CBDCs (Central Bank Digital Currencies) Might Work? But They Will Never Overtake Real Cryptocurrencies

Written Date: April 21, 2021

Edited Last: May 22, 2021

Follow @indepthcrypto on Instagram!

https://www.instagram.com/p/CN7uaYVHHP6/

Hey guys!

Sorry for being a bit inactive, some life events have just been happening :/

But CBDCs, known as central bank digital currencies, are kind of a “secondary class” of cryptocurrency if you will.

They are digital versions of fiat currency such as USD, EUR, JPY etc., that act/behave extremely similarly to true cryptocurrencies such as BTC, ETH etc.

What’s the difference then? Well, CBDCs still operate with the same monetary policy as their “current” versions do. The whole goal of cryptocurrency is to allow everyone to participate in the financial world without concern of a single government being able to wildly destroy/affect the currencies that we need to survive.

Sure, having a CBDC might be better than carrying cash, or dealing with banks. But if the same USD (for me), can be affected by Trump’s/Biden’s excessive quantitative easing (money printing), why would I want to hold it? Just because I used to?

Deflationary currencies will always win in my opinion because why hold something that loses value?

__________

If you’d like to donate, you can reach me at

WAX: “indepthcrypto”

ETH: 0xf62a531Df54d016FB51698168f56EaB899a31430

Talking about advanced cryptocurrency topics/news.