I see it as a good replacement for Debit/Credit transactions for cashless payments that function closer to cash in ordinary contexts without the need for paper.
It’s not a replacement for BitCoin/cryptocurrency, as peers on the network determine the inherent legitimacy of the data rather than a central authority. With Digital Euro, the government could potentially de-authorize or seize any particular token if they believe it was acquired by fraudulent or illegitimate means. Central banks already print out tons of money to suit their purpose anyway, this will just help reduce friction, overhead between government and lenders.
While I can understand the reasons why a government wants to create CBDCs, I never understood why they’re eyeing at cryptocurrencies.
As you said. For cryptocurrencies, Decentralisation is a core value. A government is inherently centralised. So, the tools that are used in cryptocurrencies (namely Blockchains and co.) don’t really make sense, as they’re trying to create verifiable trust in a decentralised system. A government doesn’t want to be Decentralised. What is it going to protect itself from? From itself?
Blockchains only make sense, when an authority like a government or an oligopoly doesn’t control 100% of it.
I see it as a good replacement for Debit/Credit transactions for cashless payments that function closer to cash in ordinary contexts without the need for paper.
It’s not a replacement for BitCoin/cryptocurrency, as peers on the network determine the inherent legitimacy of the data rather than a central authority. With Digital Euro, the government could potentially de-authorize or seize any particular token if they believe it was acquired by fraudulent or illegitimate means. Central banks already print out tons of money to suit their purpose anyway, this will just help reduce friction, overhead between government and lenders.
While I can understand the reasons why a government wants to create CBDCs, I never understood why they’re eyeing at cryptocurrencies.
As you said. For cryptocurrencies, Decentralisation is a core value. A government is inherently centralised. So, the tools that are used in cryptocurrencies (namely Blockchains and co.) don’t really make sense, as they’re trying to create verifiable trust in a decentralised system. A government doesn’t want to be Decentralised. What is it going to protect itself from? From itself?
Blockchains only make sense, when an authority like a government or an oligopoly doesn’t control 100% of it.