The world is going digital. Paper money is soon to go the way of the dodo bird, a distant memory like the Sony Walkman or Trapper Keeper. Central Banks around the world continue to further explore digital currencies, making CBDCs (Central Bank Digital Currency) an inevitability.
Is this a good thing?
Yes… and no.
CBDCs will be good for Bitcoin. The entire world will be introduced to the idea of opening wallets and using digital currencies to transact. This will inevitably lead people to other cryptocurrencies, specifically Bitcoin. One of the main barriers to mainstream adoption is getting the average Joe to accept and use the technology. Their hands will be forced if CBDCs become the de facto standard for transacting.
The bad news is that privacy will be a distant memory. Cash leaves very little trace. Digital transactions will be easily trackable, and utilizing them will require citizens to give up more information to the government. They will know how much you spend, what you buy, where you buy it and when you did it.
That’s bad.
Hopefully everyone will realize this and use their new found confidence in digital systems to buy and utilize Bitcoin.