Cryptocurrencies are taking over the world, slowly but surely. Bitcoin is already the third most valuable currency in circulation after the US$ and the Euro, and this is only the beginning.

The hegemony of the US Dollar and other major currencies is under threat. It’s no wonder that Governments are feeling uneasy about this and get busy devising plans to counteract it.

When unofficial money becomes the de facto choice, the government loses control over the economy, market forces take over, dictating prices, inflation, money supply, interest rates, etc. This leaves the estate powerless and unable to react.

This is what happens in failed economies like Venezuela -no one wants to use Bolivars, instead, they transact in dollars.

Are the most powerful economies in the world — The US, China, Japan, Europe — going to sit down and watch Bitcoin supremacy unravel? Will they try to stop it? Can they do anything about it?

Bitcoin, Ethereum and most cryptocurrencies are decentralized, meaning there is no one in charge. Instead, they operate within a consensus mechanism, a public ledger and an immutable Blockchain to ensure the validity of the transactions.

CBDCs use the blockchain and the public ledger but, unlike crypto, they are centralized. CBDCs will be issued, controlled, and regulated by their respective governments and will become a tool for compliance.

Advantages of CDBCs

• Monetary controls
• Simplicity
• Cost Reduction
• Directness
• Flexibility

When CDBCs are in place and working, they’ll become a powerful tool to redistribute wealth, pay tax, invest or lend straight from the source.

Once the system is up and running there won’t be much need for commercial banks — money will be sent directly from the Central Bank to your wallet without the need for intermediaries. Taxes and fines will be applied instantly.

One advantage of this technology will be speed. Right now governments all over the world are trying to support their citizens in need with financial support but the bureaucracy, the intermediaries and the regulations make this process extremely inefficient. Many citizens have not received their state help yet. With CDBCs in place this will become a thing of the past.

Universal Basic Income, unemployment benefits, or social security can be delivered in a frictionless way to your pocket, making it appealing for those struggling to make ends meet.

Disadvantages

• Lack of privacy
• Loss of sovereignty for the individual
• Possible abuses of power
• Loss of liberties

With such a powerful tool, governments will not only know everything about you, but also penalties could be put in place for not those behaving properly. This is already happening in China with the Social Credit System.

The money in your account could be frozen, removed or make it expire at the click of a button. This is why China is very fond of the Digital Yuan — it’s the ultimate weapon against freedom. If you think this only happens in totalitarian regimes, think again.

With the advent of CBDCs, cash will disappear and with it, we’ll lose the last resort of anonymity. No more paying with dollars in the black market, Craigslist, or your favorite drug dealer. Everything you do will be known and you will have to respond to it.

Well, if they are such a control weapon, surely people will refuse to use them, right?

We can’t. Once CDBCs are out, the government will impose its use and that will leave us with no choice. All transactions can be made compulsory in the official currency through penalties, regulations and artificial barriers.

If you get paid in Digital dollars, most shops only accept the official currency and taxes paid with it, there is no escape. It’s either that or return to barter.

CDBCs won’t succeed due the public happily embracing them, they’ll succeed by imposition.

Of course, there will be the cherry on the cake — promises to make your life easier, less taxes if you comply and less bureaucracy — but these advantages are just tricks to entice you with small benefits while they undermine your freedom.

There is a possibility to avoid this dystopian scenario but only for those who saw it coming beforehand and have prepared accordingly.

Once the Digital Euro is the norm, governments will forbid the transfer of money between the official currency and any other crypto. They don’t like competition.

Now, it’s not too difficult to acquire Bitcoin, Ethereum, or any other Altcoin but when the window opportunity closes no more on-ramp transactions will be allowed. From then on, there will be two parallel systems that will never cross paths — the centralized one and the decentralized one — You want to be in both, but for this, you have to act now.

When things get serious, and they will, either you move your money to crypto and use it to trade outside the system or get out of the system altogether.

Most major economies will impose Digital currencies since they have no other choice. But there will always be countries remaining free and open. The incentive for these is to attract business, citizens and talent.

It’s not difficult to imagine some countries in Africa, Asia, or South America adopting Bitcoin as their main currency forgoing their own money. Countries like Argentina for instance could do much better with crypto rather than its failed currency. Start learning Spanish, you never know what’s around the corner. LoL.

Strong national currencies — the Dollar, the Euro, the Pound, the Yuan, or the Yen -are not going to give in easily but the rest…what do they have to lose? Hyperinflation? Financial chaos? Melting economies?

An international currency that works across borders, that everyone values equally, that can be transacted in a secure, fast, and efficient way, makes a lot of sense. Years ago, when the Euro was first introduced, I thought it was a great idea — it allows people to move across borders without the need for exchanging money every time. I remember thinking there should be a currency that works just like the Euro but all over the world instead of just Europe. Now we got it, it‘s called Bitcoin.

The Digital Dollar is coming, there is no question about it. It will bring many benefits but, for us citizens, it will curtail some liberties.

Governments don’t want to lose power and delegating financial controls to a decentralized currency, it’s not an enticing idea for them.

The war against the invisible enemy has started. It will be long and will bring many casualties. Position yourself correctly so you can pick the winning horse.

Living in an Orwellian dystopia won’t be fun and the only key to escape is crypto. Make sure you fill your pockets with it before it’s completely banned.

In times of crisis, investors look for safe havens like gold. Now, there is digital gold, similar to the metal one but much better in many ways.

Embrace the Digital Euro and make the most of it. But keep some coins under the bed…just in case.

Not financial advice.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/geekculture/the-digital-dollar-is-coming-are-you-ready-for-it-60a8f0d2eb8a?source=rss——-8—————–cryptocurrency