It can be one of those eyebrow raising questions. Of course the debate is still ongoing, something that there is still enough room for time to tell. Some of us are in full support of decentralized ways. Easy to suggest and hard to implement if you will be truthful to yourself. The way the world is operated has always been in the foundation of 'control'. A wise man once said, without authority, men would fight and kill themselves. You can't doubt this, nevertheless, we have seen authority exploitation. This is something that you can't really blame the anti-centralization for.
Yes, many are fed up, you get napped by those you are expecting protection from. One of those things is taxing or to be more precise, 'overtaking'. How painful it can be that the government keep slicing into your little pause. They take it even before it reaches you and digital currencies have made this that easy. At least no one taxes you for offline payments (cash at hand), an advantage I must say really for the wages markets. The government is stepping up. Is there a need to make everything taxable? It depends on where you fall into; 'the taxer or the taxee'.
Since the inception of cryptocurrencies, we have seen new ways of doing business and cutting off several middle-men and taxation. Many said this technology will not fly but it has gone beyond flying to soaring. Will the government leave what is soaring to the masses? How then can they stay influential? Let's first consider what happened with Bitcoin. What was it's white paper mission?
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At least a summary would be a decentralized way of doing transactions. Where is it now? Ask Wall Street, transactions are still ongoing. In short, as we speak, it seemed bitcoin is the only performing crypto asset and yes, it is NOW under a cage.
Here comes CBDC (Government Backed Digital Currency), does it have a future? Let's leave sentiments for now and look at underlying facts. If the government can turn what was first conceived to be decentralized to operate centralized, won't they put it into operation? Even you would. This is something that is worth considering, where is the future of blockchain tech in terms of transactions especially heading to? From here, it seems the old ways. They are the ones that pay the masses and they can decide 'the how' payment can be made. Did developers just create easy taxing tools to ease the government of their tax operations?
Another thing here to consider would be how secured the CBDC blockchain can be. I have read several articles concerning this yet I have to ask this question, how vulnerable can this chain be?. Of course it will be a honeypot for several hackers. We know how the banks operate in a country, we have the central bank that heads in ALL transactions yet commercial banks are in there to balance their sheets. It is like operating a multiple ledger to avoid direct or indirect fraud. So how will it look like when CBDC takes charge? Of course, more like depending only on the central bank.
The advantage can be easy documentation and financial tracing while the disadvantage remains, 'hackable'. I am a little confused and curious here. Who will be doing this hacking? Individuals or citizens perhaps. What will they be hacking, CBDC; a traceable asset runned on centralized chains. So how will this hacking be of any fruition to it's hackers? Ok, let me TRY and explain this using the Fiat notes.
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A bullion van that carried newly printed notes just disappeared and the government sent out an alarm that any current note that carries currency number from so and so to so and so is deemed counterfeit, what use then is the spoils for the one who stole it? The markets will reject it, everyone selling at both local and professional market will be keeping its eyes on the look with reports concerning who and who brought such cash for transactions. Yes I know, the less informed will suffer the counterfeit consequences (not at government loss you should know).
So how will this money be able to leave a centralized system without prepor tracking? Secondly, can't the government dust a transaction in the process?. We have seen how chains are dumped and new ones are formed, the requirements will be to show up for verification, you know what this means right?. Of course such procedures can be boring and time wasting.
This is where I am seeing how artificial intelligence (AI) can work for government favor here. One may say the hacker can Split this money into several accounts or perhaps even dash it out to hundreds or thousands or public user addresses. Can this recovery strategy be difficult for AI to execute? This is all about 'freezing and tracing' to recover. Is anyone seeing this with me or is it just suggesting illusions?
To conclude, let me add, I feel there may be an undeniably future for CBDC despite the fact that we may not love such news. How we keep dreaming to escape the centralized system. Nevertheless, we have to admit that those in Power will keep doing everything possible to stay in control. The first of such example is how bitcoin has been lured back to the old ways.
Posted Using INLEO