Ethereum’s co-founder, Vitalik Buterin, throws off the public impression that crypto would fail to compete with national financial infrastructures in response to governments all around the world’s increased interest in launching their own digital currencies. He shared his sharp take towards the matter in a Block TV podcast that aired this March 4. He also shared his thoughts on how he sees the currency moving forward, most notably, the future of decentralization.
Vitalik claims that digitalization in the future is inevitable and that decentralized privacy currency would appear more favorable than that of the Central Bank Digital Currencies (CBDCs).
Digitalization is inevitable
Vitalik emphatically states that with our without Blockchain technology, digital currencies would continue toward its foreseen mainstream adoption. He went on by comparing the three already existing sovereign, corporate, and decentralized variants of digital currencies as well as pointing out the specific challenges that CBDCs are currently facing.
He said that the main challenge for central banks and even the corporate currency is simply the concentration of power – in other words, the concentration of data collection. He added that they might become dependent on potentially central mediators that can implement concentrated control over those who can take part in such systems and those who can’t.
Vitalik firmly believes that there is a bright future currency to be decentralized and private. This is because they would be more durable versus “centralized chokepoints”, in his opinion. He added to this by saying that many situations have already been observed wherein things that are already perfectly legal just ends up being restricted as a result of someone running centralized chokepoints just because they want to prohibit certain users.
He ended his statement by saying that these are the precise reasons why the masses would continue to be interested in a fully decentralized digital currency.
Governments across the globe favor CBDCs than that of decentralized currencies
In stark contrast to what Vitalik believes; governments all around the world see CBDCs as the option for the future.
On top of that, central banks globally admit that the Libra Project by Facebook has pushed various central banks to sincerely look into digital currency initiatives.