Venezuela built their CBDC using existing blockchain technology as a cost saving measure.
It is possible other nations will do the same. Rather than build their own proprietary CBDC systems from the ground up at a ceiling cost of billions. They could opt to fork bitcoin or another token the way bitcoin cash did. With the main difference being state owned and operated miners and nodes.
Updating and modernizing banking industry infrastructure and technology is no trivial task. The last major modernization of the banking industry was accompanied by some of the largest electronic bank heist attempts in history. Some insiders tasked with modernizing banking tried to steal funds, thinking they wouldn't be caught. Some may have even gotten away with it.
There are reasons banks do not update their infrastructure and systems unless they're forced to. That could be one major advantage crypto will retain over banks. The capacity to rapidly deploy and roll out new technologies. While banks with legacy systems could by nature be extremely difficult to modernize and maintain.
Topic: Difference btw CBDC & BTC (Simple and short explanation) - page 2. (Read 205 times)
Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!
I think they will be even worse than stable coins.
You can use usdt in any dex. You can sent it using basically any blockchain (even bitcoin blockchain until few time ago usdt was very common).
This means that I can send usdt (or any other stable coin) permitionless, borderless to anyone in the world. I know they are ahleer to freeze some addresses, but cbdc might be even worse.
I belive cdbc will ask for kyc when generating a new wallet, for example. I doubt I will be able to send cbdc to people in other countries and convert between currencies for free, without paying taxes and other fees for example.
Bitcoin, on the other hand, plays a dual role as an independent currency that combines the traditional characteristics of well-known currencies with the new features of blockchain technology, in addition to being an independent payment system that works according to the mechanisms of the blockchain that provides sufficient guarantees.
Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!
I think they will be even worse than stable coins.
You can use usdt in any dex. You can sent it using basically any blockchain (even bitcoin blockchain until few time ago usdt was very common).
This means that I can send usdt (or any other stable coin) permitionless, borderless to anyone in the world. I know they are ahleer to freeze some addresses, but cbdc might be even worse.
I belive cdbc will ask for kyc when generating a new wallet, for example. I doubt I will be able to send cbdc to people in other countries and convert between currencies for free, without paying taxes and other fees for example.
Central Bank Digital Currency competes with stable coins, not with Bitcoin. I've even seen the requirement to be able to charge negative interest for owning centralized digital fiat. You can't make this up!
It is always good to point out the differences of cdbc and bitcoin.
Cbdc are just fiat. I think there will be very little innovation , and it will be mostly a new payment method.
Let's see how it will be implemented, but I doubt they are going to be as borderless as bitcoin and other cryptocurrencies. There will be a lot of kyc and similar to create a new wallet and transfer money.
I Awdoubt they will even use blockchain w
Cbdc are just fiat. I think there will be very little innovation , and it will be mostly a new payment method.
Let's see how it will be implemented, but I doubt they are going to be as borderless as bitcoin and other cryptocurrencies. There will be a lot of kyc and similar to create a new wallet and transfer money.
I Awdoubt they will even use blockchain w
Here is a very simple and short difference between BTC and CBDC, and why both are not comparable in any way.
Source @bitcoin_insights
Source @bitcoin_insights
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