In this podcast with Tiffany Grant on Money Talk With Tiff, I delved into the fundamentals of crypto and highlighted the difference between central bank digital currencies (CBDCs) and programs like FedNow. Many Americans are being fed conspiracy theories that FedNow is a precursor of CBDCs, which I am categorically saying is not true. I also conceded that Bitcoin is digital gold because of its robustness agaist manipij, except that it’s value will be in the applications that will be bult built around it.
Here are other key takeaways from our discussion:
● While Bitcoin is often viewed as an investment, the value of other cryptocurrencies is determined by their practical use cases.
● CBDCs can facilitate direct transactions without relying on traditional banking systems, but resistance from banks may arise due to potential profit losses from credit card transactions.
● The US Federal Reserve’s FedNow program, distinct from a CBDC, enables instant payments between individuals by digitising money held in bank accounts.
● Financial transactions are undergoing a reduction in intermediaries, promoting a move toward personalised finances.
● The personalisation of finance empowers individuals with greater control over their money.
Listen to the episode:
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