China reportedly implemented the country’s first blockchain-powered digital yuan transactions in the Xiong’an New Area.That's the first country to actually use CBDCs after pilot testing them for over a year and it's not bullish for crypto at all.
No wonder why is China so defensive on anything related to crypto in their country. Why are CBDCs the true competitors of cryptocurrencies and why is that bad? Not hard to figure that out I guess, but we'll go through the narrative once again.
China is progressing with its central bank digital currency (CBDC) tests, debuting blockchain-enabled salary payments in the digital yuan. According to the official website of the Xiong’an New Area, the People’s Bank of China (PBoC) has successfully completed the nation’s first on-chain wage payouts in the digital yuan.
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A dream come true for China, a country that's still so communist and totalitarian that it puts communisms to shame. Taking into consideration that technology is on the side of the Chinese government, having a private life, that including personal finance and online privacy as well as an offline one(here pointing towards China's surveilling system) it's going to be hard to escape the big brother. Yep, looks like George Orwell was right... We start seeing big brother in real life.
Announcing the news on Saturday, Xiong’an authorities said that the pilot involved guidance and support from the Shijiazhuang-based PBoC branch, the Bank of China Hebei Xiong’an branch, as well as the National Development and Reform Commission. The new CBDC pilot used a blockchain-based payment platform to distribute salaries to workers on spring afforestation projects in Xiong’an. Engineering subcontractors made payments directly to builders’ digital wallets from a public wallet and recorded the relevant data on a blockchain.
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"Relevant data has been recorded on the blockchain"... That's not nice. That means, at least from my simple minded man's perspective that tracking is taken to a whole different level, the blockchain level and that's when blockchain technology starts playing against its users and not for their benefit.
The world is somehow divided, on one hand we have countries such as El Salvador, Cuba and Paraguay that are clearly for Bitcoin and embracing an alternative to the dollar, or whatever they have in their countries as legal currency and on the other there's China with its already in play centralized blockchain that's supposedly recording data and will do that probably on an infinite time frame.
Lets keep it short, shall we! Why are CBDCs the true competitors of cryptocurrencies and why is that NOT GOOD? It's because dinosaur currencies have no future anymore, technology is what drives everything forward, but technology is like a knife. You can either use it to make yourself a meal or to stab someone.
How do you think are governments gonna use blockchain technology, to cook us meals or to stab us?
The narrative is pretty simple. Blockchain technology when we talk crypto as we know it is decentralized, made by the people for the people, banking the unbanked, empowering its users and a tool granting privacy and security to its users transactions.
When in the hands of the governments it leads to more centralizing power, control, increased data bases, trackability and all sort of ways through which one country can further enslave its citizens by using such tech.
Hence I consider that at this point laws and regulations, bans, fiat money and almost anything you can think of are no longer the worst enemies of cryptocurrencies, but rather CBDCs are. Those are working on totally different principles than decentralized blockchain technology and its cryptos are. That's what we're fighting against...
Thanks for attention,
Adrian