Welcome to Episode 7 of Trend Talk!
On last week’s episode we talked about expectations for 2023!
This week, we will talk about CBDC (Central Bank Digital Currency).
Trend Talk Episode 7: Central Bank Digital Currency
Central Bank Digital Currency (CBDC)
A Central Bank Digital Currency (CBDC) is basically a digital version of a country’s fiat currency. They/It uses advantages of the blockchain and ledger technology. The government is saying that it is beneficial to a country as it has the simplest financial systems while protecting them from other digital currencies or assets.
We first had physical money like “Cash” or “coins”, which led to a digital era of credit cards and debit cards. Now you can tap to pay through your phone. CBDC or Central Bank Digital Currencies are basically the upgraded version of the credit card and cash, the pure blockchain/digital version of government-controlled money.
CBDC will be backed by the government whereas crypto is backed by supply and demand.
Although this is an opinion and blog article, I am personally stating my own opinion. Please do your own research and look at CBDC.
CBDC is centralized which gives the government control over the supply/money. This doesn’t align with decentralization nor represents what crypto is traditionally supposed to be and used for. These transactions will not be anonymous, resulting in visible transactions which can be linked to your spendings and who you are.
Banks have been researching stablecoins and some have already deployed their own stablecoins.
The digital currency of China’s YUAN has already been implemented in addition to the Bahamas. The National Bank of Australia has just deployed their stablecoin on January 19, 2023.
Sweden is currently running their trial of a digital currency. Many countries have been working with stablecoin and other Crypto entities to help with payments and access to locals in different regions all over the world. The EU has also been looking at the digital euro.
There are many discussing CBDC and the issues at hand, some are for while some are against. As crypto has been introduced to the world and many are adopting crypto, CBDC won’t cease to exist. However, individuals and citizens of each country must look in-depth at each CBDC. We must look in–depth to how the governments will operate and regulate CBDC and crypto.
***This is not financial advice~ these are opinions! DYOR (Do Your Own Research)!***
