- There is a lot of talk in regards to the pros and cons that CBDCs have on the world.
- The awareness of CBDCs has seen a significant increase with many leaders and regulators across the world starting to notice the new asset class.
There is a lot of talk in regards to the pros and cons that central bank digital currencies have on the world. The awareness of central digital currencies has seen a significant increase over the past few months with many leaders and regulators across the world starting to notice the new asset class.
As a quick recap for those that don’t know, a central bank digital currency is a form of fiat currency that has been issued and regulated by a particular nation. They are becoming ever so popular throughout the globe with countries such as China, Sweden and the United Kingdom taking notes. Of course, a central-bank digital currency is centralised whereas bitcoin and cryptocurrency is obviously decentralised.
Many believe that Facebook’s announcement of a stablecoin last year was what prompted such a development. In China, a digital Yuan is being developed, leaving the western world concerned on what the future holds in the area of finance.
That is the key different difference between central digital currencies and the leading cryptocurrency. The founder and CEO of Grayscale, Barry Silbert recently said the following in a recent webinar hosted by the company:
“I can assure you that when any of these central banks actually launch these [CBDCs] they will not be capping the supply of the digital currency. Central banks love to print money, and I can also assure you that they will absolutely require users to use and engage with the existing financial system. And, obviously, therefore be subjected to all the associated cost and restrictions.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!