There was a time when investors, traders, or even the simplest of businessmen used to do their business in gold. At the time, it was the only acceptable mode of payment on a global scale. Then the mean of economic development rolled, and we were using coins made of bronze and aluminium to preserve gold and while using those in replacement of gold which was kept in reserve for a specific region or country. After that, bonds and paper notes came into being, and these are what businesses use throughout the world even to this date for the sake of conducting trade.
It is not like anyone has tried to replace the paper currency with leaves currency or leather currency as it doesn’t work like that. If there is a standard that is accepted on a global scale, then the whole world has to come united on it, and as for the fiat currency being run all over the globe, everyone seems to be pretty supportive of the idea; then came cryptocurrencies. Cryptocurrency is still a very new technology and possibly the future of modern finance as we know it, but people are still not sure how it does work or what should they expect from it.
CBDC: Destroyer Of Cryptocurrencies
It is not a law yet that every country has to enable cryptocurrencies as a mode of payment or a legal tender with their respective fiat alternative, but still, if we are to move from the paper currency the way we did with paper notes and silver coins, cryptocurrency is the right way to do so. A whistleblower from the United States has shared a very negative take on the central bank digital currencies or CBDCs for short, calling them the destroyer of cryptocurrencies and the idea of decentralization.
Edward Snowden took it to Twitter to bash CBDCs and chip in his two cents about this whole thing. He might be right here because decentralization means no one state or government is going to be in charge of a dedicated cryptocurrency, thus removing the centralization from the equation altogether. The CBDCs, on the other hand, is a sorry attempt by various nations to develop their own digital currencies to replace the actual cryptocurrencies, thus ruining the whole format of decentralization. It is as if making no progress whatsoever; it is as going back to centralization instead of a decentralized economy available to all.