Good Question - Good Answer

การส่งเสริม • 2020/04/28 • โดย Remitano

"Good questions - Good answers" - where you can freely express all the questions, concerns, or difficulties that are causing you a headache and immediately receive answers from the crypto loving community in Remitano. We believe that starting with the right question will have the right answer and from there, lead us to all the right investment decisions.

The activity consists of 2 parts:
Part 1 Ask questions by commenting on this article. A good question selected by Remitano will receive gifts from us and become the official question in part 2 - Answer
Part 2: Answer by commenting on your answer. The 2 best answers selected by Remitano will receive gifts.

In the final Good Answers, Remitano found two of the best answers to the question:

" Are Central banks and government adopting cryptocurrencies through the creation of Central Bank Digital Currency (CBDC) or is it a sneaky way to control cryptocurrencies?"

Congratulations to 2 players:

dean01oreoluwa with the answer:

central bank digital currency has increasingly been the subject of discussion with China aiming to lunch the first digital currency to help improve payment systems and cross-border transactions.
To an extent yes with CBDC introduction could mean adoption of cryptocurrencies
The emergence of Bitcoin and other cryptocurrencies opened the way to decentralized means of payment that are cross-border and outside the control of central banks. With CBDC it could become centralized and controlled, CBDCs would continue to be peer-to-peer, but could be universal or restricted to a particular group of users.

holyfield898 with the answer:

Yes to both questions. The payments landscape of a country is critical to the ability of its Central Bank to manage the economy. In its white paper, the Bank of England (BOE), UK's "Central" Bank, highlighted some concerns about the evolution of people's use of money and payments. A Central Bank is only able to maintain financial stability, by being able to control its money in the form of banknotes and reserves. If new privately issued payments systems such as Bitcoin begin to dominate the payments landscape--and Bitcoin is decentralized--it could affect the economic/financial stability in unpredictable ways. In a previous post by Remitano, it highlighted scams and high price volatility among other disadvantages of cryptocurrency/bitcoin. A wide-scale adoption of a system with such inherent weaknesses could become collosal to a country's economy in the event of an elaborate hacking attack, possibly more than the 2016 DAO hack, or the March 2020 drop of Bitcoin by 50% overnight. It's the duty of a government to ensure stability of the payments landscape and provide the necessary safety for its citizens. Such concerns, especially of financial stability, safety and trust in transactions, are of major importance to governments, thus the need for a CBDC to provide faster (e.g. cross-border) and risk-free payments system. Control helps stability.