As crypto gets more popular and usable, governments are working on their own version of a token. These are called the CBDCs, which will be controlled by the authorities. Almost all major countries are exploring Central bank digital currencies due to blockchain’s future scope and potential. Many countries like Nigeria have even started testing their CBDCs and might even release them soon.
The popularity of CBDCs in all major nations
According to a report from the Cointelegraph, countries representing more than 90% of the world’s GDP are planning to build a CBDC. As of now, 81 countries are working and researching about the subject, and 5 of them have already been launched and are currently in use. All the active CBDCs are in the Caribbean region and are a digital version of their native currency.
At the same time, we have 14 more countries where CBDCs are in their pilot stage and could launch anytime soon. Nigeria is one of those countries where there is a possible date of launch. All the Central banks in the US and UK are also doing research on the same for several years now. The government believes that CBDCs will be able to help them fight crime in the financial sector. Some even believe that it will be able to compete with Bitcoin and other popular tokens.
Why are CBDCs not appealing to crypto enthusiasts?
When crypto enthusiasts buy Bitcoin or some other cryptocurrency, the main idea is freedom. Governments have long been controlling the financial lives of the people, and with decentralization, that can be changed. CBDCs are just going to be another way for the authorities to keep control. They can make new tokens that will create inflation; they can stop prices from going up or low by having circuits. All in all, even though it is blockchain, the purpose is destroyed. The only good thing about CBDCs is the adoption that we can expect them to bring as more people start using crypto. I would still bet my money on Bitcoin than any form of central bank currency.
What are your thoughts on all major countries are exploring Central bank digital currencies? And do you think this is going to drive adoption in the sector? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.