For everyone looking forward to the US CBDC to destroy bitcoin and cryptos

[johnarb]

Here's a good video outlining the challenges of the Fedcoin destroyer of bitcoin

Below was my inarticulate take on CBDC

US CBDC (Central Bank Digital Currencies) is just an electronic form of the USD but instead of having an account with say Wells Fargo, you will have an account with the US Central Bank

You get your stimmies faster, but perhaps it is not possible to transfer it to your Robinhood account or if work around it through intermeidiaries, i.e. sending to your cousin, you may not get future stimmy checks

You may be able to use your CBDC with your landlord as it's most likely he/she also has a CBDC wallet

You may not be able to use it at Whole Foods but Walmart probably will have a CBDC wallet. Idk, just making shit up, since CBDC has not been released yet

Certain people will get negative APY on their CBDC wallet to encourage spending or slowly lose balance, while others get a positive APY to encourage savings

Incumbent banks will not like CBDC wallets where they are not part of the game so they'll insert themselves in the process to get their cuts, one way or another, but then we're back to our current banking system/debit/ACH

Idk, I'm just trying to repeat what I read here and there

But what would you do with it? same as your USD. It's not a digital investment asset like bitcoin

 

[Good1]

Who would mine that coin?

 

[johnarb]

Who would mine that coin?

I don't think it will be a mineable coin. It's a centralized coin so the Fed will just increase the circulating supplies as needed

China is already experimenting with their CBDC

I'm guessing any USD that would come from the USG would be using CBDC (i.e. Stimulus checks, IRS refund, etc) and any USD due to the Federal government would be payable in CBDC/Fedcoin, i.e. taxes

My question would be if I have $100K in the bank, what would entice me to convert it to the CBDC wallet? Maybe an interest APR equivalent to the CPI, but that could drain a lot of the savings account balances held in traditional banks and may cause a banking crisis? I'm not an expert

And CBDC, even if they give a high APR, does not sound like it's worth it, if total government surveillance or "social score" is part of the package. Imagine going to the strip club and making it rain, only to find out you're punished the next day and your account is suspended for 2 weeks, lol

Or how about you buy cigarettes and liquor and lottery tickets a little too much and trigger a monthly threshold that you won't be able to use any more CBDC's on those categories and can only use for groceries and restaurants for the next month

Consuming too much environmental wasteful products such as purchasing a monster truck and now your ESG score needs to be lowered before you can purchase on non-compliant ESG goods and services?

More and more the current USD that we have sounds much better than the future US CBDC

 

[destriero]

Nobody uses crypto for POS. Sure, stablecoins would be rendered moot but it only enhances the allure of crypto as an asset.

 

[maxinger]

go ahead and destroy the bitcoins and cryptos.

it doesn't matter much to the traders.
just look at the micro BTC futures.
the volume is still very minute.

 

[MrMuppet]

go ahead and destroy the bitcoins and cryptos.

it doesn't matter much to the traders.
just look at the micro BTC futures.
the volume is still very minute.

This is the second time you're stating this. I wonder why anybody would pay attention to CME crypto futures? They are a dead product and will always be.
Anyone who's serious about derivatives trades crypto native derivatives. Better margining, better risk management, automated margin calls, superior products.

It's probably nice for US - retail since those guys can't trade crypto native derivatives, but their volume is miniscule. The big boys trade through offshore entities.

So if you want to have a look at futures activity, look at FTX, Kraken, Binance and for options check out Deribit.

CME, BAKKT, etc. is all dead meat in this market

 

[jocrape]

@johnarb It cracks me up how the government believes that these centralized digital currencies will solve the problems imposed by bitcoin by replicating the features of conventional financial systems. Why would we choose one form of centralized currency over the other form of centralized currency?

 

[MrMuppet]

@johnarb It cracks me up how the government believes that these centralized digital currencies will solve the problems imposed by bitcoin by replicating the features of conventional financial systems. Why would we choose one form of centralized currency over the other form of centralized currency?

exactly right

 

[koczeau]

@jocrape doesn't make any sense to me as well, A CBDC for what? Tell me why I shifted from fiat to Crypto in the first place, to make sure my information and transactions are secured and unreachable to a third party or a centralised body. A CBDC is exactly the opposite of what cryptocurrency means to people. And they blindly believe they are going to destroy BTC and other cryptos. Unbelievable!

 

[johnarb]