Note my words: Governments and central banks will never care about your wealth and privacy the way you do. This fact is the cause of the death of central bank digital currencies.
They say that if you can’t beat them, join them. This is exactly what CBDC is trying to do. They want to join a party that is a cryptocurrency without giving citizens the privacy and democratic freedom that a truly decentralized digital currency provides.
In a recent article, I argued that regulation and law enforcement is a necessary part of making cryptocurrency truly mainstream. I definitely believe in this, but CBDCs won’t.
CBDC does not decentralize wealth. They don’t want power, ownership, or money decentralization. They do not give people oversight or authority over portfolio value.
The institutions that create these digital currencies will work on an open and open basis to promote the benefits of their innovations and their ability to take advantage of the best cutting-edge technologies to further share value with each other. They will advocate the need to make the old financial system more efficient and modernized. Think for a moment about two countries that are leading the way in developing their CBDCs.
On the topic: Central bank digital currencies can overturn global finance
Who is driving the development of CBDC?
The Bank of Russia has published an advisory document outlining plans for the digital ruble. like him! The Bank of Russia is working on the digital ruble. This news became known only last month. However, it was recently announced that the Russian government does not support cryptocurrencies or issue new tokens. In other words, Russia wants a share of the digital currency cake, but only if the authorities take control of the digital currency. This is a fundamental problem for any CBDC: None of them will give the keys to anyone.
On the topic: Can Russia lead the crypto boom in Eastern Europe?
To be honest, Alexei Guznov, head of the legal department at the Central Bank of Russia, said earlier this year that it would not be illegal to own a cryptocurrency as long as it was acquired in a jurisdiction that does not ban it. .
China is already testing its own digital yuan. China is also trying to launch a digital yuan. Trials are already underway in the Hong Kong Bay region, and state banks are extensively testing their digital currency portfolio. The Chinese online digital currency payment program includes two levels, one for central banks and one for commercial banks. While commercial banks may use blockchain technology to conduct some transactions, the central bank level will definitely be central.
On the topic: The CBDC is near, but many details are still unknown
However, control is at the core of the core of a central bank’s digital currency – controlling wealth, controlling people, and of course, controlling data.
It’s CBDC versus Cryptocurrency, not East versus West
The drive for central banks around the world to create their own digital currencies is not a battle between East and West. Moreover, it is more about CBDC against cryptocurrencies, which you don’t have to worry about censorship or censorship from central authorities.
The point is, these two warriors are not alike. Central bank digital currencies are just digital currencies. The format may be different, but the goal is the same: to maintain control over the economic system as a whole and to punish those who do not adhere to the rules established by the central bank or government.
Imagine for a moment that the European Central Bank wants information from the public about what a digital euro might look like. The European Central Bank website describes the many benefits associated with the development of the digital euro, in particular that the use of the digital euro will manifest itself when an extreme event such as a natural disaster or pandemic occurs. But it is a wonderful and not very subliminal message that should be mentioned in the ECB’s description of the digital euro:
“It could also be critical if people turn to foreign digital payment methods, which could undermine financial stability and monetary sovereignty in the eurozone.”
Let’s face it, Bitcoin (BTC) is synonymous with foreign digital payment methods. Central banks don’t want you to use Bitcoin, Ether (ETH), or any other decentralized cryptocurrency. They want you to use a traceable currency. They will be able to decide which regulators and tax authorities will have access to your financial data and which ones will not. CBDC is not an attempt to revolutionize finance or technology.
This is, in fact, the latest attempt to maintain control of the individual, even if decentralized currencies take wealth, power and influence out of the hands of the ancient world.