Wednesday, April 5, 2023

CBDC's are Important and the next evolution of FIAT

Unpopular opinion but I had this discussion with the Magic Eden founder among others during a Solana Hacker house event in Bengaluru, India late last year and i sort of have to write this cuz i see a lot of people have issues with CBDC's.

we would all like governments to embrace crypto, no question about it. but which one?

which one would you like the Indian Government to use, or the US government ? of the entire lot i could only think of Bitcoin and even then there are red flags. for my personal wealth it's all good to use bitcoin and "invest" in it , but for an entire country it's very risky. Kudos to the Salvadorians' and their president who went ahead with it. Choosing any other crypto would be a bad idea cuz it's all private just like the banks and the founders become extremely rich off public money if they launch CBDC's on their chains with government agreements.

for the governments' to be on the blockchain it has to be their own, with public accountability that pretty much rules out all crypto. so it has to be CBDC's, their own systems. (weather it's CBDC's or crypto banks are pretty much done) The fiat standard world wide is over a century old, incase of the British Pound it's even older (300 years). this system moving ahead needs an overhaul and CBDCs' are it, first major upgrade to money in centuries.

I understand we are all worried about the drawbacks of programmable money, but if you trust your governments (hahaha) then this is a tool they need. the Public expenditures in India and the US are in the billions with very little oversight and often take months to settle issues, scams and Audits, the amount of money scammed off the Exchequer by vendors and contractors is enormous and CBDC's can mitigate that in one shot, easier said than done but it can happen. the trillions spent on the Afgan war could have been very different if it were CBDC's with the possibility of reversing certain transactions. Corporations should be afraid of CBDC's if the government is doing a good job.

also finally the next wave of liquidity into Crypto will be thanks to CBDC's acting like a trojan horse. The courts are there to reign in the governments when they overstep, all democracies have tools in place to check overreach.


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