CBDC continues to be in the news!

India wants it.

China wants it.

USA recently said no!

<aside> <img src="/icons/arrow-right_purple.svg" alt="/icons/arrow-right_purple.svg" width="40px" /> 🇺🇸 US House passes bill to ban the Federal Reserve from creating a Central Bank Digital Currency (CBDC).

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US has a relatively supportive environment for cryptocurrencies.

Many countries, including Germany, Japan, Australia, and others, mostly go for No CBDC.

Does that mean if a country is not CBDC-friendly, is it crypto-friendly?

Not that simple! Let's dive deep…

Not CBDC-friendly but Crypto-friendly

<aside> <img src="/icons/arrow-right-basic_purple.svg" alt="/icons/arrow-right-basic_purple.svg" width="40px" /> First, why are the above few countries, like the USA, Japan, etc., not CBDC-friendly?

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There are various factors like:

• Their existing digital payment systems work fine.
• They don't want to impact the banking sector and overall financial stability by adding CBDC to the fray!
• What if the Government uses CBDC as a surveillance tool against privacy and civil liberties?
• CBDC will increase government control of financial systems.
• Local culture is pro-cash (Japan as an example)
• Existing commercial banks may lose if people want to move deposits to the Central bank with CBDC.