Stablecoins or CBDCs? - page 4. | Bitcointalksearch.org

stepwilli

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Quote from: Abiky on April 08, 2022, 05:32:18 PM

With the advent of Tether (USDT), the stablecoin industry has advanced at a very fast pace. There are now many stablecoins on the market aiming to bring the stability of traditional Fiat currencies with the security and reliability of crypto/Blockchain tech. Traders can use stablecoins as an alternative to existing Fiat without having to cash out directly to a bank. To say the least, stablecoins are the new digital Fiat system where companies hold all of the power (instead of the government). Yet, central banks have announced their intentions to launch CBDCs (Central Bank Digital Currencies) of their own. If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency? Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

Well, I guess the government just wants to have something that belongs to them entirely, because stable coins are being run by individuals and not the directly by the government, so they can’t make the full decision on what happens with these stable coins.

But you still have a point, most of these stable coins are centralized, and that includes USDT, so the government should have just backed them rather creating CBDC. Even CBDC are still fiat, I do wonder the need for having all these things, totally unnecessary to me. But between the two and If I’m to choose, I am going to choose Stable coins, especially the decentralized ones like DAI.

SirLancelot

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Quote from: tvplus006 on April 15, 2022, 03:11:06 PM

Stablecoins, as well as other cryptocurrencies, are subject to price manipulation. This is clearly noticeable with the recent fuss over the Waves USDN stablecoin, which has lost 40% of its value in price. The price of the GBR fell by about the same amount in 1992, and accordingly, if this happens again now, then the cost of CBDC will accordingly fall by the same percentage. So nothing is perfect as long as the possibility of manipulation remains.

CBDC value cannot be manipulated, saying this is just like you saying that forex can he manipulated when that’s not the case. The cryptocurrency market can he be manipulated and that’s because of how they are decentralized and totally out of the control of the government so the community is what controls it, when people are investing more money in it, the value will be increasing. In the case of the CBDC it is pegged with fiat so it is only the government that can decide the value, they can either inflate or deflate it if whenever they want.

Emitdama

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They are almost the same right? But the only difference is that CBDCs are new, it was like we are comparing an old altcoin to the new altcoin but people will have more trust on the old one so no, stablecoins will not die but if there is one that is going to die that will be the CBDC.

There are different kinds of stable coins to choose from, not just about the name but there is also a decentralized based stable coin. This is one of the things why people will stick on the old stable coins. And is that possible to backed something that they don't own? Maybe it isn't, that is why they are planning to create their own currency in the form of CBDCs, where they can have a full control.

tvplus006

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Stablecoins, as well as other cryptocurrencies, are subject to price manipulation. This is clearly noticeable with the recent fuss over the Waves USDN stablecoin, which has lost 40% of its value in price. The price of the GBR fell by about the same amount in 1992, and accordingly, if this happens again now, then the cost of CBDC will accordingly fall by the same percentage. So nothing is perfect as long as the possibility of manipulation remains.

Xal0lex

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If we are talking about centralized steblecoins backed by dollars, I am not sure that all the power belongs to the companies. All the collateral is on a bank deposit, and if the bank decides to freeze these assets, there is nothing the company can do. Another thing is if we are talking about decentralized stablcoins like DAI and also algorithmic stablcoins which are pegged to dollar but have bitcoin or altcoin reserve, like UST from Terra.

I'm not sure that CBDCs will completely replace stabelcoins. Maybe the binding will change, which used to be fiat based and now will be CBDC based. Although many stablcoins are tied to the dollar and we won't see a digital dollar anytime soon.

kryptqnick

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I guess the govs are not okay with stablecoins being under someone else's control and not truly being backed by fiat or anything of value on the required level, so they want to do it their way. But internationally, I think there's more trust to stable coins because they are not controlled by governments. CBDCs work for local markets largely, IMO, whereas CBDCs are something used internationally. So even they, IMO, aren't competing against one another, even though they have some similarities.

DOH!

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Quote from: Abiky on April 08, 2022, 05:32:18 PM

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs?

As far as I understand, CBDC is a tool for government to control the market in the way that it exists which will create friction and pressure on pure stablecoins like USDT, etc., so it is no coincidence that the release The advent of more scalable and decentralized stablecoins has been warmly supported in recent times. CBDC is not compatible with Defi because it cannot. The purpose of applying CBDC is to trigger the transition from correspondent banks, creating a spiral for them to come to the central bank = easy control. One more reason that decentralization will be the next future.
So, See how the market reacts to CBDC and it's almost ready!

wxa7115

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Quote from: Abiky on April 08, 2022, 05:32:18 PM

With the advent of Tether (USDT), the stablecoin industry has advanced at a very fast pace. There are now many stablecoins on the market aiming to bring the stability of traditional Fiat currencies with the security and reliability of crypto/Blockchain tech. Traders can use stablecoins as an alternative to existing Fiat without having to cash out directly to a bank. To say the least, stablecoins are the new digital Fiat system where companies hold all of the power (instead of the government). Yet, central banks have announced their intentions to launch CBDCs (Central Bank Digital Currencies) of their own. If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency? Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks.

Well we know that more than anything what government want is power, and that power can only be obtained by controlling more and more people, so even if stable coins already exist backing a stable coin will be the same as recognizing that stable coin as their new fiat, which I think it will never happen.

But then what would happen with stable coins issued by private companies? Personally I think there will be a very strong effort by the governments to eliminate them, after all they are owned by centralized exchanges which can be easily regulated by them under the threat of imprison their most important board members, so I do no think it would be a problem for governments to eliminate them.

jokers10

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Quote from: Abiky on April 15, 2022, 11:10:26 AM

Quote from: jokers10 on April 14, 2022, 06:44:47 AM

And I'd say that it is a huge difference: CBDC is fiat by itself and stablecoin is a commodity which is promised to be exchanged for fiat. Different levels of reliability: if I don't trust fiat I don't trust surrogate of fiat even more. Less a month ago Cashio Dollar become zero and it supposed to be stable... If dollar one day become zero all stablecoins connected to it will do the same, but bankruptcy of Cashio Dollar didn't lead to bankruptcy of USD.

CBDCs will have more credibility than stablecoins, simply because they're backed by the full faith and credit of the government. I doubt centralized stablecoins will survive as people will prefer CBDCs instead. Only decentralized stablecoins will stand against CBDCs as they don't have any central operator (issuer) behind them. They will prove to be an excellent alternative for those looking to escape government surveillance. I'd focus more on traditional cryptocurrencies such as Bitcoin or Ethereum since they're not directly tied to Fiat. As long as decentralization wins, there should be nothing to worry about. Just my thoughts Grin

Cashio Dollar I mentioned is a kind of decentralized decisions but that didn't prevents its failure. There reasons of failure will be just different for different types of stable coins but I suppose that sooner or later all existing stable coins will disappear in contradistinction to bitcoin.

marcous

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Quote from: Moeda on April 15, 2022, 12:09:14 PM

I see government financial services authorities getting jealous of the success of private companies specifically in the field of blockchain technology.
Basically the financial services authorities have rejected the existence of crypto on the grounds of a bubble. But it didn't work. In the end they themselves also plunged into the world of blockchain.
In this case I am not talking about the success of the crypto stable, but rather about the fate of other stable coins. I'm just worried that their existence will complicate private companies.

Private companies also know that they will experience difficulties due to the presence of financial services authorities into the crypto space, but basically private companies also have safer ways and ways to maintain their products such as stablecoins.
So in this case I would still believe in stablecoins over CBDCs

Moeda

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Quote from: Abiky on April 08, 2022, 05:32:18 PM

With the advent of Tether (USDT), the stablecoin industry has advanced at a very fast pace. There are now many stablecoins on the market aiming to bring the stability of traditional Fiat currencies with the security and reliability of crypto/Blockchain tech. Traders can use stablecoins as an alternative to existing Fiat without having to cash out directly to a bank. To say the least, stablecoins are the new digital Fiat system where companies hold all of the power (instead of the government). Yet, central banks have announced their intentions to launch CBDCs (Central Bank Digital Currencies) of their own. If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency? Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks.

I see government financial services authorities getting jealous of the success of private companies specifically in the field of blockchain technology.
Basically the financial services authorities have rejected the existence of crypto on the grounds of a bubble. But it didn't work. In the end they themselves also plunged into the world of blockchain.
In this case I am not talking about the success of the crypto stable, but rather about the fate of other stable coins. I'm just worried that their existence will complicate private companies.

Abiky

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Quote from: jokers10 on April 14, 2022, 06:44:47 AM

And I'd say that it is a huge difference: CBDC is fiat by itself and stablecoin is a commodity which is promised to be exchanged for fiat. Different levels of reliability: if I don't trust fiat I don't trust surrogate of fiat even more. Less a month ago Cashio Dollar become zero and it supposed to be stable... If dollar one day become zero all stablecoins connected to it will do the same, but bankruptcy of Cashio Dollar didn't lead to bankruptcy of USD.

CBDCs will have more credibility than stablecoins, simply because they're backed by the full faith and credit of the government. I doubt centralized stablecoins will survive as people will prefer CBDCs instead. Only decentralized stablecoins will stand against CBDCs as they don't have any central operator (issuer) behind them. They will prove to be an excellent alternative for those looking to escape government surveillance. I'd focus more on traditional cryptocurrencies such as Bitcoin or Ethereum since they're not directly tied to Fiat. As long as decentralization wins, there should be nothing to worry about. Just my thoughts Grin

7788bitcoin

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I do not fully trust all the stable currencies in the cryptocurrency space but i will not use any Central Bank Digital Currencies because they control everything about the currency and have the opportunity to monitor them and even freeze my currency if they want to, we have not seen that kind of control from the stable currencies we have in circulation even though they are able to do those same activities. I am just curious to see how things develop in the future and then make my complete decision about these things.

Jaered

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I think I would go for the stablecoins. It's decentralized though there is an element of centralization. CBDCs are just too centralized for my taste and its not right

Yogee

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Quote from: Abiky on April 08, 2022, 05:32:18 PM

.... . If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency?

A Government using stable coins is like using another country's currency as your legal tender. It sends the message that they have a very weak financial system and I doubt any Government leader would like that to happen.

Quote

Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

The risk probably outweighs the "hassle-free" benefit. It would not take them that long to catch up with the technology. It could only take them a year or two from researching to testing before launching their own CBDC.

zasad@

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cbdc is a central bank token that cannot be a scam, although we call a scam any token that has an uncontrolled and unforeseen emission.
But I am also very interested in when the world regulators will begin to impose restrictions on stablecoins.
https://www.coingecko.com/en/categories/stablecoins
Apparently 188 billion is not the limit.

aprilnot

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if you look at stablecoins and cbdc, they are not much different, the only difference is that cbdc is managed by the government. but I'm fed up with regulations, so I prefer stablecoins over cbdc. if cbdc goes into the crypto industry, it's not just me who disagrees maybe everyone in the crypto community will be against it. crypto is decentralized, and centralized systems especially government-run ones have no place here.

jokers10

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Quote from: Abiky on April 13, 2022, 09:38:41 PM

Both stablecoins and CBDCs are basically the same thing. They're essentially a "digitized" version of Fiat. The only difference is that one is backed by the government and the other is backed by a company. I'm pretty sure centralized stablecoins will cease to exist in the future due to increasing government pressure. We'll be left with CBDCs acting as a replacement against existing stablecoins.
...

And I'd say that it is a huge difference: CBDC is fiat by itself and stablecoin is a commodity which is promised to be exchanged for fiat. Different levels of reliability: if I don't trust fiat I don't trust surrogate of fiat even more. Less a month ago Cashio Dollar become zero and it supposed to be stable... If dollar one day become zero all stablecoins connected to it will do the same, but bankruptcy of Cashio Dollar didn't lead to bankruptcy of USD.

Abiky

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Quote from: uneng on April 11, 2022, 11:45:55 PM

CBDC of US will be probably the same as stablecoin, with the difference one is centralized by a government and the other is centralized by a company (which is still regulated by the government anyway), so they are pretty similar. Maybe CBDCs will be more precise at the 1:1 ratio conversion than stablecoins, but I'm not sure yet.

Between the two options I prefer to pick the less bureaucratic one. I expect CBDCs to be harder to deal with due to regulations and limitations imposed by each local government, so it's likely I will keep with stablecoins, but if CBDCs are going to be user friendly currencies I see no problem in adopting them as well.

Both stablecoins and CBDCs are basically the same thing. They're essentially a "digitized" version of Fiat. The only difference is that one is backed by the government and the other is backed by a company. I'm pretty sure centralized stablecoins will cease to exist in the future due to increasing government pressure. We'll be left with CBDCs acting as a replacement against existing stablecoins.

What we're experiencing now is just a "prototype" of what's coming in the future. After all, stablecoins are experimental grounds for CBDCs. What matters is that crypto stays decentralized in order to give people an "escape route" from the corrupt monetary system controlled by central banks and governments alike. While Fiat won't be going anywhere soon, decentralized cryptocurrencies will become a major contender against it. Who knows what the future will look like with both CBDCs and traditional cryptocurrencies in play? Just my thoughts Grin

barbara44

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I know I will be hated for this but 100% definitely CBDC. If I am going to trust my money in basically fiat form, then I would rather do that with government and not some company. Many people here trust USDT but I do not trust them, who is tether? Who is bitfinex? Why would I trust them? They are literally nobody that we trusted tens of billions of dollars, it is around 100 billion or so nowadays isn't it? Makes no sense to me at all.

I believe that if you do this with governments then it should be better, one way or another they will pay you, maybe it won't be as easy, or maybe it will hurt the economy but they will find a way to pay you. Companies could be just closed and say they are hacked or bankrupted or whatever and be gone.

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