Central bank digital currency (CBDC) development is picking up pace, but Coinsillium CEO Eddy Travia believes it can’t give users an edge over existing private crypto options, so its impact don’t worry about
coin silium is an open finance venture operator specializing in blockchain technology, especially non-fungible tokens, and the company expects more commercial uses, such as ticketing and data purposes, to be incorporated soon.
According to an American think tank, Atlantic Council11 countries have launched CBDC projects, 14 are conducting pilots, 26 are actively developing, and 47 are studying the concept.
Nevertheless, the issue remains highly divisive. Objections include how individual privacy is compromised and the risk of cyberattacks at the nation-state level.
Second Fiddle to Bitcoin
Speaking to Cryptoslate about the CBDC push and the associated restrictions on cryptocurrencies, Travia said political motivation is often unfairly swayed by negative media coverage of digital assets, which has led to more I mentioned that it seems to be gaining visibility.
This phenomenon can influence the thought processes of policy makers. In particular, one might see the industry as a snake pit to legislate or fight against his CBDC.
Travia hypothesized that the CBDC push would address the need for an evolving, future-proof currency while offering a high degree of control. This is not the case for private cryptocurrencies.
“They are looking at CBDC because, again, they feel it is something they can control and can impose certain rules on.”
However, Coinsillium’s CEO commented on China’s CBDC, saying the project was “not doing very well.” This is because existing established payment options such as Alipay and his WeChat Pay are very similar to the digital yuan from a user/front-end perspective. So there is little difference for the consumer.
Travia concluded that it could only play in a “small niche” in the future of money due to its lack of “clear advantages” over private cryptocurrencies.
“In a world of thousands of cryptocurrencies, where are the clear advantages for consumers, I think the niche that CBDC can play is very small.”
However, it could be one of the upsides in terms of competition between central and retail banks, and Travia believes this could be positive for consumers.
At the more extreme end of the scale, there is growing concern about CBDC as a dystopian tool. For example, Shapeshift CEO Erik Voorhees said: GM Podcast In February, it was labeled Orwell’s spy surveillance nightmare.
The matter was not helped by Agustin Carsen, general manager of the Bank for International Settlements (BIS).He recently said that the ‘soul of money’ belongs to trust and that only central banks can be trusted
Similar to Travia, Voorhees pointed out that CBDC is a repackaged fiat currency with no tangible benefits for users. Moreover, they philosophically oppose fundamental cryptocurrency tenets such as decentralization, transparency and trustlessness.
“Anyone in crypto doesn’t like CBDC. Anyone who understands the value of cryptocurrency doesn’t like CBDC at all.”