CBDCs [Central bank digital currencies] are gaining popularity almost everywhere now, as all the global leading economies considered producing their own virtual money. But how will CBDCs affect the growth of the leading cryptocurrency Bitcoin [BTC] if every nation comes out with its own? Dean Steinbeck, co-founder as well as CEO of Horizen Labs, added that Bitcoin’s core atmosphere would remain on the same optimistic side.
“There has recently been many activity internationally with governments exploring the event of native virtual assets,” Steinbeck added. Steinbeck also works as general counsel at Horizen. “A healthy, robust virtual assets ecosystem has the potential for broader financial inclusion, more efficient markets, then forth,” he said.
China seemingly led the CBDC charge earlier in last year, and has continued its hot pursuit of such an asset. The U.S., on the opposite hand, positioned itself more toward accuracy rather than rushing a digital cash choice to the market, although it’s recently expressed greater emphasis on CBDC focus.
“It’s hard to mention how the growing interest behind CBDCs will affect bitcoin, or cryptocurrency generally,” Steinbeck revealed, adding:
“Bitcoin was always meant to work outside of governmental management as a p2p technology, so on the face of things not much will change for those interested in bitcoin on principle. However, it remains to be seen if governments will begin attempts to clamp down on digital assets operating outside of whatever system they need decided is ‘correct.”
Bitcoin is a borderless asset used by the people & code, with a worth untied to national currencies. In contrast, countries will peg the worth of their CBDCs to native fiat currencies, although exact specifications remain unclear at this stage. Stablecoins tied to the worth of national currencies could see impact from CBDCs within the future, consistent with recent comments from Decred’s co-founder, Jake Yocom-Piatt.
“I believe the collective awareness of censorship – among many other variables – bodes well for the longer term of cryptocurrency,” Steinbeck added. “Broader awareness of the advantages of the virtual currencies, like CBDCs, also has the potential to show more casual users to the cryptocurrency ecosystem.”