| I somewhat agree with your sentiment: the outcome is sort of the same but for different reasons. > "but most central banks are good enough at keeping the rate of loss relatively constant" The past two years clearly demonstrated central banks deliberately set the rate of annual inflation to a desired level in a much more directed way than anyone realized. At least for business as usual economies. Once you see inflation as a tax it starts to make more sense. But the end result is a "mostly" responsible entity in control of the inflation rate, so the sentiment is same: traditional fiat currencies will be more stable for a while to come, maby forever (when compared to crypto). > "I'm not convinced that decentralized ledger-based crypto is going to win out in the long term" Blockchain was designed to surpass the problems the pre-Bitcoin E-gold service hit: the government can always smite you by raiding your office and taking the servers. That's the sole problem Blockchain solves, nothing more. In that sense it's already proven itself as a successful technology. Otherwise, if you're a government-sanctioned entity there's no need to fool with Blockchain when rolling a CBDC: your main physical risks are terrorists and natural disasters, not smiting by a police raid. > "especially if central banks make good on releasing digital currency" It's coming, but it's not what people want it to be. The Fed is saying "we're not trying to kill off cash" while putting out open calls to investigate all the things they need to do in order to kill off cash. Another issue here that I don't see being talked about is that the very nature of stable-coins exposes these assets to the inflation rate that the asset is pegged to. This means it's getting taxed, and so it makes sense for the Fed to want to get into the crypto world from that standpoint. https://www.federalreserve.gov/publications/files/money-and-...
https://www.federalreserve.gov/econres/ifdp/files/ifdp1334.p... The major danger with CBDC is that this is going to be used along with social credit scores. We just saw Canada lock bank accounts of anyone who donated to the trucker protest. These people are f#$%ed. Now imagine if they were locked out of using cash as well - even that emergency stash under the couch cushion would be useless to buy food. It's a nightmare situation and it's coming sooner than later. But again, governments and central banks don't need this level of power, governments have proven they will seize bank accounts of those they disagree with. But cash still allows people to move around these barriers. Once CBDC's roll out it's a very bleak outlook. https://www.youtube.com/watch?v=rpNnTuK5JJU
https://www.coindesk.com/policy/2021/12/30/mexico-plans-to-i... |