Could CBDCs Crush Altcoin Returns? Investors Beware.
Picture a four-lane highway suddenly upgraded with a government-built bullet train. Commuters who once tolerated toll roads and traffic will board the shiny new line the moment it starts running. The same dynamic may be coming for crypto. Central bank digital currencies (CBDCs) are edging closer to launch in the world's largest economies, promising 24/7, fee-free settlement backed by the state.If that rail goes live, why would ordinary people keep routing payments through privately issued cryptocurrencies that charge gas fees and carry protocol risk? That question should be front of mind for anyone holding payment-focused altcoins today. Let's investigate this issue in closer detail.Image source: Getty Images.Continue reading
Picture a four-lane highway suddenly upgraded with a government-built bullet train. Commuters who once tolerated toll roads and traffic will board the shiny new line the moment it starts running. The same dynamic may be coming for crypto. Central bank digital currencies (CBDCs) are edging closer to launch in the world's largest economies, promising 24/7, fee-free settlement backed by the state.
If that rail goes live, why would ordinary people keep routing payments through privately issued cryptocurrencies that charge gas fees and carry protocol risk? That question should be front of mind for anyone holding payment-focused altcoins today. Let's investigate this issue in closer detail.
Image source: Getty Images.
