Opinion: November 19, 2022. FedCoin Would Mean Extreme Centralization, the Opposite of Bitcoin

Bitcoin offered the world the possibility of having a decentralized asset, with finite number of them (a model of scarcity). The blockchain technology enables the transactions to be registered properly and be able to be verified.

Now, the central governments are working in the creation of central bank digital currencies (CBDC). These currencies would be just like fiat currencies in the sense that would be created by the central banks, but will use blockchain technology for the registration and verification purposes. So unlike bitcoin, it would not be centralized and it would not be finite.

If the plan is to replace the use of cash by the use of these CBDC's, what we will have is that money will be controlled from the central bank directly, all transactions would be known to it and the central government would have the power to activate or deactivate specific money at will. Some people are saying that this new currency may be named FedCoin

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This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.