Paving The Way For CBDCs

We all knew it was going to happen right? The digital dollar was going to come otherwise known as CBDCs. However like all things the government continues to make it seem like they aren't even though we knew all along.

Lately there has been a hard push towards current stable coins from both new laws trying to be passed and the SEC crackdown. From that we have seen a retreat in stable coin values and possibly having it moved into other assets instead such as bitcoin.

What's really crazy is the CBDCs battle continues in house. Some are for it while others don't want it. To be fair a vast majority of money today is already digital so creating a CBDC in my opinion is not far off.

What comes far off is systems, development and overall new tech and infrastructure would have to be built to support, secure and test such systems for any potential flaws. While we most likely will not see a CBDC from the USA this year it is for sure under works in terms of how it would be created and managed.

Make no mistake about it that CBDCs will be watched like a hawk compared to that of paper fiat money. Everything would be reported automatically on autopilot and tracked so everything gets taxed and tracked.

China, Russia and All That

Right now a Chinese-led CBDC is currently underway. It's supported by the likes of Russia and a few other countries to become a new standard from the current world traded USD. It might not seem like a serious matter but it actully is as competition in this manner would in fact start to lesson the value and impact of the USD currency around the world.

In comparison the USA is extremely slow right now in terms of entering this new digital age of cash and is falling behind. This could very well cause some loss in power of the USA in the world markets as China ramps up their efforts.

However a point I would like to bring up about this topic is just how much will other countries trust a current backed by China and Russia etc which are ripe with fraud. Now granted the USA system is as well however in general it's done better than these other countries and as least has made efforts to stop gap issues. In China however these things blow up and the government just blocks its people from banks and locks them down. As we can see this puts a massive increased risk in terms of governments throwing around power again on the civilian population of which people eventually get tired of and then go to war. A war in which we are seeing just starting to play out now and will most likely increase over the years.

Why Crypto Doesn't Want CBDCs

To be fair crypto would be overtaken if CBDCs were introduced. It would in theory eliminate every other stable coin and most likely become to main one used in DeFi and other systems. However I'm hoping that it doesn't become the case and enough people still see the value in why you would want something less centralized.

These CBDCs would remove the right to financial privacy and put everything public destroying yet another freedom people have and potentially destroying crypto. However it could also mark a move for bitcoin and other cryptos to return to their roots on what made them so sought after in the first place and that was a way to say FU to the government and start retaking freedoms to people that have been lost.

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