Question.
If CBDC comes into the play what would happen to XRP, USDT, USDC and other stable coins?
Do they serve any purpose?
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Question.
If CBDC comes into the play what would happen to XRP, USDT, USDC and other stable coins?
Do they serve any purpose?
A CBDC is not a cryptocurrency or a stablecoin.
Cryptocurrencies are digital tokens created outside of the traditional fiat system by a blockchain using cryptographic tools.
Stablecoins on the other hand, are simply pegged to fiat currencies, with an equal amount of fiat held in reserve.
A CBDC would not be pegged to a fiat currency in this way... it would literally be the fiat currency itself.
$1 of a US CBDC would be exactly the same as a paper note in your pocket.
Their purpose would be for governments/central banks to fully control the way money is issued and used by citizens while reducing costs and increasing transaction speeds.
Stablecoins would still have a place within the crypto ecosystem, serving the exact same purpose that they do now.
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Does that mean the CBDC digitalization of the currency would watch the accounts of people?
The main attraction of CBDCs for the ruling class is its surveillance potential. When everyone is forced to use CBDCs, every transaction get logged somewhere (not blockchain, but that doesn't matter). This will allow transactions which would normally slip undetected to be detected and therefore taxed. Capturing elusive tax revenue is a major promise of CBDCs.
Then there is monitoring of transactions for so-called money laundering. While intended for criminal elements of society, CBDCs will allow the ruling class to redefine who is considered a criminal.
Airline miles are a limited form of money. Cryptocurrencies-- if they're allowed to exist in that environment-- could end up being used in the same way as airline miles.
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All transactions will be under the hands of the government without any barriers. They can program any money that is distributed.
For example, they could stimulate but code the payouts to expire if not used in say 60 days (then the money disappears). Or they could say the money cant be used on certain products.
CBDCs are a bad deal.
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For the most part, I think they would have no real purpose besides being able to not show up on the government's transaction logs.
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