Dual Money System

[slapper]

A lot of people still think of this in terms of crypto/fiat, but that binary seems out of date now. What we're actually seeing happen around the world is a separation of functions: fiat currencies still hold most of the trust of consumers and state power, while stablecoins are keeping infrastructure for money transfers, payments, and fast settlements alive

Dubai has made crypto pay legal (consensually). In the U.S., rules are changing so that banks can handle stablecoins with fewer problems. At the same time, the EU's MiCA may kill half of the innovation by mistake with its high-cost compliance

People think CBDCs will replace this. Good luck. They’re surveillance-heavy, UX-deadweight for now. And why would you go back to SWIFT when you can use Tether/USDC across countries with almost no fees and instant clearing? Most people don’t care about ideology. They want an smooth experience, quick entry, and fewer problems. And that’s what stablecoins and crypto payroll rails are starting to offer

We’re layering over fiat. Just like we layered the internet over old telephony

[mu_enrico]

I use stablecoin USDT/USDC more often nowadays, and sometimes I use it more than my local e-wallet apps. So stablecoin will be #1 soon IMO. However, people see CBDC as something different from stablecoin. What if central banks launch their own crypto-based stablecoin? Probably it will be better than the shady Tether corporation as the backer. That's why I think CBDC and stablecoins are pretty similar, it will converge at some point.

[bayu7adi]

Most people don’t care about ideology. They want an smooth experience, quick entry, and fewer problems. And that’s what stablecoins and crypto payroll rails are starting to offer

Yes because it is a direct benefit that can be felt by the people who use it... to hell with ideology, as long as money and its methods are easier and more convenient to use, it will always be their choice... whether it is decentralized or centralized, users will still consider their choice on something that is more convenient and secure...

CBDC is not that popular right now, but it still has very good potential for the future, we don't know yet what the money that is favored by many people will be like right now... but what is certain is that the QR Code era has become something commonplace in many countries...

[Bobcrypto]

I use stablecoin USDT/USDC more often nowadays, and sometimes I use it more than my local e-wallet apps. So stablecoin will be #1 soon IMO. However, people see CBDC as something different from stablecoin. What if central banks launch their own crypto-based stablecoin? Probably it will be better than the shady Tether corporation as the backer. That's why I think CBDC and stablecoins are pretty similar, it will converge at some point.

Obviously stable coin will dominate faits, I don't have a single doubt about this, people preferences for USDT/USDC and other stable coins will gradually increase in near future.
CBDC is similar to the centralized stable coins, but CBDC Fiats are controlled by government with much authority and power. In addition, some stable coins are decentralized, while Fiats have excessive governments control that lead to much inflation.
Again, the centralized stable coin like USDT, USDC others has some backing with the USD and other commodity, the Fiats has no backup and printing of faits has no limit.

[Ambatman]

That's why I think CBDC and stablecoins are pretty similar, it will converge at some point.

It would be better if they acquire it than creating theirs because most investors would be affected once a new competition from the government comes in
Well we all know the government doesn't care about her people so creating theirs and naming it after himself wouldn't be a surprise from Trump Ohhh he already has  Trump's World Liberty Financial crypto venture.

People think CBDCs will replace this.

CBDC is a failed experiment and the adoption rate is proof of its failure.

[mu_enrico]

CBDC is similar to the centralized stable coins, but CBDC Fiats are controlled by government with much authority and power. In addition, some stable coins are decentralized, while Fiats have excessive governments control that lead to much inflation.
Again, the centralized stable coin like USDT, USDC others has some backing with the USD and other commodity, the Fiats has no backup and printing of faits has no limit.

Most top stablecoins are centralized anyway, with even more risk of embezzlement, compared to, if central banks back, let's say USDT.
Even though not all underlying assets of top stablecoins are paper USD, but mostly derived from USD or government power anyway, like T-bills and stuff.

It would be better if they acquire it than creating theirs because most investors would be affected once a new competition from the government comes in
Well we all know the government doesn't care about her people so creating theirs and naming it after himself wouldn't be a surprise from Trump Ohhh he already has  Trump's World Liberty Financial crypto venture.

Another scenario if people don't want a monopoly, maybe central banks allow commercial banks to launch their own stablecoin... That way, CBDC can be somewhat decentralized via commercial banks, but at the same time, under their control.

[slapper]

I use stablecoin USDT/USDC more often nowadays, and sometimes I use it more than my local e-wallet apps. So stablecoin will be #1 soon IMO. However, people see CBDC as something different from stablecoin. What if central banks launch their own crypto-based stablecoin? Probably it will be better than the shady Tether corporation as the backer. That's why I think CBDC and stablecoins are pretty similar, it will converge at some point.

That’s a solid take. Respect for actually using USDT/USDC day-to-day. I’m in a similar boat. My freelance gigs pay in USDT and I now use it more than my actual bank account. It’s just faster. More predictable. No frozen transfers, no weird KYC flags, no waiting 3 days to “clear". That alone makes it superior in practice, even if it’s built on imperfect backing. Maybe we’re headed toward “tiered money". CBDC for compliance, USDT for freedom, USDC for somewhere in between. I guess we’ll use them all, but we’ll use them differently

Most people don’t care about ideology. They want an smooth experience, quick entry, and fewer problems. And that’s what stablecoins and crypto payroll rails are starting to offer

Yes because it is a direct benefit that can be felt by the people who use it... to hell with ideology, as long as money and its methods are easier and more convenient to use, it will always be their choice... whether it is decentralized or centralized, users will still consider their choice on something that is more convenient and secure...

CBDC is not that popular right now, but it still has very good potential for the future, we don't know yet what the money that is favored by many people will be like right now... but what is certain is that the QR Code era has become something commonplace in many countries...

I agree. Most people just want the damn thing to work. It's not ideology that can get a lot of people on board. it's UX. My friends went from "I don't trust crypto" to "I use USDT on Tron/BSC/some silly chains". QR code is another innovation. In Vietnam, Indonesia, even parts of Africa, QR is now the standard language of money. It doesn't matter what tech is running on it. What matters is speed, no minimums, no weird questions from the bank, no “wait 3-5 business days"

[target]

I heard it somewhere that USDT/USDC is the actual CBDC where they can freeze the tokens which its been dne before. All these stablecoins are pegged to the USD and its owned by the US also which the company behind these stablecoin issuers are from US.

Although I disagree about it, its something still to think about because we may have been deceived gradually. I'm still up to see currency going to be backed by gold.

[snowpega]

This thing is acting like a bright new shining star because many countries are adopting crypto space payments, and this act is giving it a big push to its promotion and just because of those who are still not accepting crypto space and putting it under consideration. Some days ago, I was reading a post that only 7% of the world population is involved in the crypto space, and that makes me feel like we are still early birds in this space.

This world is becoming modernized day by day, and this speed of modernization is putting me in the thinking that those days are not so far when the fiat system will be eliminated and it will be replaced by a digital money system, which seems to be crypto space. What do you think?

[Mr. Magkaisa]

I use stablecoin USDT/USDC more often nowadays, and sometimes I use it more than my local e-wallet apps. So stablecoin will be #1 soon IMO. However, people see CBDC as something different from stablecoin. What if central banks launch their own crypto-based stablecoin? Probably it will be better than the shady Tether corporation as the backer. That's why I think CBDC and stablecoins are pretty similar, it will converge at some point.

              -     USDT/USDC can be said to be very useful when it comes to exchanging crypto to fiat currency, until now millions of crypto community
are benefiting from it honestly speaking.

Then this is also what is used when others think we are entering a bear market, they exchange their holdings for stablecoins so that they can maintain the value.
Now the CBDC is if that is what is implemented, it is clear that everything will be regulated for sure.

[slapper]

I heard it somewhere that USDT/USDC is the actual CBDC where they can freeze the tokens which its been dne before. All these stablecoins are pegged to the USD and its owned by the US also which the company behind these stablecoin issuers are from US.

Although I disagree about it, its something still to think about because we may have been deceived gradually. I'm still up to see currency going to be backed by gold.

USDT and USDC can be frozen. We’ve seen it happen. In that sense, they’re programmable compliance tools. So while they offer crypto-speed and borderless use, the trade-off is they’re basically centralized extensions of U.S. monetary reach. But most people prefer this trade-off. Because they want refunds. They want reversibility. They want someone to blame if things go wrong. And that’s where stablecoins fill that psychological and functional gap

gold-backed currency sounds nice in theory, yet it doesn’t scale well in a digitized, fragmented, high-speed global economy. Plus, nobody’s asking: who controls that gold? Where is it stored? What’s the enforcement mechanism?

This thing is acting like a bright new shining star because many countries are adopting crypto space payments, and this act is giving it a big push to its promotion and just because of those who are still not accepting crypto space and putting it under consideration. Some days ago, I was reading a post that only 7% of the world population is involved in the crypto space, and that makes me feel like we are still early birds in this space.

This world is becoming modernized day by day, and this speed of modernization is putting me in the thinking that those days are not so far when the fiat system will be eliminated and it will be replaced by a digital money system, which seems to be crypto space. What do you think?

I've also seen that 7% number going around. It's strange to think that 93% of people in the world haven't even touched this. Depending on how you look at it, that's either sad or crazy exciting

Even if we're early, that doesn't mean that fiat will be replaced. More likely, we're moving towards a multilayered world where fiat exists because it has to (state control, taxes, pensions) and crypto exists because it can (for example, mobility, privacy, and efficiency). It's not because it's perfect that they'll live together, but because it's necessary

Yes, it looks like we're early. But maybe we need to rethink what it means to "win" in this time and place. Are we building an alternative, or a parallel? Would love to know if you ever want to live off on crypto alone. Or just use it when it makes sense?

[Z-tight]

CBDC's are pro-surveillance and in my opinion, it is just a tool that the government wants to use to attack people's privacy. However, how different is it from stablecoins in terms of surveillance, stablecoins are centralized, the issuers can freeze it under the orders of the government, they can even freeze it if it is in your own wallet. Even if you must use stablecoin, i don't recommend that you hold it for a long time.