Reasons why CBDC are a BAD idea
CBDC_Gear

Reasons why CBDC are a BAD idea

By Keith Thuerk | New to Crypto's? | 5 Dec 2020


Reasons why CBDC are a BAD idea

What is CBDC its defined as a Central Bank Digital Currency.  One can think of it as a Digital dollar ($) or whatever currency it is intended to displace. The premise being they are digital offerings, which during a pandemic might sound tempting as they is no exchange human to human. Most Central Banks, think G8 sized countries, have announced they are experimenting with CBDC's and some are further along...such as China with their Digital Yuan. Most if not all are built and based upon blockchain technology that borrowed from the Distributed Ledger Technology (DLT). The main difference with BTC & ETH is they are decentralized while CBDC's will be centralized and thus retaining control.

#1 - Governments don't like competition.  This doesn't need explaining however, in the event that someone might be thinking of going off. think how Governments have treated ALL currencies since the dawn of time; devaluate and destroy.

 

#2 - Tracking of all transactions - Track all transactions, think how CBDC can be quickly added to a social credit system to have one place to know everything about everyone.  Not that I have anything to hide we currently live in the Land of Liberty and knowing that ALL privacy will be gone in an instant does NOT sit well with me.

 

#3 They love inflation - it helps them continue to expand their spending thus realm of control. Think Helicopter Ben bringing bailout money by the Hundreds of Billions, then this year its Trillions.  More and more fiat is required to stimulate the economy (each time it has less and less benefit). Think I am off my rocker?  Not yet; look at ALL the countries around the globe that have negative interest rates, they deflate fiat to ease some of the debt burden. It has negative consequences that we don't need to get into here

CBDC's will compound all these issues

Summary - most countries will replace their Fiat currency with a CBDC, I think the global pandemic has accelerated the timelines for rolling out these offerings but 36-48 months.  Those left behind might not be able to catch-up and end up relying on another offering.  Yes, that's a bold statement but is a new topic for a new blog.

 

Enjoy the Journey!

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Keith Thuerk
Keith Thuerk

Currently learning about Crypto's and DeFi to combat the Inflationary Tidal wave coming our way!


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