4 months It is beyond delusional to think traditional finance will die and go away. 100% decentralization is a dream and nothing else. All of you should get used to a future with CBDCs. Reddit      

CBDCs will soon be on everyone’s minds and in the digital wallets of the general population. According to The Atlantic Council,, “87 countries (representing over 90 percent of global GDP) are exploring a CBDC. In May 2020, only 35 countries were considering a CBDC. 9 countries have now fully launched a digital currency. Nigeria is the latest country to launch a CBDC, the e-Naira, the first outside the Caribbean. 14 countries, including China and South Korea, are now in the pilot stage with their CBDCs and preparing a possible full launch.”

The possibilities for CBDCs are endless. A CBDC could be money that is GIVEN to you by the government to supplement your income; this can be programmed so that you can’t gamble it away or spend it on booze and cigarettes or something. Another could be like the money in your bank account now and can be funded with your EARNED money and some GIVEN money, except that it is stored in a digital wallet instead of a bank. Money can be programmable so that a shipment is paid for on satisfactory arrival. CBDCs could be used for record keeping when purchasing a car, a house, or to help you gain credit when applying for a loan.

According to Blockchain 101, “CBDCs and their applications aim to offer a reliable alternative to cash rather than serving as its replacement. The next important functionality of CBDCs evident in their use cases refers to the support for digitization.

With the help of digitization, CBDCs can offer exceptional benefits like peer-to-peer transfers, transparent and competitive ecosystems, along programmable payments featuring smart contract support. Furthermore, central bank digital currency use cases for cross-border payments could also utilize interoperability with foreign CBDCs or multi-CBDC platforms.”

Projects like Quant Network (QNT), CBDCs and regulated, fully-compliant exchanges like LCX are the future for crypto and digital money. Quant could connect CBDCs and make them easily interoperable with any blockchain, which could open the crypto market to billions of more people and institutions. A CBDC created by countries all around the world running through Quant’s Overledger technology solve the problems that cryptocurrencies face with interoperability, volatility, and legal certainty that hamper a practical day-to-day worldwide application. Distributed ledger technology, which uses tokens to represent real goods and services and allows these to be traded digitally, makes it possible for flows of services to be programmable, autonomous and automated.

Imagine if the government were able to give people assistance and program exactly what the money is intended for. Maybe with a digital record taxes could be filed automatically. There are so many possibilities, I can’t see CBDCs not being a huge success. I can already predict that the majority of CBDC users won’t care about using crypto, as long as they are able to make instant, fee-less or low-cost cross-border transactions. According to the International Monetary Fund: “CBDCs are more cost efficient than physical cash as they have lower transaction costs; they can promote financial inclusion, meaning those who are unbanked can get easier and safer access to money on their phone; they can compete with private companies that need incentives to meet transparency standards and limit illicit activity; and they can help monetary policy flow more quickly and seamlessly.”

Furthermore, there is no volatility, so users don’t have to worry about wild fluctuations in value and don’t have to put their money into a stable coin like Tether. Would you trust keeping your spending money in Tether, run by this random guy with very little presence on the internet, or in the full faith and credit of the American government?

According to Bloomberg, “They could also improve access to legal tender in countries where cash supplies are dwindling. An IMF paper said the new currencies could boost financial inclusion in places where private financial institutions find it unprofitable to operate, and generate more resilience in regions prone to natural disasters.”

Even if your plan is to stick all of your money into Bitcoin and avoid any connection to government and banks, please take the time to read about and understand CBDCs and how the could end up helping a lot of average everyday people around the world. It is impossible to deny: CBDCs won’t be going away and they will soon become a part of everyone’s lives.

Read more here:
https://hbr.org/2021/10/what-if-central-banks-issued-digital-currency

submitted by /u/lunargrover
[link] [comments]