{"id":14148,"date":"2025-02-20T15:46:58","date_gmt":"2025-02-20T15:46:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=14148"},"modified":"2025-02-20T15:46:58","modified_gmt":"2025-02-20T15:46:58","slug":"cbdc-growth-on-the-backfoot-will-centralized-digital-currencies-replace-crypto","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=14148","title":{"rendered":"CBDC Growth On The Backfoot: Will Centralized Digital Currencies Replace Crypto?"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400;\">Although in their infancy,\u00a0 <a href=\"https:\/\/99bitcoins.com\/news\/30-central-banks-confirm-delaying-cbdc-plans-survey-reveals\/\">134 countries<\/a> are now exploring central bank digital currencies (CBDCs).\u00a0 That\u2019s 46 more countries than this time last year.\u00a0<\/span><\/p>\n<p>Like it or not, Central Bank Digital Currencies (CBDCs) are on track to dominate. Their rise won\u2019t just shake up <a href=\"https:\/\/99bitcoins.com\/news\/wall-street-giants-state-street-and-citi-enter-crypto-custody-race\/\">traditional money<\/a>\u2014it could reshape the future for cryptocurrencies like Bitcoin and Ethereum, too.<\/p>\n<p>But what exactly are CBDCs, and how much should crypto investors care?<\/p>\n<h1><b>What are CBDCs in Non-Nerd Speak?<\/b><\/h1>\n<figure style=\"width: 500px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/i.4pcdn.org\/pol\/1737998876977353.jpg\" alt=\"\" width=\"500\" height=\"500\"><figcaption class=\"wp-caption-text\">(<a class=\"general-link\" href=\"https:\/\/x.com\/AfroReporter\" target=\"_blank\" rel=\"noopener nofollow\">X<\/a>)<\/figcaption><\/figure>\n<p>CBDCs are the next stage of fiat evolution. Issued by <a href=\"https:\/\/99bitcoins.com\/news\/30-central-banks-confirm-delaying-cbdc-plans-survey-reveals\/\">central banks<\/a>, they function as digital counterparts to old-school currencies like the euro and dollar.<\/p>\n<p><span style=\"font-weight: 400;\">There are several pragmatic benefits to a fully digital fiat currency:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No service or exchange fees, unlike with BTC and ETH<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It is more convenient than holding physical bills, cards, or coins.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Payments are faster than that of credit cards or cash<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Backed by a government, unlike <a href=\"https:\/\/99bitcoins.com\/price-predictions\/btc-bull-token\/\">Bitcoin<\/a> or Ethereum<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Easier storage for governments<\/span><\/li>\n<\/ul>\n<p>Consider CBDCs as digital substitutes for traditional currency, designed to mirror their value or, in some cases, completely replace cash.<\/p>\n<h1><b>Are CBDCs Better Than Bitcoin and Other Decentralized Coins?<\/b><\/h1>\n<p>The key difference lies in control. Cryptocurrencies such as Bitcoin and Ethereum are built on decentralization, removing any single entity from power. CBDCs hold the opposite philosophy.<\/p>\n<p>There\u2019s no central authority for CBDCs, and they can dictate how they operate. Transactions flow without gatekeepers, and <a href=\"https:\/\/99bitcoins.com\/wallets\/best-wallet-review\/\">personal wallets<\/a> remain untouchable by outside forces.<\/p>\n<p>Another key draw is many cryptocurrencies are deflationary. Take Bitcoin\u2014its supply is capped at 21 million, with no mechanism to mint even a single extra coin. This hard limit safeguards against inflation that fiat currencies can\u2019t match.<\/p>\n<figure id=\"attachment_207508\" aria-describedby=\"caption-attachment-207508\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-207508\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-1024x570.png\" alt=\"\" width=\"1024\" height=\"570\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-1024x570.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-300x167.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-768x428.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-1536x855.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15-50x28.png 50w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-15.png 1607w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"><figcaption id=\"caption-attachment-207508\" class=\"wp-caption-text\">(<a class=\"general-link\" href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\" target=\"_blank\" rel=\"noopener nofollow\">CoinGecko<\/a>)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">CBDCs, on the other hand, are issued by the same central banks that distribute traditional dollars and euros. They <em>do<\/em> have a middleman and <span style=\"margin: 0px; padding: 0px;\"><em>aren\u2019t<\/em> immune to government money printing<\/span>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be blunt, CBDCs have very little in common with decentralized cryptocurrencies. Rather, they should be considered a digital form of fiat currency.\u00a0<\/span><\/p>\n<p>With CBDCs, they can:<\/p>\n<ul>\n<li>Freeze your funds if you protest, <a href=\"https:\/\/99bitcoins.com\/news\/pr-news\/just-35-hours-remain-to-secure-best-wallet-presale-as-funding-hits-9-5m\/\">speak out<\/a>, or don\u2019t comply.<\/li>\n<li>Limit purchases based on carbon footprint, social credit score, or \u201capproved\u201d items.<\/li>\n<li>Enforce expiration dates on money, forcing you to spend how they dictate.<\/li>\n<li>Track every transaction\u2014<a href=\"https:\/\/99bitcoins.com\/news\/elon-musk-xrp-marriage\/\">privacy is gone<\/a>, and cash under the table becomes impossible.<\/li>\n<\/ul>\n<p>Once cash is gone, you have no escape hatch. Money will be faster and more efficient, but privacy will be gone. Is it worth it?<\/p>\n<h1><b>Which Countries Are Working on Their CBDCs?<\/b><\/h1>\n<p>The push for CBDCs is almost universal.\u00a0<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">A 2024 Bank for International Settlements report found <a href=\"https:\/\/www.mastercard.com\/news\/perspectives\/2025\/central-bank-digital-currency-cbdc-vs-cryptocurrency\/#:~:text=About%2094%25%20of%20central%20banks,Bank%20for%20International%20Settlements%20survey.\" target=\"_blank\" rel=\"noopener nofollow\">that 94%<\/a> of central banks are exploring digital currencies.<\/span>\u00a0China is already testing the waters with its <a href=\"https:\/\/99bitcoins.com\/news\/hong-kong-opens-up-chinas-digital-yuan-pilot-programme-to-retail-shops-in-the-city\/\">Digital Yuan<\/a>, while India, Turkey, Russia, and the EU are making rapid progress. So what about the U-S-A?<\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s tricky. U.S. <\/span><span style=\"font-weight: 400;\">Federal Reserve Chairman Jerome Powell hates cryptocurrencies but has previously voiced support for CBDCs.<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">\u201cYou wouldn\u2019t need stablecoins; you wouldn\u2019t need cryptocurrencies if you had a digital U.S. currency,\u201d said Powell in a <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/07\/14\/watch-fed-chair-powell-speak-live-on-policy-and-the-economy-before-a-house-panel.html\" target=\"_blank\" rel=\"nofollow\"><span style=\"font-weight: 400;\">congressional hearing<\/span><\/a><span style=\"font-weight: 400;\">. \u201cI think that\u2019s one of the stronger arguments in its favor.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">Although the United States is also interested in launching a CBDC in the future, the digital dollar work is very early.\u00a0<\/span><\/p>\n<p>So, will decentralized cryptocurrencies be able to survive the onslaught on central bank digital currencies? Only time will tell.<\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/xrp-price-jumps-11-after-sec-crypto-unit-tease-xrp-etf-progress\/\" target=\"_blank\" rel=\"noopener\">XRP Price Jumps 11% After SEC Crypto Unit Tease XRP ETF Progress<\/a><\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"noopener nofollow\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/cbdc-growth-on-the-backfoot-will-centralized-digital-currencies-replace-crypto\/\">CBDC Growth On The Backfoot: Will Centralized Digital Currencies Replace Crypto?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Although in their infancy,\u00a0 134 countries are now exploring central bank digital currencies (CBDCs).\u00a0 That\u2019s 46 more countries than this time last year.\u00a0 Like it or not, Central Bank Digital Currencies (CBDCs) are on track to dominate. Their rise won\u2019t just shake up traditional money\u2014it could reshape the future for cryptocurrencies like Bitcoin and Ethereum, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-14148","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14148"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14148\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}