Vitalik- Decentralized Currency is Better than Central Bank Digital Currency (CBDC)
With the increasing amount of governments launching their digital Currencies so there can be some assumptions over the worry that crypto won’t be able to compete with national financial infrastructures.
Well nothing like this is going to happen says Ethereum co-founder Vitalik Buterin while he spoke with Block TV’s podcast on the 4th of March regarding his predictions for the future of the currency including the decentralized system.
According to him, the digitalization is inevitable and decentralized currency is likely more favourable to many of the state-controlled Central Bank Digital Currencies (CBDC).
As Vitalik sees digitalization as inevitable he although sees privacy as the king and believes that without the blockchain technology, digital currencies will act like the mainstream adoption.
While continuing this Vitalik compared the three existing sovereigns, corporate and decentralized types of currencies and said,
“The main challenge with a central bank and even corporate currency is basically the concentration of power, the concentration or data collection — that you become dependent on potentially central intermediaries that can exercise a very fine-grained degree of control over who has the ability to participate in these systems and who can’t.”
In the meantime, as it was previously reported the Digital Dollar project is already working on a digitalized framework so as to establish a dollar-based central digital currency in the United States.
While China is also not behind in the race and is preparing for DCEP which stands for (Digital Currency Electronic Payments) back since 2015 and they have been already planning for its real-world test.
But the thing that is to be noted is that most of the Central banks have globally admitted that Facebook’s Libra currency has forced them to take digital currencies on a serious note as an initiative to replace cash.
