The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy. The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.
I don’t know about that. But the use cases for bitcoin grows naturally, as time goes on it gets more popular and a lot of people will continue to make use of it. So I don’t think it is something that will have to do with whether the government will create a CBDC or not. If we have to talk about these two, they should be discussed separately, as both can’t really have much effect on another, since they are on two different lanes. As for CBDC, since there are people who still believe in fiat, they will make use of it. But I’m yet to understand what’s happening with this CBDC and how it is work.