CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
The World Economic Forum Took Place Last Week And One Of The Main Talking Points Of The Entire Event Was Central Bank Digital Currency (CBDC) - Most Of The World's Major Central Banks Are Investigating Or Undergoing Plans To Launch Their Own CBDC.
The interest at last week's World Economic Forum (WEF) comes after months of discussion out of China, the US and now a broad range of countries including Canada, the UK etc... The interest is such that they're now referred to by an acronym (CBDC) and at the WEF an international consortium was announced to study governance frameworks. The consortium included quotes from Central Bankers of Bahrain, Kenya, Singapore, Egypt among others from the private sector. Its work will also include general research on existing cryptocurrencies and the relationship between sovereign and private coins.
Crypto Takeaway: While this discussion has been building we have consistently said that CBDC is not a cryptocurrency and in fact serves the opposite purpose. Tokens like bitcoin allow users to be solely in control of their currency. The clearest use-case of CBDC is eliminating cash, tracking citizen buying behavior and other examples that give governments more information and control. Were broad roll-outs of CBDC to happen and cash usage to aggressively shrink, the most significant impact would be on the black market. That's not only in clearly illegal industries but the sizeable 'under-the-table' payments seen in services, trades, etc... The question becomes what payments to do these industries migrate to and whether bitcoin and other crypto is suitable to their needs. Regardless, were any transition that eliminates cash to occur it would certainly be a longer-term, perhaps decades-long, story.