If anything characterizes governments, it is competition. In the 1960s it was a race to see who could get into space and land on the moon first; now it is a different, more down-to-earth race. Now it’s a race for the top spot in CBDC, the central bank’s digital currency. It is a thrilling watch. Let’s take a look at how the various participants are doing.
The CBDC race
A quick reminder of what CBDC is: it is a digital form of central bank currency that we now have in paper form around the world. Governments are realizing that they need to act fast and the increasing competition from cryptocurrencies could bring them a lot of trouble. That’s why they have tuned into their wave, exploring blockchain and looking for ways to use it for their digital currencies.
Leading the way is China, which already has a pilot program in place, has handed out red envelopes with digital yuan, and continues to explore the benefits of digital currency. It should be noted, however, that this battle will once again be fought by the most influential countries in the world, regardless of the fact that digital currency has been around for a while.
Is it just about money?
But this battle for the best CBDC will not solve the problems that have been plaguing humanity for decades, it will not solve the debt and it will not heal the economy. It is essentially a battle of control. We know from China that it is impossible to exist without AliPay and WeChat. These are two apps that are state-owned, and the people of China cannot get enough of them. Once a similar situation arises where one app wins the hearts of the majority of the population of a country, we can start talking about the power over people’s money.
This race is inevitable. However, not everyone agrees with the idea of their money being searchable and traceable from the beginning of their lives to their demise. So these people choose to find alternatives that will help them achieve their goals. One of these alternatives is cryptocurrencies, and if you’re wondering how they work and would like to maybe try some cryptocurrency, we can offer you our PlatonCoin (PLTC). Leave us a message for more information.