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CBDC isn’t a Government Bitcoin

Bitcoin mirrored the stock market's trend for most of Wednesday morning.

CBDC isn’t a Government Bitcoin iBase Trading.
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Bitcoin mirrored the stock market’s trend for most of Wednesday morning. For the first time in a long time, the stock market seems unconcerned with the escalating Russian-Ukrainian hostilities.

But by the middle of the day, the largest cryptocurrency by market value had fallen into the red territory after Ukraine declared a state of emergency and asked its citizens living in Russia to leave the country. U.S. intelligence said that a Russian invasion was going to happen soon.

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At the time of this writing, bitcoin was trading below $37,500. It had lost about 2% in the last 24 hours. Ether, the second-largest cryptocurrency by market value, was trading below $2,600, down about 1% at the same time. It was also down in value. A lot of altcoins had a good day, with Terra’s Luna up about 10%, and avalanche and Shiba Inu both making good gains as well. Cardano and Solana, too, woke up on the first day of the new year.

Bitcoin vs. CBDCs: Canadian Sanctions

Bitcoin is often compared to Central Bank Digital Currencies (CBDCs). Some think eCNY, China’s CBDC, is a government-backed bitcoin. But the Ottawa trucker convoy has shown otherwise. According to CoinDesk, the 34 Canadian government-approved crypto wallets are now mostly empty.

Users’ Secure Asset Fund (SAFU) is one of their funds. A minimum of $500,000 was moved to another wallet — possibly on a non-Canadian exchange or even self-held – and shipped abroad. But fiat money was choking in a dragnet. Protest ends when accounts thaw.

Canadian civil liberties groups are concerned about the freeze’s pace and lack of openness. The US Office of Foreign Asset Control produces a database that includes Russian leaders and billionaires, Iranian hackers, and Hong Kong leader Carrie Lam.

Fearing a repeat, civil liberties groups are appealing the court order’s constitutionality. Now bitcoin fixes it. But CBDCs are a concern. The main difference between bitcoin and CBDCs like eCNY is that bitcoin is decentralized and does not have a central issuer. CBDCs are a digital form of central bank cash.

Using Decentralized Ledger

CBDCs are not like Bitcoin or other cryptocurrencies in that they are made on a digital ledger. There is a good chance that the comparison between CBDC’s digital ledger and a permissioned blockchain is wrong.

China’s CBDC is very important because it controls the yuan. WeChat Pay and Alibaba made money digital for their payment rails. This could happen if you get too political.

An expert at the Center for a New American Security says that last year’s CoinDesk Consensus conference was all about being in charge.

CBDC and BTC are Unrelated

A drop in the supply chain of Xinjiang Cotton. He said that at Consensus 2021, everything is based on facts. He thinks that the central bank is getting more and more involved in the payment system. They are building a way for the government to get more transactional data.

In this case, truckers are using crypto to avoid government penalties. This shows that bitcoin has nothing to do with CBDCs. Only Fiat ramps may freeze in Canada, and they don’t survive long. As a matter of fact, though, an American or European CBDC would protect people’s privacy more than one from the People’s Bank of China. There are a lot of things that happen in Canada that make it hard for banks to get court orders to close accounts.

It doesn’t matter how you feel about truckers. We should hope that Ottawa’s is an exception and we don’t have to show that a CBDC is easier to control than bitcoin.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Jane De Leon is a news writer covering all things related to DeFi and NFTs. In the past, she has worked for a well-known Business Newspaper. She originally began investing in Bitcoin after hearing about it from her brother and hasn’t looked back since.