28 Comments

Great article Scholar!

A potential scenario of the future "co-existence" between CBDCs and crypto (BTC for the example, given regulatory uncertainty):

- Most nations, even those that are crypto-friendly, implement a CBDC as it becomes the only way to buy and hold foreign reserves (no idea how you'd move the entire FX market into adoption but less imagine it happens) -> you want to hold in your reserves tokens from the most productive/stable nations, to buy you need to use a CBDC as well.

- Most western nations ban any on/off ramps platform to get crypto from a CBDC (we're going in that direction). Perhaps they allow only BTC/ETH to allow for taxation + tracking of anyone offloading their wealth into their nation token.

- Small crypto-friendly and African+Asian nations allow for a wider use of on/off ramp mechanisms as they see the benefit.

- Hence North Americans and Europeans choose to have a % of their wealth allocated in Asian CBDCs, as it allows them to bank and access the crypto market.

- The consequence? US, CA and EU CBDCs become devalued in the FX markets. Two courses of action are considered:

1. Banning EU, US citizens+businesses from holding any Asian CBDC, which leads to a currency war as Asian nations retaliate, further accelerating the demise of the US/EU axis.

2. Allowing again the on/off ramps to crypto, attracting more capital and industry.

One way or another, Banks go to Zero, Orange Coin wins.

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I never thought of it as Crypto vs CBDC, its been more like CBDC are the flip side of CRYPTO. I've always believed CRYPTO was introduced to the masses as a way to to lead to the adoption of CBDCs.

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Great article.

How will a CBDC affect companies such as Visa, MC, Stripe, Block, PayPal etc.? Will they be forced to only transact with a CBDC? Will individuals spending power at these companies be limited to available CBDC in their govt. account? Do individual KYC bank accounts, 401k's, brokerage accounts get converted in time to a CBDC based valuation?

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very interesting takes, had missed that CDBCs are so close

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Good article Scholar

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Nice article. If you believe in the Bible, no one will by able to buy or sell without signing up/pledging allegiance. Sounds like a CBDC

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If CBDC is implemented here in US, will the fed gov make it illegal for business entities to accept other digital currency (btc) as legal tender? The fed gov has the incentive, the power, and the institutional support to make it happen, whether people want it or not. And what is the value/utility of btc in that scenario?

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An interesting read thanks for providing this info

Imho I am not very concerned about the CBDC

I believe businesses will massively adopt it. Nothing to hide and fast transactions

People will have some money there, but probably be resistant to change. Also, there is a huge black market. It can't disappear overnight

So probably either cash or decentralised crypto will also exist. I doubt a CBDC can be forced where all other options are eliminated.

My $0.02

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Mar 14, 2023·edited Mar 14, 2023

Great article.

Just wanted to know your POV - overall makes sense, how do you think payment system via BTC or any other coins would work out in the future, value wise?

For example, assume that in future the time has come and BTC is valued at $50K at time of transaction and the item costs me 1 BTC. So, that product is $50K. One year later, 1 BTC goes up $100K.

Doesn't it mean that I've paid the item $100K? And any ways to go about this?

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Reminds me of Snow Crash by Neal Stephenson. Official USD had been inflated to near total worthlessness and corporations that could offer stable value stepped in and issued their own currencies.

Obv some differences w crypto instead of corporate currencies, but same path of official govt fiat being shunned and deprioritized.

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Excited to go to participate in the Q&A. March 15 is my birthday and I turn 19 😎😎

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@BowTiedScholar- as a hedge, should we open an account and purchase Digital Yuan?

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Hey Bull,

Lifestyle question. In WSP you recommend not having social (IG in this case). I’ve. noticed that for getting the girls it’s easier if you have (flex/lifestyle pictures), but on the other end I hate “showing off”. Seems like in the dating scene if you don’t have an IG presence you’re at a huge disadvantage.

If you were 23yo, 300k NW, above average for looks (not a brag but can pu at clubs without saying a word) would you even bother publicly putting yourself out there? Or is the juice not worth the squeez? Plus I like your IG so this would give another reason of using it other than just a chick funnel.

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