Vitalik Buterin Sees Future in Decentralized Privacy Currency

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With governments increasingly looking at launching their own digital currencies, you might worry that crypto just can't compete with national financial infrastructures.

Erin spoke with Block TV podcast on March 4 about his predictions for the future of currency - specifically the fate of decentralization.

He claimed that digitalization is inevitable and decentralized privacy currency would be more favorable to many than a state-controlled Central Bank Digital Currencies.

Digitalization is inevitable and privacy is kingVitalik believes that with or without blockchain technology, digital currencies will continue toward mainstream adoption.

"The main challenge with central bank and even corporate currency is basically the concentration of power, the concentration or data collection - that you become dependent on potentially central intermediaries that can exercise a very fine-grained degree of control over who has the ability to participate in these systems and who can't."

"We've been seeing many situations where even things that are perfectly legal just end up getting restricted because whoever runs the centralized chokepoints just wants to exclude some category of users and I think those are reasons why people will continue to be interested in fully decentralized digital currency."

Governments across the globe look to challenge decentralized currencies with CBDCsAs Cointelegraph reported previously the Digital Dollar project is working to develop a framework to establish a dollar CBDC in the United States.

China has been preparing for DCEP ever since 2015 and has been reported that the central bank was planning to conduct the first real-world test of its CBDC. Central banks globally have admitted that Facebook's Libra pushed central banks to seriously look into digital currency initiatives to replace cash.

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