The digital currency market is on a constant growth. With time, the number of investors have increased in the world of cryptocurrency as it grows.
Central Bank Digital Currencies has been a brand new inclusion in the world of crypto. The need for a universal electronic payment system for stimulus checks gave rise to a proposition for the creation of a digital dollar and its implementation in the United States.
Central Bank Digital Currency have been in the works for many years in some countries. These currencies are majorly the digital version of fiat currencies.
China leader in Central Bank Digital Currencies
China spearheads the Central Bank Digital Currency. The People’s Bank of China’s National Council for Social Security announced the completion of the backend architecture development for the digital yuan.
While China and the US are in the lead, many other countries are still at a developing stage.
However, there are a lot of concerns surrounding the CBDCs, with the major surrounding its privacy. Tony Vays said that it might be the first step towards demonetization with no added benefits like Bitcoins have. The following is his assessment as told to Cointelegraph:
“These new digital dollars will still be confiscatable, and they will still be censored if the banks want them to be, so nothing changes. It’s all about the elimination of cash, and the sooner that happens, the sooner Bitcoin will shoot to the moon.”
Some fear that the digital yuan and even other CBDCs can become part of some social scoring system like the one currently used in China, as per the report.
CBDCs seem to pose a serious threat with a chance that they might see the downfall of paper currency.