Central banks have stepped up their game by developing the world's first CBDC. China, which has a long history of its own weapons, is currently at the forefront, but its motives may be slightly more threatening, as it will provide the regime with an unprecedented level of mass surveillance.
According to Ajay Bang, CEO of Mastercard, governments appear to be moving towards the nationalization of their currencies and consumer payment systems. The credit giant abandoned the Facebook Libra project because of data integrity and compliance issues, as well as confusion about how it could benefit from the project.
Forbes expanded this idea by announcing that Crypto Crypto could be launched as central banks compete with private companies for digital dominance.
Mastercard may have stopped the initiative to protect its revenue stream, as blockchains-based currency would become a direct competitor to its services. The same goes for PayPal, which went down in Libra in October last year.
The report added that cryptocurrency assets in bitcoins and public blockchains can pose a threat to private corporations or companies supported by the central bank, but market capitalization should be much higher than the current 260 billion dollars.
He then explored the idea that smaller economies can make an impact if they can issue their own stable coins. It is also believed that central banks and regulators can prevent regulatory competition to protect their sovereign currencies.
Asian countries are already far ahead of the CBDC research curve, and there is a high probability that the US will remain with digital dust. SEC and CFTC can take months, laying off simple solutions that can pave the way for many new digital investments in the product and innovation sector.
Catching up with the US would require a major paradigm shift, such as an encrypted presidential election. Perhaps they are putting their hopes on Facebook to have the Libra Central Bank chief win the Crypto Cold War on their behalf, as a centralized social platform is already making a big impact in North America.
Digital currencies have changed the playing field, and central banks are now paying close attention. The financial ecosystem is evolving, and decentralized currencies and platforms like Bitcoin and Ethereum are making progress.
A crypto war may be inevitable as countries around the world try to maintain control of their currencies and economies by facing their neighbors.