Post
Topic
Board Economics
Re: Central Bank Digital Currencies: a Threat or a Blessing?
by
deisik
on 22/07/2020, 11:28:11 UTC
If CBDC can somehow make remittance and international commerce easy and cheap, we will lose these markets. Since we already lose the "buying coffee" market due to the scalability problem (the so-called trilemma), the one who stays here will be the "e-gold" and the gambling market, and it's niche

That's a topic for a different article

Bitcoin has lost this battle because it is "good money" (and fiat "bad"). So even if we removed all technical obstacles like confirmation times and transaction costs as in free and instant transactions for all, this wouldn't mend matters. People would still continue to hoard bitcoins, and probably even in larger amounts

And personally, I don't believe that with a CBDC you will be able to make cross-border payments like you can with Bitcoin, i.e. without any limitations. If we assume that, it would mean that central bankers went nuts. They will never let go of this milk cow and handcuffs that international remittances are