Without presenting anything innovative, the digital currencies of central banks are just continuation of the shortcomings of fiat money, they are unable to compete with bitcoin in real terms.
In the past few weeks, digital currenciescentral banks (CBDCs or CBDCs) are attracting more and more attention. China's digital yuan project, the famous electronic yuan (e-RMB), is growing at a rapid pace. The e-RMB project is so advanced that it is already being tested by the general population in the four largest Chinese cities.
China wants to take advantage ofa pioneer ”on a new battlefield to maximize your chances of breaking the US dollar's monopoly on the world's monetary and financial system.
Under these conditions, it is easy to understand why CJinping has made "electronic people's money" a national priority since October 2019. All indications are that China will be the first country in the world to officially launch a state-owned digital currency.
Central banks have entered the race to create their own digital currencies
Following China, many countries say they have already started work on their projects. Many feel that something is happening digitally, and China should not be left alone on this new battlefield, which has every chance of developing into a strategic one..
I recently saw a survey showing that 80% of the world's largest central banks are considering adopting their digital currencies.
The European Union is promoting a digitaleuro, tests of which are scheduled for 2021. Japan and South Korea have already made significant progress in their projects. As for the United States, they are still hesitant. However, discussions on this topic within the Fed are becoming more intense.
Some U.S. Senators are activefor the development of this direction, insisting that the wait-and-see attitude currently held by the United States could entail adverse consequences for the United States in the coming years.
Sooner or later, the United States will create a digital version of the American dollar... This state of affairs is consistent with the course of history, so they will have no choice but to follow the movement initiated by China under the leadership of Xi Jinping.
The main problem will be convincing citizens to switch to digital currencies
When each country or economic zone (inthe case of the European Union) will launch its own digital currency, the main challenge will be to convince citizens to switch to using these CBDCs. Of course, each country will have to conduct large-scale educational and educational programs.
Most citizens are currently completely unprepared to use digital currencies. The educational work that will be carried out will sooner or later benefit Bitcoin itself. This information activity can be viewed as a kind of Trojan horse... And indeed, having received an idea ofUsing digital currencies, citizens are likely to go and try alternative options in practice, which, by the way, provide more reliable protection against encroachments on privacy.
And guess what? That's right, they will choose Bitcoin as the best possible option, respecting their privacy.
You might wonder how I can be in thisso sure. The question is quite legitimate. Therefore, I will explain why in the world of the future, where everything will be digital, bitcoin will always remain an independent, separate species.
Government digital currencies will continue to be based on centralized systems
First of all, all digital currencies of central bankswill be centralized. In fact, they will only be a digitized version of the existing fiat currencies. In fact, if you think about it, today's fiat currencies are already digital, as more than 85% of the world's financial transactions are made electronically.
Consequently, users will face the same problems created by centralizing the existing system.
Cash allows people to have at leastsome minimum of confidentiality when it comes to money. The goal of the massive proliferation of central bank digital currencies is to permanently eliminate cash. Under these circumstances, all financial transactions conducted will be subject to even stricter controls.
This situation will jeopardize the right to privacy of hundreds of millions of people around the world more than ever. Under the current system, citizens can at any time see how what they have in their bank accounts is confiscated by the state.
Thanks to cash, people hadsome guarantee of the safety of their property. With the introduction of the CVCB, the possibilities for confiscation will be total. As a result, there will be even greater censoring problems. As transactions become even easier to track in real time, governments may be tempted to impose sanctions on citizens for completely unfounded reasons.
It is also no coincidence that the Chinese government sees the e-yuan project as the last missing piece to complete the creation of a total surveillance society that was under construction. by them for many years using the social rating system.
Central bank creation of digital currencies will prevent citizens from having an efficient borderless payment system
Bitcoin is an electronic payment system, notknowing the boundaries. You can easily and quickly send Bitcoins to the other side of the world to your friend in complete safety. It will take about ten minutes and the commission will be minimal. In addition, Bitcoin operates without breaks and weekends, which in itself already represents an incredible additional value over the existing traditional banking system.
The introduction of digital banking currencies will only move the problems of the current banking system into 100% digital realm. This event will not bring any benefit to end users.
The lack of confidence in the functioning of the Bitcoin system is an undeniable advantage for its users. Bitcoin belongs to everyone and everyone and does not havea single governing body. Each bitcoin owner can use their money on the Bitcoin network as they please. Such opportunities simply do not exist in the reality of state digital currencies.
All CCBs will be owned by governments that will allow you to use them. And again here we see the same shortcomings as in the current monetary and financial system.
Endless inflation of fiat currencies will continue to continue with the introduction of the CVC
2020 economic crisiscaused by the coronavirus pandemic, demonstrated once again that in times of crisis, central banks adhere to a single strategy: print more and more paper money fromair, while simultaneously reducing interest rates to zero or even driving them into negative values, as, for example, the European Central Bank did.
Since March 2020, the world's largest central banks have already printed over $ 12 trillion.
This tendency to print more and more paper money is the original sin of the modern monetary and financial system. Seven deadly sins stem from this original sin, which sooner or later will lead to the collapse of the existing system..
Such inflation of the world money supply entailswith dramatic consequences for all people. It constantly devalues what the poorest people have. With nothing but cash, in the face of rising monetary inflation, hundreds of millions of the poorest people continue to suffer the brunt of the injustice of this system.
Nothing will change with the advent of the CVCB. I would even say that it will make things easier for the Fed and all other central banks. It will become much easier to increase the M2 money supply. Looking at what the Fed has already done with the current system since March 2020, we should be wary of a kickback.
This huge monetary inflation that weexperiencing as never before highlights the unique characteristics of Bitcoin. Bitcoin supply is strictly limited to 21 million units, and as a result of programmed monetary policy, the release of new bitcoins is gradually decreasing.
By the year 2140, when all bitcoins are released,the world will have to be content with a proposal already in circulation. It is no coincidence that Bitcoin is considered the world's most scarce human invention.
What's more, Bitcoin is the hardest money in the world.
Bitcoin's unique monetary attributesare backed up by the breakthrough blockchain technology he introduced. This supports the Bitcoin Revolution, which aims to build a more just world for all in the future in terms of money.
While some may consider CVCBas competitors for bitcoin in the coming years, I hope I have shown you that bitcoin's decentralization and unique monetary policy will always differentiate it from other types of monetary funds. Bitcoin plays in a league of its own.
Bitcoin is money for people, supported by people, that is, the kind of money that government digital currencies can never become. Central Banks are just a digitalized version of fiat currencies that underlie the imperfect and unrecoverable traditional monetary and financial system.
These CBDs are not innovative, and sooner or later people will realize that the only right decision is to choose Bitcoin.</p>