You have probably heard the word CBDC lately, right? What is CBDCs? Is a Central Bank Digital Currency in USA being introduced? Introducing the future of digital currency. Read further and know more about it.
Approximately 87 countries thinking about launching of CBDC as a digital currency. This will show that soon this centrally authorized digital currency change the game of assets. Here today in this blog post we’re going to explain central bank digital currency or you can say CBDC.
P.S.
CBDCs & inflation on the rise, it might be a good idea to go with a more “traditional” asset in these times instead, right?
==> See our Top-5 List of The Best Gold Investment Companies (USA edition)
What is CBDCs!?
CBDCs are simply a short word for Central Bank Digital Currencies. A central bank issues and creates digital currency known as a central bank digital currency (CBDC). CBDCs are intended to be more secure and useful than other forms of digital money. They also serve as a backup in case of an economic crisis.
One of the biggest advantages of a central bank digital currency is its ability to make payments safer and cheaper. This has the potential to increase financial inclusion and ensure that the financial system works efficiently. It also enables the financial system to become more secure and less vulnerable to hacks and fraud.
In addition to providing a more convenient and secure means of paying and transferring funds, they are likely to boost financial inclusion in the United States. As more people move into a cashless society, they need a better means of making their purchases.
Some countries, such as Australia, have already launched pilot projects that are experimenting with CBDCs. Others, such as Jamaica, are beginning to roll out digital coins. While it’s impossible to know the future of CBDCs, it’s clear that technology has the potential to transform the way we pay.
Whether the CBDC of tomorrow is a token or a physical coin, its most important function is to facilitate easier and faster payments. Merchants no longer need to pay the risk of holding an untraceable form of cash, as they can instead rely on the electronic tokens held in digital wallets. Moreover, the technology behind CBDCs will enable them to verify payments with a click. During the recent COVID-19 financial crisis, this feature was a major contributing factor in the rapid decline of cash use.
Although the United States is a long way from issuing a digital currency, the Federal Reserve is investigating the possibility of doing so. Meanwhile, other countries are following suit.
Types of CBDC
CBDC (Common Digital Currency) is a neologism, meaning “digital cash” and is a new technology that has gained significant traction in recent months. It is an alternative to fiat currency, providing a faster, cheaper transaction mode. However, there are legal challenges that users face when utilizing financial services.
Several countries are currently testing CBDC technologies. Some of these are Brazil, Mexico, Poland, and Spain. One of the first large economies to conduct a pilot project was China. Another was Nigeria. Meanwhile, many European countries and a few Asian countries are also studying the feasibility of this technology.
There are two primary categories of CBDCs in technological terms.
The first is a centralized system, with numerous entities managing a shared ledger. While this can work, it is not suitable for larger territories. A more efficient architecture would be a token ecosystem. This type of system would ensure universal access, and would probably be able to provide good privacy by default.
The second kind of CBDC infrastructure is an indirect one, based on the premise that multiple entities manage the ledger cooperatively. There are a number of ways to implement this model, including chip-embedded cards and mobile service providers.
It can facilitate the transfer of funds from one central bank account to another. With this system, money can be moved in real-time. To facilitate this, the currency is modeled as a fungible digital asset.
Another notable feature of digital money is programmability. This could enable smart contracts to execute any number of actions depending on platform software. These may include payments for interest or automatic code execution. Also, they may have constraints on automated code execution.
In addition to these factors, there are other technological features that can enhance the functionality of a CBDC. For example, a special token number can be used to restore value in case the device is lost.
The other major benefit of a CBDC is that it can act as a substitute for physical cash. In particular, a retail CBDC would allow unbanked individuals and households to access the financial system. The total amount of cash that consumers have available to spend can rise as a result.
To conclude, the development of CBDC has significant risks, and it is crucial that the government ensures that the system is robust.
Overall, CBDCs can be a useful tool to promote financial inclusion. They shouldn’t, however, take the place of physical cash. Rather, they should be encouraged to complement them. At the same time, it is important that the central bank stays on top of the latest innovations in the field.
As with any new technology, there are several factors to consider when designing and implementing a system. The design should be a reflection of the needs of both the user and the institution.
Dangers of Central Bank Digital Currency?
So, are central bank digital currencies dangerous? Well, there are absolutely risks associated with central bank digital currency. These risks include:
- Central banks can create more money than the free market economy can provide, which could lead to inflation and devaluation of the currency.
- The risks associated with digital currency are similar to those associated with fiat money, but they are magnified by the fact that its value is not tied to any physical asset.
- The central bank could create a digital currency that is so valuable it will become worthless, or it could create a digital currency that inspires confidence in the economy but is not backed by anything tangible.
- It is not as widely accepted as traditional forms of currency and not stable as traditional forms of currency.
- Financial institutions may lose confidence in their ability to store and transfer digital currencies because of their lack of physical value, which could lead to the failure of those institutions due to their inability to meet their obligations (this is often called “bank runs”).
Social Credit System in the US?
Those are some of the dangers, then there is also some even more dystopian dangers… like that it could be used to track everything you buy.
AND Not only that, it could be used to stop you from buying certain things that the government don´t want you to buy, for example to much meat or a maybe a “carbon usages” limit in general on your spendings…
The real sceptics of the CBDCs claim it is going to be used as a social credit system like the one they use in China to score citizen on their behaviour, where good behaviour gets rewarded and bad behaviour gets punished… Creepy dystopian future sci-fi movie deluxe, right?
Here is a realistic (video) example of how it could look as well:
So, what do you think?
Do you think they are going to introduce a social credit system in the US and would that be good or bad in your opinion? Do you think they will do it in other countries?
Please tell us in the comment section below this article!
Are Central Bank Digital Currencies Cryptocurrencies?
It seems that a lot of everyday people think that CBDCs are the same thing as cryptocurrencies, however, this is absolutely not the case. I do not blame you if you think that yourself, afterall, both cryptocurrencies and CBDCs are kind of a new thing, right? However, below I will explain the difference:
Cryptocurrencies Vs. CBDC – What’s The Difference?
Cryptocurrencies are digital currencies that you can use like cash to buy things and pay for services. They’re not regulated by any government or bank, and they don’t have a central administrator or clearinghouse. Instead, they run on blockchain technology—a decentralized database that allows users to verify transactions without relying on a third party, like a bank.
CBDCs (central bank digital currencies) are digital currencies that are backed by the world’s largest central banks. They can be used to make payments and store value like cryptocurrencies, but their value is determined by fiat currency such as dollars or euros rather than market forces.
Cryptocurrencies are more transparent and secure than CBDCs: Cryptocurrencies use encryption algorithms to secure transaction from being altered in any way, while CBDCs can be manipulated by governments or private entities who control them through fiat currency reserves. Cryptocurrencies also offer more privacy because there’s no need for an intermediary like a bank to hold onto customer data—it all stays on the blockchain and can be accessed by anyone who wants it.
CBDCs and cryptocurrencies are two types of digital assets used to store, move, and exchange value. They’re both decentralized and open-source systems that use blockchain technology to facilitate their transactions.
What Are Some Notable Features of Central Bank Digital Currency?
A digital currency is one that is stored electronically and used primarily for transactions between two parties. Central bank digital currencies are a type of digital currency that operates through a central authority.
Some key features of central bank digital currencies include:
- No need for a financial institution as the platform provider – eg. banks, credit unions, or online wallets – to hold the currency
- Security is enhanced as transactions are verified by a central authority
- Possible reduction in demand for physical currency as a result of increased adoption of digital currencies.
What is the future of Central Bank Digital Currencies?
There is much speculation about the future of central bank digital currencies (CBDCs). Some say they will become more popular and widespread, while others are sceptical that they will take off.
CBDCs are similar to traditional money, but they are not backed by anything physical. This means CBDCs can fluctuate in value, making them risky for investors.
Some experts believe CBDCs could become more popular if they are used as a way to reduce volatility in global financial markets. Others think CBDCs could be used as an alternative currency by people who do not trust traditional banks.
FAQs For Central Bank Digital Currencies
Q How is Central Bank Digital Currency different from cryptocurrencies?
Central bank digital currency is a digital token that is issued and controlled by a central bank. On the other hand, cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
For example, central bank digital currency is backed by the assets of the central bank, whereas cryptocurrencies are not. Central bank digital currency also has a fixed supply, which is determined by the central bank. Cryptocurrencies, on the other hand, have a limited supply and are designed to be deflationary.
Q Why Would a Company Want to Issue a Central Bank Digital Currency?
There are a number of reasons a company might want to issue a central bank digital currency. For example, a company might want to issue a central bank digital currency to raise money. A company might also want to issue a central bank digital currency to experiment with new technologies.
Q What Are Some Potential Uses for a Central Bank Digital Currency?
Some potential uses for a central bank digital currency include payments, remittances, and financial services.
Final words
So, do you think a Central Bank Digital Currency in USA is being introduced? AND do you think it can lead to a social credit system in the US being introduced? What´s your thoughts about this?
Please tell us in the comment section below! Also, make sure to share this as well if you think it´s an important subject.
Thank you for reading, and all the best to you!
Michael, founder of Goldretired.com
I don’t think the CBDCs will become a thing in the US. Those scenarios in the video aren’t very likely either, unless you got a tin foil hat on!
Thank you for your comment and for reading!
/Sincerely
Haha tin foil hat? Tell that to the Chinese people! Maybe you need a pair of new glasses?
Hey, I had heard about CBDC before but I didn’t has clear idea about what is it, you have described so clearly, and now I know what it exactly is. This central bank has too many advantages and the most important, I think is how sfe and cheap might be your payments. Such a great piece of information you have shared with us. Thanks a lot.
Thank you for you comment!
Thank you for an enlightening blog post about digital money. This is the first time I have read about CBDC.
I am not a US resident, but the question your raise in terms of both crypto and central bank digital currency is very interesting. I have heard, seen or read anything in my country about CBDC, but my government do not like crypto currencies. You are allowed to have crypto, and you have to pay taxes on it, but using it is prohibited…..
The principle behind CBDC is a good one in my opinion, but the fact that it doesn´t contain the same security for the user/holder of it as cryptocurrency has is not a good thing. Then I would rather stay with cryptocurrency.
However, being backed by a country´s central bank is “comforting”, even if it means that the bank can do “whatever” it will with the currency.
Based on your blog post I prefer crypto at the moment but will keep an eye out as it evolves.
Thank you for your comment!
Have to agree with you on that I prefer cryptocurrencies instead.
/Best
CBDC could be a nice thing but not in the hands of morons that are currently running the world. CBDC must be backed by some real life value like gold, otherwise they are just dust out of thin air. The programmability is definitely a no-no feature of CBDCs.
To go further, what is it that citizens want or need? Well they need a national money with ZERO inflation. Central Banks totally fail this objective by giving government idiots all the money they want and zero control afterwards. Now they take next step and come in power to control people. Come on! Freedom is what we want, we want a valuable money that we have confidence in for the future and definitely no idiot destroyng it. CBDC must only be a way to facilitate payments, nothing else. Any things beyond that is asking for schackles ans pain.
Thank you for your comment!
It is globalist money. As wef soros etc rigged the game to get in power those who wish to create a great society, a global government and usurp the sovereignty of white western judeo Christian countries (and take their wealth and birthright) they need to invade the country with their desired subjects, implode the government by making it ineffective and replace the dollar
Climate nonsense, diversity, metoo, COVID, Vax, etc etc are ask part of this
Cbdc are designed to take wealth and redistribute. Period. They can take federal reserve notes and make them with $.10 and this faker money make it worth a dollar.
Turning the dollar in to crypto is taking $10 of your life savings and flushing it
It is tied to so many objectives for ur globalist regime, you must write your gop congressman to get it outlawed
Cbdc will destroy your way of life and take your savings and make it worthless (plus the gov will spend even more trillions then just erase the old cbdc & mint a new one)
Btc (dollar) vs doge (cbdc)
No matter how you slice it they want to erase the federal reserve note to make everyone worth nothing and reset everyone’s wealth (except theirs) to zero
Thank you for your comment!
At this point, bring on the CBDCs. Those that know about privacy coins will be just fine. It’s tiring if not self harming trying to get normal people to see anything outside of their box (ie recent pandemic) Get more of those in the know into privacy, the normal person will catch up when it’s time for them to.
Thank you for your comment!
cryptocurrency of governments means you will,be 100% slave
1- they put restriction, what you can buy
2- they monitor you everywhere you go
3- they make timelimit for the money, if you do not spend it until certain time it will be zero
4- if you talk too much, they make all your bank account zero
happy slaves? accept it, like the jab, that 4 billion sheeple accepted and all will die.
you cannot fix the stupid. death will fix them.
watch Sermon 30 to learn how to FIGHT
Moses
https://t.me/GodMosesLaw
Thank you for your comment!
CBDC is a bad ´solution´ to a problem way bigger than the real resons stated for CDBC existence.
Why do we really ´need´ CBDC?
Before answering the question, let´s ask another: Who will ultimately benefit from CDBC?
Is it you who has never thought of CDBC before?
Or is it those who are pushing for its massive adoption / imposition?
Don´t be naïve, behind anything of this magnitude there are BIG interests who have created CDBC and have created the whole infrastructure to make it the new obligatory, mandatory currency.
For decades in video games we have credits, virtual money or coins, are we? In coinop arcade games, we exchanged 5 FF, 1 Eur coin, 1 USD coin, 1 BP coin for credits to spend in the games, this started more than 40 years ago. Then on video console and computers games, all the time using virtual money.
All this was made to prepare the spirits to a seamless change of monetary system which like games are international, global. Is this pure ramdom? Have you seen coinop cabinet games in wilderness? Video games consoles and games growing on trees lately?
Who is behind those converting and conditioning games?
Who is owning those video games hardware and software companies?
And what those games have done to the critical thinking abilities of players?
Who are behind all those gold and silver against cash shops all over the world?
You know those shops which have relentlessly removed from circulation all those gold and silver objects, coins, we could use to exchange in case of currency crash?
Is there a link between the digitalization of ´society´ and the digital currency?
Who recently was all over the airwaves in the US and over Ted and other video channels doing proselitysm for vaccines?
Who for a decade or more was all over the airwaves in the US and over Ted and other video channels doing proselitysm for the future virus ´pandemic´?
Who is this guy? What is the history of his family?
Ask yourself who benefits, who is behind, who got an interest in the change, who is pushing it north south east west for obligatory implantation.
Ask yourself, who has benefited from such big changes in the past, during roman times namely.
Who has paid for those changes?
Have the society and your ancesters life better through them?
If CDBC was really the solution why wasn´t it put in place since the 1940´s?
You know jews in germany concentration camps had also little codes on their arms, and a machine made by IBM called the Hollerith machine was used to read them.
Do you want to be part of this ´new´ experiment? ´Social´ experiment, as social as the lock downs, work from home and social distancing of course!!!
For what real purpose those same people push for CDBC?
Isn´t looking very much like a copy paste of the Hollerith machine?
https://www.jewishvirtuallibrary.org/hollerith-machine
Think, share and wake up!!!
Thank you for that comment!
With the roll out of CBDCs will be the end of humanity and free will as we know it. Free thinking comments like this will be flagged. Opposing folks will be sent to the gulag. Anyone that speaks up against or even thinks outside the box will – not only be labeled as conspiracy theorist, but also punished via the social credit system. (If you haven’t noticed yet almost all conspiracy theories turned out to be true.) You will have no control over your finances. If you want to give up whatever remaining rights you have left go ahead and accept CBDCs with open arms. Most people already gave up their bodily autonomy with the rollout of the Covid jabs. Wouldn’t be surprised if the same sheeple sign away their lives for CBDCs.
Thank you for your comment!
Please save us from brainwashed idiots like Darren (1st message above).
First things first, the video states “CBDC’s will mark the beginning of the end of human freedom”. This is not true. The beginning of the end of human freedom occurred a very long time ago! It is more accurate to say that CBDC’s will be the final nail in the coffin.
Please use cash whenever possible, and do everything you can to oppose this tyranny.
Darren, you may be a thick brainwashed idiot, but I will still fight for the your freedom, and more importantly, for the freedom of your children and grandchildren. In the meanwhile, please throw your television away and get off your ass.
Thank you for your comment!
This piece sets out the wonders of CBDC and hits them hard and often. . . ease of access . . efficient, . . . enhanced security. When possible difficulties are listed, the most important of these is noted briefly and effectively downplayed, Something that is one hundred percent certain to change our lives if implemented, buried in paragraph after paragraph of reasonable-sounding exposition. What might that sea change be? Here it is, in one of the points extolling the virtues of CBDC: ” security is enhanced as transactions are verified by a central authority.” I see. Which authority? Who will run this authority? Future governments comprising people I haven’t elected and am unlikely ever to met? Is this the sort of ‘authority’ we’re content to empower to “track everything (we) buy?–at point of sale and at the moment of purchase? More than that This central financial ‘authority’ will be notified the instant an attempt is made to purchase a service or item prior to the sale going through. Any purchase the buyer wishes to make will be potentially blockable even more so, more completely, once it is in universal use and there is no alternative to it. Would we feel easy at the prospect of a fiduciary and/or government authority whose decision is absolute, automated, and unchallengeable, potentially denying us the right to purchase any item, or service we might wish to make? Reasons need not be given for such a decision and probably will not be. But perhaps we will tell ourselves that government (all government, including those we haven’t met, yet) can be trusted to ‘do the right thing’ and respect our liberty to choose and live within reason as we have, more or less, to this point in our development. Tell ourselves that governments never use the legislation they pass to tighten control over the lives of their citizens. While I would admire the optimism of someone taking that view, I’d have to say that they seem to have been living on a different planet from the one I’ve woken to daily for these past three years. Please, have nothing to do with this easy-peasy invitation to enslavement. Junk the CBDC. It isn’t the snappier version of a debit card it might appear to be.
Thank you for your comment!
In a sense there already is, I think, a social credit system and the trend it seems to me also is toward more of it/furthering it…
Less power/control in centralised systems and more power/choice in decentralised systems is better/safer it seems to me.
Thank you for your comment!
Hello,
This is “central bank digital currencies (CBDCs)” is becoming increasingly important and relevant in today’s digital age. With the rise of digital payments and cryptocurrencies, many countries are exploring the potential benefits and risks of introducing their own CBDCs. You provide a good overview of what a CBDC is and why it is being considered in the United States.
And you present a balanced perspective on the potential advantages and disadvantages of introducing a CBDC in the United States. It acknowledges that a CBDC could bring benefits such as increased efficiency and financial inclusion, but also raises concerns about privacy and cybersecurity. This balanced approach is important for readers to fully understand the potential impact of a CBDC.
Additionally, it provides links to additional resources and news articles, allowing readers to further explore the topic of CBDCs in the United States. This is important because the introduction of a CBDC would have significant implications for the financial system and the economy as a whole, and it is important for individuals to be informed about these developments.
Overall, I like your way of presented in the blog post is important for individuals who are interested in the potential introduction of a CBDC in the United States and want to learn more about the topic.
Thanks a lot for sharing
SAM
Thank you for your comment!
Good article, but I don’t think that Bitcoin is not controlled by government. Where I live crypto exchanges have to report to the government and the person dealing in crypto has to pay tax on any gains. To go by the example of Nigeria where the CBDC hasn’t been adopted by the population I feel that it’s going to be difficult to introduce worldwide. The convenience is good, but so is the present payment system with cards and then there is also cash which still has its place. People need to wake up to what is going on, it’s simply a power grab and a way to get total control over our lives.
Thank you for your comment!
/Best