Trump says that we're going to embrace crypto
(twitter.com)
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Crypto is just a technology. It can be used in millions of ways in addition to Bitcoins. CDBC is just a digital currency technology without necessarily having the crypto component to it.
"Crypto" aspect refers to the use of encryption in such a way that the ledger can be stored publicly without worrying about unauthorized access or tampering.
Think of it as a coast to coast highway - like route 66. You take the same highway whether you want to get off at California or Arizona or Texas. Where you end up will depend on exactly what exit you take.
The real crypto currency that is backed by some real assets, that protects privacy of people while at the same time provides transparency of government spending, with no central control is yet to be unveiled. High probability that its already in development.
This is my primary gripe, the existing cryptos that in my limited knowledge, is backed by zilch. If you're old enough, 15 years ago or so, people were flipping - collecting beany babies, cheap shit that can be produced over and over, with a tangible value of making some kid smile at best. I knew of two people who dumped 10's of thousands into buying and holding this shit for part of their retirement. I am sure you can see how it ended. The difference I see between bitcoin and this, is at least they got a stuff animal out of the deal.
Now back to something backed, I am with you on the anonymity at a high level. With something backed, I would feel a bit better, like the proposed fedcoin etc, but in the right hands and controls. I still see risk because I am old enough to remember when people never thought the standards of encryption would cracked. I get most of your points and I have more understanding to do on my side. I like the control aspect of transparency, that provides a whole lot clarity and honesty but still see too many risks, which admittedly, a lot is probably due to my lack of knowledge. I still prefer paper, but as you say, having a ledger prevents or provides a window to see the printer go burrrrrrrr.
Thanks for taking the time to provide some insight.
Let me say you are thinking about crypto far better than most people I know. You are asking all the right questions.
Also a crypto that does not have an intrinsic value is probably not gonna cut it. Only intrinsic value digitally, is computation and storage power. So a crypto that is implicitly backed by computational power - a distributed computational network, for instance - is probably one way to do this. The governments can purchase cryptos on this network to run their infrastructure, using their assets as backing - making it a true asset backed crypto with intrinsic value.
You are spot on Encryption. The only solution, honestly, is a off-world technology that we will never be able to crack. Probably something very esoteric.