Central Bank Digital Currency which Western Nation will lead?
This was a busy week for the USA and the Western Economies in the realm of Central Bank for Digital Currency (AKA CBDC.) The Department of Justice (AKA DOJ) released the Crypto enforcement framework https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-publication-cryptocurrency-enforcement-framework And the Bank of Japan (AKA BoJ) announced they will begin CBDC experiments in 2021 -https://atozmarkets.com/news/bank-of-japan-begin-cbdc-experiment-2021/
Not to be out done the South Korean Central Bank announced they will release their CBDC in 2021 - https://crytonow.com/2020/10/07/south-korea-central-bank-plans-to-test-national-digital-currency-in-2021/ and I am certain you saw that the Finance Firm 'Square' entered the BTC market to the tune of $50MM (https://www.cnbc.com/2020/10/08/square-buys-50-million-in-bitcoin-says-cryptocurrency-aligns-with-companys-purpose.html)
So what does this all mean? Drawing my own conclusion that the top nations in the G8 (AKA Group of Eight) are moving in lock-step toward release of CBDC. https://en.wikipedia.org/wiki/Group_of_Eight To me that means they have been exploring Crypto's long enough to feel comfortable mentioning them publicly. Put another way they can see what is working and not working without peering eyes and scrutiny.
Does this mean the end to leading nation fiat currencies such as $ £ € ¥? My guess is yes! However, I don't know have a crystal ball I just believe they will co-exist (Fiat & CBDC) for a period of time to allow adoption and wider utilization. Will that be the end of 2020? Or first thing in 2021? Or during a major holiday in 2021? All great questions? Not being in the 'club' I have no way of knowing. You being here reading this means you get a sense of the impending system changes too. And one of my favorite sayings is its always better to be early than 1 minute late.
Who will lead? Another tough question, my assumption at this point the G8 Countries will try to all release their CBDC concurrently. This provides several benefits, one of which is spreading out the risk among fiat currencies. Will smaller countries beat the G8 offerings to market; without a doubt. They are smaller and more nimble, again providing opportunities to the G8 Countries to learn from them.
Think back to all the planning and PR that the European Union had in/around the release of the Euro (€), by allowing both in circulation at the same time allows for greater flexibility.
As with life timing of CBDC will be critical. Think of the flood of people stampeding into Crypto's once they realize the coming opportunity!
Enjoy the Journey!
