As governments increasingly consider launching their own digital currencies, many people will probably worry that cryptocurrencies can't compete with national financial infrastructure.
“Not so,” said Ethereum co-founder Vitalik Buterin. Buterin had an interview podcast with Block TV on March 4 to discuss his predictions for the future of money – namely the fate of decentralization.
He stated that digitalization is bound to happen and that decentralized private currencies will benefit more people than a central-controlled central bank (CBDC) digital currency.
Digitization is inevitable and privacy is king
Vitalik believes that with or without blockchain technology, digital currencies will continue to go mainstream.
Vitalik also compared the 3 existing sovereign, institutional, and decentralized digital currencies and pointed out the challenges that CBDC is facing:
"The main challenge for the central bank and even the organization's currency is basically the centralization of power, centralization or data collection – which makes centralized institutions able to control the participating individuals. "
Vitalik predicts a more attractive future currency to be decentralized and private.
"We have witnessed many situations where even completely legal things were eventually restricted, because anyone who runs centralized blood points would only want to exclude certain types of users and me. think those are the reasons why people will continue to care about decentralized digital currencies altogether. "
CBDC is challenging the entire cryptocurrency industry
As Toiyeubitcoin previously reported, the Digital Dollar project is working to develop a framework to establish a dollar CBDC in the United States.
China has also been preparing for DCEP (Digital Currency Electronic Payment) since 2015 and the central bank is planning to deploy the first field test on CBDC.
Central banks across the globe are acknowledging that Facebook's Libra has prompted central banks to consider digital money initiatives to replace cash.
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According to CoinTelegraph
Translated by ToiYeuBitcoin