Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Karl_BC on November 17, 2020, 12:40:57 PM
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(https://i.imgur.com/9KVYiGn.jpg)
In the past 11 years since the birth of Bitcoin, cryptocurrencies have gained immense momentum and popularity as they are decentralized and are rather free from regulation. This makes them a threat to central banks - defined on Investopedia as “a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations”.
As central banks are unable to control the influence and growth of cryptocurrencies, the latest buzz revolves around them wanting to create their own digital currencies or cryptocurrencies. While some governments are contemplating about it, others have gone ahead to start working on it.
What is CBDC?
A central bank digital currency, or CBDC, is said to represent a country or a region’s official fiat currency in a digital form, through the use of digital tokens and blockchain technology. Whereas cryptocurrencies like Bitcoin and Ethereum are decentralized, a CBDC is centralized. This means that a country or region’s monetary institution will be regulating it.
Interestingly enough, according to the bank for International Settlements (BIS), the idea of CBDCs has been around before Bitcoin even started.
We’re talking more than 20 years!
Why do central banks want to create CBDCs?
The main reason is financial inclusion for everyone, especially those who are unbanked, such as those who live in rural areas who are unable to access banks or ATMs. CBDCs can be made available to anyone with a smartphone - similar to the availability of cryptocurrencies.
Another factor to look at for why central banks want to create their own digital currency is Facebook and its Libra token. While the Libra token isn’t released yet, Facebook’s announcement sent shockwaves amongst policy makers as they have 2.6 billion active users - all of whom could become Libra users. Compared to Bitcoin’s global adoption rate of less than 5%, the volume of Facebook’s user base sure is something that could create a big shift.
Opportunities and risks of CBDCs
With multiple countries around the world either contemplating or working on CBDCs, there have been various discussions about the opportunities and risks that it brings. The BIS recently worked with 7 major central banks around the world to create a report that outline the foundational principles and core features of CBDCs. The report was released on October 9, 2020.
In their summary presentation video on YouTube, the BIS shared the following key opportunities and risks of CBDCs:
(https://i.imgur.com/urIeQZK.jpg)
CBDC VS Cryptocurrency
And just so you know, while the concept of CBDC may sound similar to cryptocurrency because they are both digital assets, CBDC actually goes against what cryptocurrency is all about.
* Centralized VS decentralized
CBDC is centralized while cryptocurrency is decentralized. CBDC will be regulated by a country or region’s monetary institution, also known as one central network. Cryptocurrency, on the other hand, is controlled by the many distributed nodes who gain rewards for maintaining the network.
* Privacy
Blockchain News shared that CBDC is said to possibly be less respectful of your privacy and data because “central banks are infused to regulatory bodies”. Compared to crypto where it’s peer-to-peer and you get to decide how much information you want to share, this is certainly something to consider as you don’t want to become a target for financial criminals.
* Security
While there are weaknesses in the blockchain, cryptocurrency has somewhat managed security concerns. CBDCs “are likely to be cyber-attacked by rival states who now have to contend with one centralized point of failure for financially motivated hackers to attack”, as reported by Blockchain News.
So… will central banks create their own digital currencies?
Right now, it seems like things are up in the air. Benoît Cœuré, Head of BIS Innovation Hub, has shared that while creating a CBDC is not decided yet, the report they did with the 7 major central banks -“Central bank digital currencies: foundational principles and core features” - is a major step forward.
Any CBDCs that are launched will be expected to keep to:
1. “Do no harm” - CBDCs should deliver monetary and financial stability and not hamper central banks in delivering on their mandates.
2. Co-exist with cash, bank notes and other types of money to enable a diverse, innovative and flexible financial ecosystem.
3. Encourage innovation and efficiency, including actively involving the private sector.
BIS and the world’s major central banks want to build on the excitement and commitment that is being seen around CBDCs right now. However, it has been noted that many policy dimensions and foundations need to be explored further before central banks release any CBDCs.
What are your thoughts about the central banks’ digital currency? Will it be a threat to Bitcoin or could it give Bitcoin a boost?
Regards,
Karl
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As we can see now that some Central Banks are already doing it, like China, they have the Digital Yaun while some others are also considering to make their own too, thats why I believe that sooner or later most countries Central Bank has already have it. CBDC is just a digital version of the countries local currency so clearly it was back by fiat and of course, it's centralized.
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I think that with the Digital Yuan project that China has created, it will soon be followed by other countries' Central Banks. Because this crypto is very fast spreading freely. So I am sure that soon there will be other projects such as Digital Yuan from various countries.
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Some central banks have already created their own cryptocurrencies, I don't know exactly for what purposes, but I think it was all for a reason, but in general all banks understand that cryptocurrencies are developing very quickly and most importantly successfully, and a lot of banks also want to develop in the cryptocurrency sphere, I think that gradually more and more different banks will create their own cryptocurrencies and this will help the cryptocurrency sphere to develop faster.
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Banks in each country will be able to create their own cryptocurrency. In most countries this is possible. Banks in many countries can do this. There are many more possibilities. As China Digital Yaun has already done. In the future, banks in most countries may intensify this. There are possibilities for the future. Soon we will see fiat in most countries. Digital yaun is a new invention in China. The idea is to help take cryptocurrency one step further.
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Any blockchain or digital currency would be good for the industry overall. Most CBDCs are likely to be more restrictive initially but will evolve over time. CBDC that’s more open, more free, has less restrictions than Bitcoin, and is faster and cheaper to use, be would threaten Bitcoin.
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There isn't any reason why they shouldn't but most Economies will see this as redundancy since they all still cling heavily on their Fiat and traditional banking and currency systems. Most will prefer to adopt the top cryptocurrencies already available in the market with most likely to adopt bitcoin for obvious reasons. However, the benefits and gains of owning their own cryptocurrency could be massive as they will control and regulate these cryptocurrencies if created and also decide how these cryptocurrencies get distributed, issued and utilized.
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actually, there is already a cryptocurrency created by Banks that is Ripple...
many Banks have said they will work with Ripple in the next few years. currently, the market capitalization of Ripple is very large so central Banks don't need to create new cryptocurrencies anymore.
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If central banks create their own tokens in the crypto currency sphere; it will only be used by government agencies, agents and parastatals. The blockchain and crypto currency is here for decentralization purposes; anything from the government is centralized.
This is one reason why the government has to only try and regulate and counter frauds; but leave the space decentralized.
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actually, there is already a cryptocurrency created by Banks that is Ripple...
many Banks have said they will work with Ripple in the next few years. currently, the market capitalization of Ripple is very large so central Banks don't need to create new cryptocurrencies anymore.
The banks use the ripple network to organize fast and cheap transactions instead of the outdated SWIFT system. This is a little different from having to have your own digitalized currency. Now more than 80 percent of all states have already started working on the creation of national stable coins of central banks, because the benefits of their practical application are obvious. Most likely, in the near future, almost all states will have their own digitized currencies.
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If central banks create their own tokens in the crypto currency sphere; it will only be used by government agencies, agents and parastatals. The blockchain and crypto currency is here for decentralization purposes; anything from the government is centralized.
This is one reason why the government has to only try and regulate and counter frauds; but leave the space decentralized.
Of course, almost all states will soon create their own national digitalized central bank currencies. The advantages of digitized currencies over conventional ones are now obvious and beyond doubt. Like the usual currency of states, their digital counterparts will be actively used by citizens of these states. There is no doubt about that.
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Aren't they currently aggressively creating CBDC? Or just a few countries? This is actually a good move. On the other hand, we can see how the world views cryptocurrency, becoming something that is easier. Personally, I will support it as long as there is a high increase in crypto enthusiasm because of this
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State-backed digital money or simply called as CBDC are going to be getting more popular in the coming years and this will surely be supplementing (not yet totally replacing) the fiat money of any country having it. This is going to be mainly utilized in big country-to-country transactions and those in global commerce, with the assumptions that this can be kicking the use of USA Dollar which if will be the in thing can be so catastrophic to the economy of the USA as this can be time when the side effects of always printing money will be manifested with hyperinflation. USA has to be careful now because this will really happen.
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Some central banks have already created their own cryptocurrencies, I don't know exactly for what purposes, but I think it was all for a reason, but in general all banks understand that cryptocurrencies are developing very quickly and most importantly successfully, and a lot of banks also want to develop in the cryptocurrency sphere, I think that gradually more and more different banks will create their own cryptocurrencies and this will help the cryptocurrency sphere to develop faster.
Banks will not develop cryptocurrency. It is their own digitalized central bank currency that is ideal for them. It should dramatically improve the efficiency of conventional currencies, but the digitalized national currency is not a cryptocurrency. It often also works using blockchain technology, but it cannot be classified as a cryptocurrency due to completely different, non-decentralized principles of operation.
Therefore, states will create their own stable coins of central banks, but they will also fully regulate their circulation themselves.
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yeah, I think central bank will create their own digital currencies.
Digital currency is the future currency, mnay people believed digital currency will come and will replace traditional technology and fiat money.
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The central banks of many states are already doing this to varying degrees. Some are just conducting research on this possibility and necessity, others are already actively creating their own CBDCs, and others are already on the verge of testing and releasing them. This process has been going on since about 2019, however it is quite long. Some states are in a hurry with their release, others are not. However, I think that soon almost all states will have their own digitized currencies, because their effectiveness in comparison with non-cash payments of states is obvious.
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We have been hearing about CBDC since 2020 but currently only a few countries are considering and releasing it. China has an e-CNY but it is not really well known and has not been recognized or used by other countries. CBDC still has a long way to go to become as popular as crypto or fiat.
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Anyone who wants to issue their cryptocurrency in the banking system will have a very difficult time, it's not all built up so quickly and you need popularity for this.
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Anyone who wants to issue their cryptocurrency in the banking system will have a very difficult time, it's not all built up so quickly and you need popularity for this.
Indeed, it seems that it will be difficult if moreover each country has its own currency, of course they also have their own payment methods which are arguably more popular and often used. Unless a country really needs a new technological breakthrough that can have a good impact in terms of fast and no-limit transactions, then I think blockchain can be considered.
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Yes I think in the future central banks will create their own digital currency. Because most of the people are inclined towards digital currency. The coming era is digital age and crypto is digital currency. In the coming time digital currency will rule the whole world.
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They are trying to create their own CBDC, their digital money. although the progress is still not clear and still not seen the success, they are now still preparing for it. But unfortunately, their prupose is to compete and take the place of cyrptocurrency. So, this may be good and bad at one time.
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The government has regulations to systematically regulate the country's finances, because of that CBDC was created to facilitate the traditional transaction systems that exist today and want to compete with cryptocurrencies.
The government knows what they are doing for the benefit of the country, we can see how much USDT is printed and guaranteed, if a CBSC is created, they need to consider another crypto asset that already exists, because it has a better value which is Blockchain technology.
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The government has regulations to systematically regulate the country's finances, because of that CBDC was created to facilitate the traditional transaction systems that exist today and want to compete with cryptocurrencies.
The government knows what they are doing for the benefit of the country, we can see how much USDT is printed and guaranteed, if a CBSC is created, they need to consider another crypto asset that already exists, because it has a better value which is Blockchain technology.
Yeah, block chain technology is good.
I think central bank and govt should improve at crypto currency.
CBDC is one of their crypto.
Hopefully we will see several of them being created.
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I think that with the Digital Yuan project that China has created, it will soon be followed by other countries' Central Banks. Because this crypto is very fast spreading freely. So I am sure that soon there will be other projects such as Digital Yuan from various countries.
Yeah digital yuan has been created by China, then we all know about CBDC, has been created by west country.
I think we will see many digital currency that has been created by many countries.
It's good for crypto world.
Hopefully it will have good effect for crypto market.
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I don't think this will have a very good effect on the crypto market.In fact, it will be another new form of money with closed blockchains for its own cross-border transfers and the ability to monitor our operations and control the payment of taxes.
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I don't think this will have a very good effect on the crypto market.In fact, it will be another new form of money with closed blockchains for its own cross-border transfers and the ability to monitor our operations and control the payment of taxes.
I think it will have good effect for crypto market ,if central bank create their own digital currency.
Digital currency is the future currency.
I believe we will see good competition there.
that's my opinion.
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I don't believe central bank will create crypto.
But anything can happen at crypto currency.
I think we will see many crypto has been created by many big companies at the coming future, but maybe not banks.
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I don't believe central bank will create crypto.
But anything can happen at crypto currency.
I think we will see many crypto has been created by many big companies at the coming future, but maybe not banks.
Governments can create guaranteed digital currencies based on the paper currency they have, it's like crypto assets backed up by gold, nothing is impossible.
the situation is almost the same as the use of Debitcard, Visa and Mastercard, if the CBDC is successfully created then Crypto can be entered as implemented by Paypal
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Absolutely right. It's just a form of money.This does not change anything for the entire crypto-currency market.
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I don't believe central bank will create crypto.
But anything can happen at crypto currency.
I think we will see many crypto has been created by many big companies at the coming future, but maybe not banks.
Banks, of course, will not create cryptocurrency. They will create CBDC, that is, their own digitized fiat, which can hardly be classified as a cryptocurrency. CBDC will be the same fiat, only in digitized form, and it will be an improved alternative to their current cashless payments. In this way, states use the new opportunities provided by blockchain technology. Soon we should see the mass release of their CBDC by states.
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I think what guarantees that CBDC will be realized soon? It seems that the government has started to panic about the development of cryptocurrencies, I'm not worried about the existence of CBDC, even though they make digital currency, crypto is still growing and will always exist, CBDC definitely makes digital currency, but that is not a barrier for crypto to make coins stable what they want.
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I think what guarantees that CBDC will be realized soon? It seems that the government has started to panic about the development of cryptocurrencies, I'm not worried about the existence of CBDC, even though they make digital currency, crypto is still growing and will always exist, CBDC definitely makes digital currency, but that is not a barrier for crypto to make coins stable what they want.
I think CBDC will not grow like crypto currency, because It's not anonymous like other.
Because we know many investors prefer in crypto currency because they could save their assets safety and cannot be tracked.
I think It's the reason why.
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CBDC is just another form of money, like your funds on a bank card. Most likely it will be fixed-price dollars.
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CBDC is just another form of money, like your funds on a bank card. Most likely it will be fixed-price dollars.
No, most likely every state will want to have a national CBDC. This will significantly increase the efficiency of their non-cash payments in the national currency. CBDC is non-cash money of the state. And they will have practically nothing to do with cryptocurrency. The population of this state will also use CBDC, as it has been using non-cash payments of the state until now. Even they will be more popular than previous non-cash payments, as they will be superior in many ways.
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What are your thoughts about the central banks’ digital currency? Will it be a threat to Bitcoin or could it give Bitcoin a boost?
Of course, almost all states will issue their own digitized national central bank stablecoins. There is not even a doubt about this. It is not even clear yet why they are delaying their release. After all, the efficiency of the work of conventional non-cash payments of fiat money in this case grows significantly. Most likely, some states are in no hurry to create their own CBDC in order to see the practice of their use in other states, and also due to the fact that this is a completely new type of financial asset and haste is inappropriate here.
CBDCs will not have a significant impact on cryptocurrencies, including bitcoin, since they are completely different financial assets. Just as the non-cash payments of governments did not have any significant impact on the cryptocurrency, there will not be such an impact from the side of the CBDC.
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CBDC is just a new form of money with which it is even easier to track all our actions and purchases and automatically deduct tax.
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This idea was first carried out by China, I know the intent of CBDC is to reduce paper money transactions and want to make payment transactions easier, but will it be transparent and the same as crypto, I don't think so.
Some countries want to do CBDC but they prohibit the use of crypto for transactions, I keep my assets in crypto and believe that crypto will be used as a legal transaction in the future.
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In CryptoGaming, Crypto gamers can earn non-fungible tokens (NFTs) or cryptocurrency by playing and winning a game, and those digital assets then become the property of the gamer.
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Yes, but it will be different with the currencies of central banks)
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I don't think central bank will create digital currencies.
Because crypto will be the future currency
Many people predicted about it.
I think crypto world will shine
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I think that with the Digital Yuan project that China has created, it will soon be followed by other countries' Central Banks. Because this crypto is very fast spreading freely. So I am sure that soon there will be other projects such as Digital Yuan from various countries.
Point of correction, CBDC is not a crypto and if we keep calling it that, people or investors mostly newbies that don't understand might actually think this is a cryptocurrency and again I don't think it is fast spreading as you say.
There are nine countries that have fully launched a central bank digital currency (CBDC). Eight of the nine countries are located in the Caribbean. Nigeria and its e-Naira became the latest country to institute a CBDC. It is the first country in Africa to create a CBDC.
You can read the rest of the publication there (http://investopedia.com/countries-developing-central-bank-digital-currency-cbdc-5221005#:~:text=Russia%20and%20India%20have%20already,a%20CBDC%20in%20the%20U.S.)
This is just a digital form of the country's fiat currency and the same value nothing more. In a country like Nigeria, this is not even popular in usage yet but may be in the coming years as the Government is trying to make transactions cashless, maybe adoption might increase but you cannot trade it like any Cryptocurrency.
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There are already countries in the world that has launched their CBDC digital coins, and many countries has concluded plans to launch their CBDC. I think this is the channel that the central banks in the world will come into cryptocurrency and the blockchain technology. It has been researched that the blockchain is an excellent technology and the central banks has no options than to come into it through its own CBDC strategy.
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There are already countries in the world that has launched their CBDC digital coins, and many countries has concluded plans to launch their CBDC. I think this is the channel that the central banks in the world will come into cryptocurrency and the blockchain technology. It has been researched that the blockchain is an excellent technology and the central banks has no options than to come into it through its own CBDC strategy.
The Central Banks in the countries that are aiming on launching their own CBDC around the world are not really adopting cryptocurrency but rather looking at using their CBDC to block the adoption of cryptocurrency. They might be using Blockchain technology which can also be used in many other aspects of the economy from medicine, Agriculture, transportation, etc. CBDC and Cryptocurrencies are two different things, you cannot trade it like you do crypto as I have stated in my previous post here which I believe is the most attractive aspect of all Cryptos.
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Well, this aged well. Central banks are now currently minting CBDCs and it is getting a lot of attention from many governments who dont want to mint cash again. I think it is a good intention, all in all
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This is just a necessary and necessary measure to adapt the traditional financial sector to changing realities
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The main purpose of launching cryptocurrency (bitcoin) was to have faster, more secure, and less costly, peer-to-peer money transactions compared to central banks. But it's not the same.
At least a few banks have already developed their own cryptocurrency. A portion of the assets of some investment funds are placed in particular cryptocurrencies. The investment bank JPMorgan has just developed its own cryptocurrency, called JPM Coin, while the Reserve Bank of India is gradually working toward introducing its own Central Bank Digital Currency (CBDC). However, I think it is not a very good idea as banks will definitely impose a lot of rules, regulations, as well as high interest rates.
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(https://i.imgur.com/9KVYiGn.jpg)
In the past 11 years since the birth of Bitcoin, cryptocurrencies have gained immense momentum and popularity as they are decentralized and are rather free from regulation. This makes them a threat to central banks - defined on Investopedia as “a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations”.
As central banks are unable to control the influence and growth of cryptocurrencies, the latest buzz revolves around them wanting to create their own digital currencies or cryptocurrencies. While some governments are contemplating about it, others have gone ahead to start working on it.
What is CBDC?
A central bank digital currency, or CBDC, is said to represent a country or a region’s official fiat currency in a digital form, through the use of digital tokens and blockchain technology. Whereas cryptocurrencies like Bitcoin and Ethereum are decentralized, a CBDC is centralized. This means that a country or region’s monetary institution will be regulating it.
Interestingly enough, according to the bank for International Settlements (BIS), the idea of CBDCs has been around before Bitcoin even started.
We’re talking more than 20 years!
Why do central banks want to create CBDCs?
The main reason is financial inclusion for everyone, especially those who are unbanked, such as those who live in rural areas who are unable to access banks or ATMs. CBDCs can be made available to anyone with a smartphone - similar to the availability of cryptocurrencies.
Another factor to look at for why central banks want to create their own digital currency is Facebook and its Libra token. While the Libra token isn’t released yet, Facebook’s announcement sent shockwaves amongst policy makers as they have 2.6 billion active users - all of whom could become Libra users. Compared to Bitcoin’s global adoption rate of less than 5%, the volume of Facebook’s user base sure is something that could create a big shift.
Opportunities and risks of CBDCs
With multiple countries around the world either contemplating or working on CBDCs, there have been various discussions about the opportunities and risks that it brings. The BIS recently worked with 7 major central banks around the world to create a report that outline the foundational principles and core features of CBDCs. The report was released on October 9, 2020.
In their summary presentation video on YouTube, the BIS shared the following key opportunities and risks of CBDCs:
(https://i.imgur.com/urIeQZK.jpg)
CBDC VS Cryptocurrency
And just so you know, while the concept of CBDC may sound similar to cryptocurrency because they are both digital assets, CBDC actually goes against what cryptocurrency is all about.
* Centralized VS decentralized
CBDC is centralized while cryptocurrency is decentralized. CBDC will be regulated by a country or region’s monetary institution, also known as one central network. Cryptocurrency, on the other hand, is controlled by the many distributed nodes who gain rewards for maintaining the network.
* Privacy
Blockchain News shared that CBDC is said to possibly be less respectful of your privacy and data because “central banks are infused to regulatory bodies”. Compared to crypto where it’s peer-to-peer and you get to decide how much information you want to share, this is certainly something to consider as you don’t want to become a target for financial criminals.
* Security
While there are weaknesses in the blockchain, cryptocurrency has somewhat managed security concerns. CBDCs “are likely to be cyber-attacked by rival states who now have to contend with one centralized point of failure for financially motivated hackers to attack”, as reported by Blockchain News.
So… will central banks create their own digital currencies?
Right now, it seems like things are up in the air. Benoît Cœuré, Head of BIS Innovation Hub, has shared that while creating a CBDC is not decided yet, the report they did with the 7 major central banks -“Central bank digital currencies: foundational principles and core features” - is a major step forward.
Any CBDCs that are launched will be expected to keep to:
1. “Do no harm” - CBDCs should deliver monetary and financial stability and not hamper central banks in delivering on their mandates.
2. Co-exist with cash, bank notes and other types of money to enable a diverse, innovative and flexible financial ecosystem.
3. Encourage innovation and efficiency, including actively involving the private sector.
BIS and the world’s major central banks want to build on the excitement and commitment that is being seen around CBDCs right now. However, it has been noted that many policy dimensions and foundations need to be explored further before central banks release any CBDCs.
What are your thoughts about the central banks’ digital currency? Will it be a threat to Bitcoin or could it give Bitcoin a boost?
Regards,
Karl
It has been predicted at long time ago.
So I think central bank will create digital currencies t the next several years again.
Crypto currency is the future currency, we should believe about it.
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This really aged well. Central Banks all over the world have now made CBDCs their target currencies since the success of blockchains in hosting the cryptocurrency world. This is seen as cheap and accountability is much easier
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This really aged well. Central Banks all over the world have now made CBDCs their target currencies since the success of blockchains in hosting the cryptocurrency world. This is seen as cheap and accountability is much easier
The banking system is as old as the world and to ignore, and even more so to prohibit, the process is like extinction.