So, the abandonment of the gold standard and the corrupt banking system creating debt-slaves for profit and hyperinflation whilst always being bailed out themselves with zero accountability is what led me to crypto. Satoshi Nakamoto saw how fiat was abused and created bitcoin as a sound monetary system: peer-to-peer, permissionless, decentralized, scarce, secure and so on.
The reason it’s flourished is that others recognize it as sound money in terms or store of value. It cannot be hyperinflated to absurdity or abused the way fiat has and still is, it cannot be controlled if and when the user has access to it.
When countries talk about creating their own ‘digital dollar’ (or whatever) I don’t really understand their logic. Also, isn’t the dollar *already* (primarily) digital?
Anyone know the reasoning behind countries’ plans to create ‘their own’ digital currency? Do they not get why people flock to sound crypto projects? Sure, some newbies flock to centralized VC backed crap projects in hope of casino-gains but after enough rug pulls they’ll get it too. Do countries think people will not understand there wouldn’t be any difference between a ‘digital dollar’ and today’s digital money?
Am I missing something?
26 thoughts on ““Digital dollar” (or other national digital currencies) – what’s the point?”
Digital dollar = blockchain = all tx recorded forever and traceable, much better than banks for any gov who wants to monitor its citizens money flows
It’s just FIAT with extra steps
The point is so that the government can continue to control the power of money so that it is close to impossible can rise up against them.
Its the governments version of a compromise.
CBDC is the exact opposite of cryptocurrency but using the same technology.
They get a lot more control with a cbdc. They also eliminate all privacy and don’t have to ask private companies to steal or view your money, they do it themselves.
Eventually, They’ll have salary and wealth caps, spending limits on bad things, spending rewards for good activities, they’ll ban things much easier and debank things like legal weed much easier. Theyll have time limits to spend it or lose it. They’ll have helicopter money in fine tuned specific details, distributed unevenly however they desire. They’ll have different interest rates for different segments of society. And as they get lobbied or elected they will become more and more authoritarian as the opposing constituents are continually promised more monetary benefits(at the expense of their “enemies”) when their rep is elected.
We know this because throughout history, once a government has a power, it’s just a matter of time before they abuse it.
For the user/consumer, what is it good for? Absolutely nothing.
On the governments side it opens all kind of abuse up that is not possible with normal fiat. It’s about increasing their control over their citizens more than anything.
If implemented it, would not surprise me if it would start with disapproving letters, texts or emails over your spending choices, then escalate to authoritarian madness
The point is more control for government and easier for them to steal from you
It’s about complete fascist control over every human. They can shut you down at any time.
I’ve been wondering the same myself. Will be following this thread in the hope someone smarter than me actually has an answer.
Unfortunately all I can do is reaffirm that it sounds completely pointless.
So you mean stablecoins?
Then they’ll ban all other crypto currencies but will still say they support blockchain because they have digital dollar
Is there anyone who is excited for this or have any interesting ideas of what it could or would be used for?
Just seems like a stablecoin with an untrustworthy creator and no financial incentive. Why would anyone use this instead of regular fiat of other stablecoins?
It will be more traceable, that’s the only difference.
Remember, satoshi Made btc, not all crypto or digital money have the same atributes even if Is also blockchain.
All dollars are digital or do you see those dollars physically in bank account… you only see numbers and that’s it… the future are changing in no time…
Government can not only see everybody’s funds, they also can lock them if they want to.
So, actual cash is not really in the banks these days with the wonders of [fractional reserve banking](https://en.wikipedia.org/wiki/Fractional-reserve_banking) – All our money is basically on computers anyways.
Countries would simply be making their own, personalized version of a private blockchain in order to easily track and identify citizens money instead of using antiquated banking systems dating back to the 1970s when the majority of the current money you know today was created.
Really, all this information is already available via banks, but to get the information you have to go through permissions and channels – With a Central Bank Digital Currency all that information is available to anyone who has those permissions to start – AKA the government.
Your money in a bank is never really private. All of it is reported to the government if they ever have an interest in your account, they are tied closely to one another so information is shared whenever it’s convenient. CBDCs simply speed up the process.
Its much more traceable, which of course any country’s government would want
I still dont understand why cbdc get brought up in the same conversation as crypto. Theyre pretty much the antithesis of one another. To me a cbdc/digital dollar is just gonna be used for nothing more than tracking and financial surveillance.
Assuming that digital dollars won’t be a fixed/ limited supply is interesting. I’d assume that wouldn’t be the case, and it would give the govt/ taxman/ law enforcement the ability to see every transaction going on and complete control over the citizens.
same has happening in India regarding launch of digital currency. I see no point.
Digital dollar is just an obvious advancement from the current money which is already digital anyway. You are being hypocritical and denial to the concept of digital money if more than 80% of your day to day transaction is settled cashless. CBDC is just one step more of formalization and standardization of digital money into a single unified form.
It won’t hurt crypto, unless it ends up with outlawing of crypto but I saw this as unlikely. A more probable situation is that Visa and Mastercard would get rekt.
>isn’t the dollar already (primarily) digital
Is there a way to move any (non-crypto) money online without having to go through private banks, paypal, visa, mastercard, etc?
>Do they not get why people flock to sound crypto projects?
Do you not get why 99.9% of people don’t care about, or even hate, crypto? haha
I don’t get CBDC either. Why would anyone who knows anything about crypto opt to use CBDC when coins like USDC are available. Unless they pass a law that says you can only convert to fiat by using CBDC. How likely is that and can it be done? I don’t think so.