CDBC may spoil commercial business

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We are ALL seeing where the future of money is tilting to. Yes, it is going to be handled by blockchain technology. Whether it will be decentralized or decentralized, this we can't conclude, or you can depending or where your heart inclines to. But we have to admit, the government won't accept to be an exception. Early financial conglomerates have crowded the centralized system, you should know what this means; letting go is not a one year or even a decade decision. They will continue to push and remain very valuable.

I spoke about this in yesterday's article; ( is CBDC dependable? ). How the big players have been able to successfully cage Bitcoin. This is something many would have been in doubts some years earlier. The boasting of a truly decentralized way of making transactions is NOW ETF dependent. Funny and at the same time painful especially for its creator. Satoshi did a good job, this I have to admit, at least everyone's or should I say many eyes have been opened to the behind the scene of governmental monetary operations.

Personally, I would say we are looking into a future of dual transactions operation (Dex and Cex). Perhaps the DEXs will be the underdogs; maybe an article to expound more tomorrow. I wrote several things yesterday about CBDCs and how it can explode when looking at who and who is backing it. First and foremost, we have to admit that the unit of account is still in centralized hands. If you were to ask me, I would love it to switch soonest. No doubts, I am a big fan of the decentralized system. Loving it is one thing, making it happen is another. This is where we have to accept reality.

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Pushing further, I am beginning to see the effect CBDC can have on many businesses. When talking of digital Fiats and paper notes, it seems there is still a big room for commercial bank businesses. Will this be same if CBDC takes charge?. Who needs commercial industry when the duo (Blockchain tech and AI) can do all the wonders. The issue of job layoff is not only attributed to individuals. We can argue that many industries will have to give way due to AI inception. The ones to survive will be the ones who evolve to remain relevant.

I don't know I I am making too much sense here but what need will be for commercial banks when nanoseconds tech like AI can handle national economy and transactions. Yes, there will continue to be transaction fees and taxes but this time around only one third party will benefit (direct government business). The reasons why central banks depend and tolerate commercial bank business is because of speed, efficiency and security. Of course it will be one difficult task to meet on a daily basis. Consider customer service and the rest of the likes.

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Can't AI agents handle this for CBDC to thrive? Sentiments aside, if those running the governmental banking system see the level of interest that await them, they will definitely cease this opportunity. In return, commercial bank services may be doomed. I know the question will still bounce back to how secured their chain will be since it will be a contact point to many hackers. In yesterday's article, I tried to explain some parts of these security measures, just do well to check them out. As I earlier said, I am a big fan of decentralized but it seems we have been outplayed here.

This does not mean decentralization will fade out no. In short, it opens more doorways for these underdog chains to thrive. How? stay tuned for tomorrow's article. Maybe commercial banks will exist, not as a business but as behind the scene investors in the central bank business when CBDC takes over. It is a matter of shares and dividend division among those who pour in their chunk of cash for CBDC daily transactions. Without doubt, this already will be out of the local investor's hands since the government's way of investment is always focused on 'accredited investors'. This also serves as another means for Decentralized to coexist.

To conclude, let me add, there may soon be a folding off of the commercial banking sectors. Those that will be affected the most will be the workers from what I am seeing. owners of this banks hold Enough assets to jump into the CBDC investment for dividends. Nevertheless, their profit margins will really be sliced in the process (the government will pay interest as they deem and we know these guys are always interested in keeping more).

Indeed blockchain tech is bending into a direction we never saw coming. As long as money is concerned in this money mentality driven world, he who controls it, controls the people. From running from to running for, has this tech put the masses in another long run of overdependence on centralized operations.

Posted Using INLEO