Quote from: jaysabi on Today at 05:30:32 AM

Quote from: Quickseller on Today at 03:09:23 AM

Quote from: electronicash on October 16, 2021, 04:56:56 PM

Quote from: Bitstar_coin on October 16, 2021, 04:30:41 PM

Perhaps we should first find out how effective the China cbdc so far since it was launched then you can draw up some ideas what will happen in other countries if cbdc is introduced,
To me it will same as any other government owned project which is heavily centralise and control the people, however, if people are given the option to choose between cbdc and other crypto, many people won't bother about cbdc.

it's not up for the people to chose but the government. if the government of the country will have their cbdc, the people in this country will use cbdc obviously. you can only wish they allow crypto as well.

china will have the advantage to dominate in the future because they are the first to have a working cbdc

This is wrong, see my above post. Adopting a CBDC will prevent commercial banks from being able to lend, which will prevent companies and individuals from being able to borrow money, which will grind their economy to a halt.

I would love to see China try to implement a CBDC, as it will delay or even prevent them from being able to take over the world. China wants to issue a CBDC in order to impose further control over their citizens, but I believe this will backfire spectacularly.

Stable coins currently have a certain level of risk, (as do bank accounts with commercial banks), and this is not the case with accounts with the central bank.

There's nothing about a CBDC that stops lending based in the CBDC. It doesn't even prevent fractional-reserve banking. If anything, it would give the government a lot more information about the level of money supply expansion in real time as the all the data would be available as it happens. The information would help inform monetary policy.

A CBDC means that citizens would have no reason to store any money in their bank account. A CBDC would allow citizens to do everything their bank account does via the CBDC. Banks would still have the ability to engage in fractional reserve banking, but as citizens withdraw their money in favor of the CBDC, banks would be unable to lend out money, as they would have no money to lend.

When a bank lends out money, they have to have actual money to lend. With fractional reserve banking, the bank assumes deposit holders will keep some of their deposit with the bank until the loan is repaid. Also, borrowers often deposit their loan proceeds with the bank giving the loan (or it will at least stay in the banking system). If deposit holders withdraw all their money, the bank wont have any money to lend.

Without a CBDC, the only way to remove money from the banking system is to withdraw cash from your bank account. If you have hundreds of thousands of dollars, or millions of dollars (or more), this is not really feasible, as protecting these amounts of money is difficult/costly.