Random Blog on Crypto (Part 03) : Crypto can be the best solution to CBDC problems

Many of us may have heard the name of the Central Bank Digital Currency (CBDC). That is, if any digital currency is launched from the central bank, that currency will work like normal currency or token but in digital format. That is, this digital currency will be transferred from one account to another without the use of any type of paper or coin. And all transfers can be monitored and recorded from one place. That task will be in the hands of the Central Bank. Therefore, from all this data, who has what amount of wealth and how much tax will come from him and how the money circulation in the market can be easily brought under control.

Central bank digital currency has solutions to these problems as well as mistrust. Day by day people are losing their faith in the government or central system. One of the reasons for this is various corruption and oppression of the government in different countries. People's distrust of governments in third world countries is extreme. Since the CBDC will be launched from a central bank, it is natural to have a lack of trust because all central banks are backed by the government in power.

If this digital currency is not a crypto currency then people will not always be able to trust the central bank because the central bank can create a lot of digital currency if it wants to. So I think if cryptocurrency can be considered in the central bank digital currency system then this trust problem can be easily overcome. As much as the digitized version is needed, so are the users' trust and security measures. And these two features basically want to get Central Bank digital currency together.

The main problem with cryptocurrency is that it is impossible to trace who is transferring to whom. All data is open to everyone but the ID of the user is encrypted. By eliminating this problem it can be easily used by the central bank as a digital currency. That is, if you can bring to the system to trace who is sending to whom, basically the Central Bank Digital Currency (CBDC) can be a cryptocurrency created by the Central Bank whose version is digital. So I think any central bank can replace digital currency with crypto and meet its needs. Let's see which country takes the initiative first. I believe that the earlier the country, by adopting blockchain technology, can take advantage of it, the earlier that country will advance. Today I wrote this post which will be a history after 50 years. Thank you.

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