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G7 and new British prime minister promote CBDCs over bitcoin

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The arrival in power of the new prime minister of the United Kingdom, Rishi Sunak, an avowed promoter of central bank digital currencies (CBDCs), seems a clear sign of a global bet on this type of asset with the aim of countering the expansion of bitcoin (BTC).

Sunak, when he was Chancellor of the Exchequer under former British Prime Minister Boris Johnson, a meeting of G7 foreign ministers. supported plans to establish CBDCs in the member countries of that grouping.One of the most powerful in the world.

In the opinion of the current British prime minister, CBDCs are the form of payment of the future. “This is all part of the larger story of digital innovation that benefits millions of people around the world and in the UK,” he said in a press release. video.

He further stated that his goal is to ensure that CBDCs are based on “longstanding commitments to transparency, rule of law and sound economic governance.”

Rishi Sunak when he was Chancellor of the Exchequer of the United Kingdom.
Rishi Sunak, when he was Chancellor of the Exchequer of the United Kingdom, praised CBDCs. Source: @ODELL / twitter.com.

In this way, Sunak clearly expressed his preference for CBDCs over the bitcoineven though there are media outlets that have wanted to to sell the image That the leader of the United Kingdom is a bitcoiner.

The G7’s intention was reflected in a report produced last year (and supported by a new prime minister), which stated that the development of CBDCs, among other things, has the function of “monitoring global supply chain pressures.”

BIS bets on CBDCs

Following the G7 line, the Bank for International Settlements (BIS) recently released a report indicating that after one year of development, have successfully completed their first prototype CBDC.which they named “Aurum.”

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“We have no doubt that the Aurum prototype will catalyze and inspire the global search for the most appropriate CBDC architecture,” the author points out. document.

The project was initiated to develop a functional prototype to serve as a public good for the community. Of central banks, says the BIS.

Repeatedly, BIS wanted to prove that CBDCs are superior to BTCs. “Cryptocurrencies and DeFi have deeper structural limitations that prevent them from achieving the levels of efficiency, stability or integrity necessary for an adequate monetary system,” said a agency report reported by CryptoNews, last June.

According to the BIS, CBDCs represent a “more stable solution for a future monetary system.”

CBDCs are a trap

For Spanish economist Marc Vidal, beyond speeches and reports, CBDCs are a “trap” prepared by central banks that will lead humanity into socio-economic battles and a market economy. the only way out of this confrontation is bitcoin.

“CBDCs are not cryptocurrencies, they are not bitcoin, they are hybrids,” and they are only a desperate response of countries for freedom that digital assets like bitcoin provide, Vidal argues.

Vidal argues that CBDCs are “the last attempt of institutions to stay alive” in times when society already rejects them en masse.

Bitcoin is contrasted with CBDCs as the a transnational cryptoasset that does not depend on a central entity or institution.. It is also not subject to inflation like national currencies.

Precisely, Vidal believes that given the inflation that is affecting the world economy, central banks will offer their digital currencies as a solution to all economic ills.

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