Ways to exchange CBDCs for crypto

[MrSpasybo 1049]

"The concept of CBDC has emerged as one of the biggest trends in monetary policy over the past two years, with countries like China and Sweden piloting digital fiat currencies. In mid-November, Deutsche Bank, the largest banking institution in Germany, predicted that CBDCs will replace cash in the long term.

Speaking at the Singapore Fintech Festival 2020 on Dec. 9, Buterin said that he expects a lot of ways to exchange CBDCs to cryptos like Bitcoin (BTC) as well as other digital tokens."

Article: Vitalik Buterin expects lots of ways to exchange CBDCs for crypto

We have recognized that stable coins are not objects to invest or trade for profits, but they are the perfect tools to protect crypto assets when the market fluctuates and makes it easier for everyone to enter the crypto market.
Thus, stablecoins are seen as a bridge between the traditional economy and the crypto economy.
CBDC is essentially the stable coin of each country. Temporarily ignoring the risks associated with the control of governments through their CBDCs, let's look at the values CBDCs bring to the crypto world.

First of all, from my point of view, I don't see CBDCs as cryptocurrencies, because they have not yet escaped the manipulative hands of the government. However, CBDCs are able to reach more users, helping them understand the value of crypto in relation to its high speed and low transaction costs. If traditional banks or crypto exchanges support CBDCs and cryptocurrencies simultaneously, everyone will be able to access and own crypto easily by directly converting assets in CDBCs to assets in crypto.

I don't think that governments will use existing blockchain platforms to develop CBDCs, they will create a blockchain on a small scale that is controlled by the server system of local banks. But cross-chain exchange platforms will maximize efficiency to make the CBDC/crypto swapping/transaction easy.

[zhoutong 2188]

First of all the cbdcs are just beginning and we don't know if they will become dominant as fiat money. If they do who tells us that we will have any freedom at all to use them to buy cryptocurrencies. Perhaps there won't be any authorization to move them in unregistered wallets. Most countries would see them as precious assets to keep control of their citizens and restrict any transactions from a cbdc wallet to a crypto exchange.

[nykas 2812]

CBDC is definitely what we need now. If governments try to develop own blockchains and crypto coins, it will let attract more new people to the cryptocurrency world and already existing projects will become more popular, because more people will know about crypto and blockchain

[Sykkuno 2887]

A Cbdc doesn't mean there will be need for blockchain as others think, or that it will be a cryptocurrency as we know them. It doesn't mean it will be decentralized like Bitcoin. Being happy for a Cbdc is a big mistake some people are making. This kind of digital currency is completely opposite to Bitcoin, it will be the exact same fiat without any anonymity the paper cash offers.

[Fixfin 2569]

The Ukranian government hired Stellar to be the developer of the CBDC of this country, and important step that shows the level of techinal knowledge on blockchains possessed by experienced cryptocurrencies is higher than anything governments have. 

However Vitalik suggested there should be ways for CBDCs to be traded for crypto something that perhaps means he has knowledge now about the Chinese CBDC and the plans for the new ones that are coming.

[Abdulrahman3 1252]

Russia's entry into the field of cryptocurrencies and its adoption of it with this strength will positively affect its future economy significantly, today the global economy is changing in form and content, and countries that do not deal in cryptocurrencies will find themselves very late in the next 10 years.

[yonkii 3205]

On 12/9/2020 at 10:47 PM, MrSpasybo said:

I don't think that governments will use existing blockchain platforms to develop CBDCs, they will create a blockchain on a small scale that is controlled by the server system of local banks

Yes perhaps this could happen, and maybe there won't be allowed wallets to open without having done KYC and having being registered in the central bank first. I don't think there will be a decentralized blockchain that governments will use, or perhaps create, but it will be centralized and under control, with no anonymity at all.

[Mr john 12]

Recently, more and more news began to appear about the development of a digital currency by some national bank of the country. China is still leading this race. But what is Central Bank Digital Currency (CBDC), why was it invented, which countries are developing CBDCs, etc.? Let's find the answers to these questions.

[MrSpasybo 1049]

On 12/28/2020 at 5:37 PM, zhoutong said:

First of all the cbdcs are just beginning and we don't know if they will become dominant as fiat money. If they do who tells us that we will have any freedom at all to use them to buy cryptocurrencies. Perhaps there won't be any authorization to move them in unregistered wallets. Most countries would see them as precious assets to keep control of their citizens and restrict any transactions from a cbdc wallet to a crypto exchange.

Your idea is great, maybe the CBDC is just a way for the government to bring fiat on chain & destroy crypto. If so, the government would also not allow users to use CBDCs to invest in crypto. With CBDCs, the government will control the cash flow more easily, they will be able to intervene in the CBDC-crypto interaction with tax regulations, on asset declaration...