Do Not Worry About A CBDC From The Fed
(Edited)
CBDCs are all the rage right now. The challenge is that not all fiat currencies are alike. While China is pushing ahead with their project, one which will likely be successful, many think the US needs to do that to protect the reserve currency status.
In this video I discuss the problem with this view. I also delve into how there are obstacles for the Fed and reasons for NOT doing it.
That said, it is likely many other countries go in this direction.
▶️ 3Speak
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I think it's should be possible for China nut us need to do something about it
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We are not afraid of them at all. I think when they enter the world of blockchain, they will be in an arena other than their arena, the advantage will be ours
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Summary:
In this video, the speaker discusses the rise of Central Bank Digital Currencies (CBDCs), particularly focusing on China's advancement in implementing a CBDC for the yuan. He delves into the challenges and potential threats CBDCs pose to the US dollar as the world's reserve currency, emphasizing that the widespread adoption of CBDCs, especially outside China, may not be as feasible as some suggest due to existing infrastructural and geopolitical limitations. The speaker highlights how CBDCs could offer governments greater control over currency and how negative interest rates could be a potential consequence. Additionally, he discusses the implications of countries like El Salvador adopting Bitcoin as legal tender and its impact on the US dollar. The video wraps up with the speaker underscoring the complexities surrounding the US dollar and the potential hurdles in transitioning to a CBDC system.
Detailed Article:
The video begins with an exploration of the global shift towards Central Bank Digital Currencies (CBDCs), with China leading the way in implementing a CBDC for the yuan. The speaker notes the digital nature of most transactions today, highlighting China's advanced usage of mobile apps and payments. However, he questions the global adoption of China's CBDC outside its borders, citing potential limitations in interest and trust from other countries and entities.
The speaker then delves into the perceived threat of the yuan to the US dollar as the world's reserve currency. He outlines the challenges faced by the US in potentially transitioning to a CBDC system, including the significant number of US dollars circulating outside the country, especially in second and third world nations. This widespread circulation of physical dollars plays a crucial role in maintaining the US dollar's status as the reserve currency.
Furthermore, the speaker emphasizes the potential risks and controls associated with CBDCs, such as negative interest rates and governmental intervention in payments. He discusses the motivation behind pushing for CBDCs, which could stimulate spending but also raise concerns about economic implications and favoring large corporations.
The video also touches upon the impact of countries like El Salvador adopting Bitcoin as legal tender, posing challenges to the dominance of the US dollar. The speaker expresses skepticism about the feasibility of other countries swiftly transitioning to CBDCs, citing infrastructure and trust issues.
In conclusion, the speaker underscores the complexities and variables surrounding the US dollar and CBDCs, suggesting that while other countries may move forward with CBDC implementations, the US faces unique challenges and considerations in potentially shifting to such a system, given its role as the world's reserve currency and the widespread circulation of physical dollars globally.