Chancellor answered the highly anticipated question in an interview with Reuters.
Will CBDCs kill Bitcoin? Edward Chancellor explains!
Finance historian, journalist and investment strategist Edward Chancellor believes Central Bank digital currencies (CBDC) will eventually kill Bitcoin. Chancellor says digital currencies are not stable.
Central banks are exploring digital currencies
These days, Japan, the US Fed, The ECB and central banks of many leading economies have begun researching digital currencies to develop their own CBDCs.
The People’s Bank of China (PBOC) is testing the actual use of the digital yuan (aka PBOC) by consumers.
Will DBDCs be Bitcoin “killers”?
Finance historian noted that CBDCs are easier to “print” and distribute than cash, and the initial issuance of CBDCs will likely increase inflation.
However, after the first stage of inflation, the central bank He thinks that his banks will follow a fixed emissions policy towards CBDCs, which will probably be a more generous figure than the 21 million BTC supply.
Bitcoin will die if banks do the CBDC job right.
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The famous historian likens the subject to the era when coins were replaced by paper money. At first, banknotes could easily be converted into gold or silver coins.. But when banks decide to pursue a higher emissions policy, the job of conversion disappears.. As a result, paper money completely dominates the market.
Chancellor believes that the same process will be experienced in digital money.. Of course, the digital currency he means is not Bitcoin, but CBDC.. Once they dominate the market, there will be no room for Bitcoin.
Chinese CBDC Alipay and WeChat Pay’ i will back up!
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