Federal Reserve Chairman Jerome Powell said on the 15th that when CBDC, a digital currency issued directly by the central bank, comes out, cryptocurrencies such as Bitcoin will become unnecessary. These digital dollars, digital yuan, digital euros, etc. are in progress in each country. Are these really exclusive to Bitcoin?
CBDC seems to be just a digital store of value that does not necessarily use the blockchain technology of cryptocurrency, which is tracked and managed by the central bank while using the existing nationally issued currency unit. It has already been piloting since October last year in China.
In fact, as most people have already used credit cards or online transactions more than using cash, our cash holdings and consumption are operated in a form similar to digital currency. However, the biggest difference with CBDC is that the central bank can directly approve transactions without going through intermediaries such as banks and credit card companies.
Although the United States is stimulating the economy through the recent quantitative easing policy of the United States, neighboring countries that use the dollar are suffering a lot of damage from the depreciation of the dollar. Although the U.S. Fed ostensibly plans to reduce transaction costs and benefit the financially underprivileged, the use of CBDCs and the monopoly position of the dollar as an alternative to the legalization of Bitcoin in many developing countries and the threat of dollar hegemony. Sometimes I wonder if it's something I want to keep.
Right now, the Bitcoin price may be slightly affected by the CBDC news, but personally, I think it will be difficult to have a big impact on the Bitcoin initiative, which is already taking the lead in the digital currency world and has already been officially supported by various countries. do. In addition, cryptocurrencies were created as a result of a major paradigm shift called 'decentralization', not simply by pursuing non-face-to-face and cross-national currencies, but I do not believe that CBDCs will be able to stop the flow of decentralization altogether.
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