Why it will be a long time before you see a CBDC
Why it will be a long time before you see a CBDC
Quote of the day "Knowledge is power, but creativity is more powerful"
There are 2 reasons why you will not see a CBDC for everyday retail use in the near future. My source of information is Mark Carney, previously governor of the Bank of England.
Central banks don’t know if they want to delegate to banks or manage themselves the database, tracking who gets the CBDC. When you ask central bankers if they want to use the CBDC to give money in a directed way, the answer is “yes”. However when you ask them if they want to manage and secure the list of people who received the CBDC, the answer is “uhhh, don’t know, I will get back to you”
Central banks have not decided if you will be able to exchange the money in your bank account for CBDC, because they are not sure if they want to legitimize money created by banks through lending. This is the most fundamental question they must resolve. If you can not exchange the money in your account for CBDC, then there will be 2 national currencies, which do not have the same value.
For these two reasons, I have preferred stable coins. Furthermore, the private sector always moves faster than central banks. However stable coins currently have the growing pains of an adolescent, so maybe CBDC will catch up. Stay tuned. As Alex Poltorak says in a recent podcast, he thinks stable coins will split into two different categories, those offering permission-less, censorship resistant payment rails, and those that comply with requests of regulators. The second category will probably be superseded by CBDC.