A benefit of CBDCs to those in power is that every transaction can be linked to the person or entity involved, unlike cryptocurrencies which offer a veil of anonymity.  Also, whereas decentralized cryptocurrencies run on public blockchains, meaning anyone can access the ledger, CBDCs would run on private blockchains only accessible to the central banks and those they authorize to view it.  Third, with CBDCs, central banks are in control of the money.  They will be the ones setting rules and regulations regarding its use, which means they will have the ability to deny transactions, freeze bank accounts, etc., if people fall out of line….of course, this isn’t much different from the control they have now, as we saw in Canada where their government froze bank accounts of ordinary citizens and removed their ability to access survival for the purpose of “encouraging” them to comply.

What does this all mean for popular cryptocurrencies?  It depends.  My two cents…once CBDCs roll out in full and all the bugs are worked out, governments will want every citizen to use them.  To facilitate the transition, they will likely introduce regulations on cryptocurrencies, while engineering media campaigns to drive people away from cryptos and toward their money.  Who knows, maybe they will move toward banning cryptocurrencies, as some countries already have, though that might prove difficult.  Additionally, once CBDCs, backed by the most powerful entities in the world, become available, cryptos might not disappear, but they could certainly take a hit as people speculate their demise, cash out, and then cash into money they feel is more reliable and more transferable.  Time will tell…

An additional cent…I don’t really have a dog in this fight because I think crypto is just as silly and imaginary as fiat money, BUT I get its appeal since it’s mostly detached from centralized power and government oversight.  And though the state of cryptocurrencies right now reminds me of the era of Wildcat Banks in the early-19th century where banks were popping up left and right and money was highly volatile, any time moves are made to further corral and wrest control from the human livestock and give more power to the “opulent minority”, I tend to lean against it.