Stablecoin Monster CBDC Red Herring – Bitcoin Magazine


This is an opinion editorial by Mark Goodwin, director of print editorial at Bitcoin Magazine.

I know it pains some of your laser eyes to even see the word Ethereum printed, and while I respect that to a degree, the lessons being learned by the extended alternative cryptocurrency space are too important to ignore. Water’s Warm Maximalism is perhaps one way to look at it, but regardless, ignoring others, even as they potentially fail to centralizing forces, can only leave us ill-equipped to face the similar battle ahead; only the truly naive should view this cooperation between the state and private financial entities as anything but a dire warning of what is about to come to Bitcoin.

Bitcoin is not immune to centralizing forces. Bitcoin is not immune to dollarization. There are many avenues in which Ethereum continues through this fork as a financial entity without any of the supposed benefits of being “the world’s super computer.” This same fate can come to fruition in Bitcoin, and while remaining a formidable financial asset, leave behind many of the taken-for-granted privacy qualities of physical notes. The state understands this to some degree and the push for central bank digital currencies, or CBDCs, has only just been acknowledged in government offices across the globe. For some reason, this perfectly reasonable fear of loss of privacy and property rights innate to centralized money was only placed on money directly owned and most importantly, issued by the state; the suddenly too-big-to-ignore stablecoin industry was left undisturbed, maturing to over $100 billion issued, mainly in the form of ethereum ERC-20 tokens. Circle’s USDC alone has $54 billion in issued stablecoins, and now finds itself seated at the big kid’s table as they prepare for their biggest consensus test yet; proof-of-stake.

Source link Bitcoin Magazine


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