- Around this time last year, Facebook announced its Libra token with financial inclusion as its main goal.
- As it was announced, many central banks all over the world were all of a sudden concerned about what the social network would do with this stablecoin in mind.
Around this time last year, Facebook announced its Libra token with financial inclusion as its main goal. As it was announced and explained, many central banks all over the world were all of a sudden concerned about what the social network would do with this stablecoin in mind. The token was talked about incessantly over the next few months before it was even approved, but what was going through the banks' minds was what they were going to create in order to oppose it. From this, central-bank digital currencies were created.
The whole idea of a central bank digital currency was introduced by the bank of England in 2015 just after bitcoin started gaining some popularity throughout the world. The news of Facebook's cryptocurrency coming into fruition encouraged banks to develop these CBDCs that’s a much quicker rate in order to even out the playing field.
Now that Facebook's stablecoin is back in the public eye with a new goal and further development, the DCEP being developed in China is also coming to the end of its development. There is a significant amount of debate going on here in how the two will be able to compete over the next two years.
But Libra Is probably the only thing that could stand in the way of digital bank-backed currencies. CBDCs are completely under the control of central banks whereas the stable coin from Facebook is under the control of just that, Facebook (a corporate body). Libra Might be the option that many of us use in the end as it promises to provide and boost financial inclusion and for people to use CBDC, they will need to have a bank account already in use. Something that may not be an issue for many of us, but for others, it could be a game-changer.
Speaking on the development of these two projects, Andreas Antonopoulos has previously stated the following, saying that it’s going to be the Darkhorse to rule them all…
“All of those systems[Libra, CBDC, and other new technologies] lack the fundamental components that make Bitcoin interesting and different. Bitcoin is revolutionary, immutable, public collaborative, and decentralized.”