If CBDC use public blockchains, transparency could be a big plus, but that’s precisely what some parties may not want. Governments tend to prefer systems that give them more control over true decentralization. So while the idea of a CBDC sounds appealing, it will likely be more akin to an open banking system that remains under tight regulatory control.
I understand. But why not use Zero Knowledge Proofs instead? Some public blockchains use ZKPs for true privacy (eg: Zcash). Governments can hide their utmost sensitive information through the use of ZKPs, while obtaining all of the main security benefits of public blockchain networks. Or they can just make their own sidechain linked to a secure public blockchain network (eg: Bitcoin or Ethereum). Only if they're serious in integrating crypto/Blockchain tech into mainstream finance.
Governments can also create their own centralized system that doesn't make use of a Blockchain. Just like how Elon Musk's "X Money" payment system don't use Blockchain tech. So there's that. We'll have to see if crypto/Blockchain will be able to live beyond the hype. Without real use cases, it will be doomed. Here's hoping for the best.
