So, just wanted to share this update. As of March 1, 2023, U.S. officials are still figuring out if a CBDC is actually beneficial for the country. To move things along and back the Fed's work on this, the Treasury is putting together a CBDC Working Group that’ll look into how a U.S. CBDC might affect key areas like global finance, national security, and issues around privacy, illegal money, and financial inclusion.
Even while all this is going on, they’re aware of how crucial it is to be part of the worldwide discussions about CBDCs. They want to actively join in setting global standards and share their tech know-how with other countries that are working on their own digital currencies.
I don't know if the central bank digital currency implementation is a good idea or not ? Even though the CBDC will be recognized and accepted world wide but the control of CBDC will still be in the hand of the government/banks. They can print any number of digital coins and it will not be a hedge against bitcoin.
Yes, people may keep their wealth in CBDC's and not in the currently used stable coins like USDT or USDC But we need to know how much CBDC is centralized. People usually save taxes while having their wealth in tether, don't know why they will keep their money in government issued stable coins.
@Virasog
Nope! It's not a good idea for commoners like us! CBDC will take away whatever little anonymity we still enjoy with fiat money.
Also CBDC is not an investment or anything similar to crypto stablecoins. So people who are parking their surplus funds in stablecoins, are highly unlikely to move out of that comfort zone to CBDC which is strictly regulated by government.
for a fee
https://www.bloomberg.com/news/articles/2023-03-01/us-treasury-to-lead-new-working-group-looking-at-digital-dollar#xj4y7vzkg
for free
https://coingape.com/us-treasury-will-lead-a-working-group-that-looks-into-digital-dollar/
US Treasury Will Lead A Working Group That Looks Into Digital Dollar
"The US Treasury Department will now lead a working group that will conduct regular talks on the future launch of a Digital Dollar. On Wednesday, March 1, Nellie Liang, Treasury undersecretary for domestic finance said that the working group would include leaders from the Treasury, Federal Reserve, National Security Council, and other agencies."
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I'm still watching the process
If the choices are only between the two then why not? It's probably more secure to use the digital fiat issued by Governments than let a privately owned company control your wealth. Let's not forget that USDT is not really decentralized and can still be frozen by Tether at anytime even if it's stored in you non-custodial wallet.
USDT or USDC can be frozen by the authors of the smart contract, but they cannot regulate your spending and tell you how many tokens you can spend per week or month. And the functionality of the CBDC allows the central bank to set any spending limits and in the future will be able to regulate the types of goods that are allowed to be bought.
Yet another country and same story. It looks now as if every country has started a race to create their CBDC and popularize it. China and India have already done it and now US as well. I don't really understand the point of this, if the government will eventually control the whole supply and demand of this currency what's point having a different name for it. It's been so much time India has launched their CbdC haven't met a single person using it.
I am talking in terms of taxes. If you put all your stable coins in government issued CBDC, government can easily know if you are paying tax on them or not. Many people haven't declared their crypto assets to the government and when suddenly they transfer their wealth in CBDC, it will raise questions as to where this wealth came from and why it was kept hidden for all those years.
Yes, moving forward if you have fiat money and you want to convert it into digital currency, it is far better to use CBDC than the tether. Also, when every country has their own CBDC, the role of paper money will be limited.
Despite knowing that Uncle Sam loves having control over literally everything, I don't think they'd be issuing a retail CBDC at the beginning, so it'd probably be limited to financial institutions.
You have a point, but nothing could stop them from changing the extent of its centralization at some point in the future.