Grayscale: Central Bank digital currencies will not replace or harm Bitcoin, it is rare and uncompromising
The central bank’s digital currencies (CBDC) do not pose a threat to Bitcoin’s value proposition, but will propel its growth towards mass adoption.
In a new report, Grayscale Investments said that CBDCs will never replace BTC because, unlike the main cryptocurrency, they can be inflationary and are open to manipulation by Central Banks.
CBDCs are merely digital versions of fiat currencies, which cannot escape government control, he said, adding that government-backed cryptocurrencies simply maintain the status quo.
State control is anathema to Bitcoin, an asset created to challenge the conventional financial system and return ownership of money to people, beyond the reach of the state.
“CBDCs can censor or block unordered addresses, and Central Banks will continue to control monetary policy,” says the report, which examined the potential impact of state-issued digital currencies on the status of bitcoin.
“On the surface, it appears that a digital dollar could displace Bitcoin’s growth because they are both digital, but it doesn’t really address these top concerns,” he added.
CBDCs are digital currencies issued by Central Banks, created, in part, to neutralize BTC. About 25% of Central Banks around the world are now actively exploring the possibility of issuing state-backed cryptocurrencies, but none is closer to doing so than China.
Grayscale Investments, which manages more than $ 3.8 billion in digital assets, noted that any similarity between CBDC and bitcoin is false. But as more people become familiar with the digital payment infrastructure due to the successful implementation of CBDC, Bitcoin will reap the benefits.
“Whether CBDCs are successfully introduced or not, they already strengthen the case for non-sovereign digital currencies, such as Bitcoin, by forcing institutions to consider adopting digital currency infrastructure, while educating users on digital bearer assets and the characteristics of good money. ” The report notes the following:
“Bitcoin is unique not only because it is digital, but because it is scarce and available for anyone to use
The report explains that “moving big coins into the digital infrastructure would highlight that Bitcoin is special not because it is digital, but because Bitcoin is a non-political, scarce, uncompromising and open currency that anyone can use.”
Blockchain-bitcoin technology has no owner whatsoever. The ecosystem made up of programmers, users, libertarians and friends of this revolutionary way of generating wealth has the possibility of taking a journey from economic freedom to the power to create your own bank every user, meaning that no government can confiscate this valuable value. The Central Banks, with the creation of digital fiat currencies, will give bitcoin a big boost, it is a matter of time to see this great event.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.