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Central Bank Digital Currencies (CBDCs) Are Back in the News

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@cryptictruth
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Crypto markets have been volatile with the recent implosions of Terra Luna, Celsius and now it looks like USDD/Tron might be in trouble. With all the bad news the Bank for International Settlements (BIS) has come out criticizing decentralized currencies while pushing for CBDCs.

The BIS is the global umbrella body for central banks. The fosters international monetary and financial cooperation and serves as a bank for central banks. BIS pointed to recent collapses of the TerraUSD and luna 'stablecoins', and a 70% slump in bitcoin as indicators that a structural problem exists. What structural problem is that? They think without a government-backed authority that can use reserves funded by taxes, any form of money ultimately lacks credibility and therefore will fail. My opinion, is central banks are scared to lose power to their decentralized counterparts so they plan to kill the decentralized markets while building and pushing CBDCs. I don't want to get too far down the rabbit hole into conspiracies in this post, but maybe central banks were behind this crypto winter and Terra Luna's collapse.

BIS said they have pointed out all the weaknesses in this market and now they have pretty much materialized. Analysts estimate that the overall value of the crypto market has slumped more than $2 trillion since November as we get new FUD almost every day. Their solution is centralized around CBDCs which is its vision for the future monetary system. This future is one where central banks utilize the blockchain benefits to create digital versions of their own currencies.

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To put it into perspective, approx. 90% of monetary authorities are now exploring CBDCs as a way to keep control and equip them for the online world. BIS wants to coordinate key issues such as making sure they work across borders aka centralize the system which would be even more centralized than current fiat legacy systems. Think about that they want a CBDC that would work for China, Russia, and the USA which seems like central banks want to control the world! I think CBDCs sound pretty terrible considering centralizing that amount of power is crazy. For example, if your country had CBDCs only and the powers that be sanctioned this country they could liquidate and freeze all money with a few lines of code.

I will always be a person that advocates for decentralization as it fosters more open development, less corruption, and benefits the people - not governments.

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