Blair Halliday , Managing Director of Kraken UK , says caution needs to be exercised before the official rollout of CBDCs can be considered . “ Today , more than 100 countries are in various stages of developing CBDCs and around 10 have successfully launched to the public . There are mixed opinions regarding how CBDCs will impact the DeFi space , as well as how closely CBDCs align with the underlying principles of crypto assets .
“ Though the applications are endless , it ’ s possible that CBDCs could provide governments and banks with the ability to track transactions and provide real-time censorship to individuals that disagree with their viewpoint . While this might seem outlandish , it is not beyond the realms of possibility , so the industry is carefully watching the CBDC roll out across various countries to assess whether they are acting as a force for good or providing tools for control .”
Trust in crypto set to increase As CBDCs are endorsed by governments , it seems likely that trust in the digital currency space will increase . This will be further bolstered by tougher regulations and security , as well as being a currency alternative for those who are not keen on using CBDCs .
One of the benefits of using a nongovernment-regulated cryptocurrency is the privacy it affords the user . Cash is swiftly diminishing and also has limitations in terms of cross-border transactions .
102 March 2023