, they will create their own centralized chains and centralized currencies.
Then they will be able to rollback, change, freeze anything they want or ban anyone who they don't like, but they will say that fees are cheaper than for Bitcoin
China is doing the same thing with their digital coin now and they even have special hardware wallets for that, other countries will follow later.
People should finally wake up before it's too late and understand the power of Bitcoin.

the fear has been among banks for a couple of years now, this is not news. they have been thinking and planning on how they can deal with the out-of-control growth of bitcoin that has taken the world by surprise. their first reaction was just like what you'd expect from the old timers, they tried to copy bitcoin. they even got involved with centralized shitcoins and tried working through them. all of their plans have been failing so far. that is why some of them PayPal, Visa, JPMorgan,... have been changing strategies and have been trying to adopt bitcoin. so far PayPal has given up and adopted bitcoin for good. we have to see who's next.

It's true, their is more rumor toward the action of china economic action. Till now, the propaganda was not proved.But their is myth regarding this one. After the cold war, the country begins to increase their assets. It's just to became a economic stroger equal to the United Status. The reason for acceptance of United States words is, they are developed country.And they can help financial for other country.

I doubt any aside from the most hardcore supporters of china will be thrilled by its design choices.


China's central bank issued digital currency

• Is designed to decrease in value over time. It is claimed this will encourage end users to spend and use it.
• Expires & becomes worthless if it is not spend within a few weeks

Around 7 years ago there were rumors of china increasing its gold reserves in preparation to back its native yuan currency in gold.

A solid and proven method to encourage adoption of the yuan as an international reserve currency. Increasing china's power and influence.

I can't see how anyone would want to utilize a digital currency under the oppressive and restrictive terms chinese central banks are creating.

Such kind of coin will definitely be centralized and will have the same issues that centralized coins have like manipulation etc just like ripple and centralized coins. Despite that the government is going to make it mandatory for use but I'm believing the force won't stop the use of bitcoin because bitcoin is freedom and can't be manipulated.

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