The death of CBDCs or so they want you to think

Trump seems to understand the business effect of labels quite well, I mean, he has literally built wealth and stability on selling the gold labels after nearly going bankrupt.

For those who don't know, apparently Trump was on the brink of bankruptcy with over $3.4 billion in debt before he began licensing his label(name) “TRUMP” to businesses for a fee. Reportedly, by 2015, nearly 40% of the 62 buildings bearing the Trump name were not owned by him but operated under licensing agreements that made him good money.

The name “TRUMP” essentially rescued him from bankruptcy because it was a good label, rightly perceived by people.

Good labels are money makers, badly perceived labels, well, they do the opposite.

There's a reason why we call it “AI Agents” and not “AI Bots”. Matter of fact, it is even better if we call chain-level bots “Smart Agents” as AI in itself is poorly perceived by some and smart here just somewhat represents some features of blockchains like “smart contracts(automation).”

Evidently, labels can make or break so paying close attention to what's more welcoming is how you win the market.

Trump clearly understands this given his history, or at least he has people working with him that do and they are clearly working the numbers with this one. That is what is happening with choosing “Stablecoins” over “CBDCs” as one is a welcomed label while the other isn't.

But…

CBDCs bad, Stablecoins GOOD; right?

Stablecoins GOOD, sure, but which ones?

USDT? USDC? RLUSD? USDD?

Anyone who knows these stablecoins understands that I've not mentioned a single “GOOD” stablecoin in terms of playing to the values and goals of the cryptocurrency ecosystem.

The executive order “STRENGTHENING AMERICAN LEADERSHIP
IN DIGITAL FINANCIAL TECHNOLOGY” is an interesting piece I'd admit. It covers some interesting things including crypto mining and software development.

Essentially, the order is intended, as written, to provide technology-neutrality to the regulations of the ecosystem.

The most interesting part:

taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.

promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide

First off, a CBDC does not threaten the stability of the financial system, said system is already threatened by the flaws of traditional monetary policies of which CBDCs would only be continuing on a digital level.

That said, when it comes to privacy, asides privacy coins, nothing on the blockchain is truly private, with the right amount of resources allocated to working on any address or transaction, figuring out who is behind them just takes time.

Now, if you consider centralized stablecoins like USDT, whose developments are effectively promoted and protected by this order, there's really nothing private about them and they have way too many centralized factors that's a much larger risk to the finances of individuals and the nation at large.

But of course they already know this and the greenlight will have its strings and best believe that companies like Tether will likely not mind a lot because it will play perfectly to how they run things.

The administration is taking away the label “CBDC” and pretending that stablecoins don't need the central bank to be a success for them to be a success.

The only people being fooled by all of this are probably those that think the government is generally after the merits of the people. Maybe Trump cares about the American people, but I don't see how launching a shitcoin helps them for instance.

That said, what I can say for certainty is that we'll, at some point, know what Trump’s end game is at the end of the day when this order becomes the reason a flood of anti-government tech and service solutions populates the cryptocurrency ecosystem and it becomes clear to him that the only way to slow down the adoption of it is to reverse almost every shit in this order and play the cards the last government had been playing.

Essentially creating room for the next opposing candidate to promise all he himself had promised, and just like that, the circle continues.

Make no mistake, this is a reason to be bullish as developments should accelerate, this is more of an attempt to point out what should be obvious and that's that centralized stablecoins = CBDCs by proxy. All they have to do is deploy regulation arms into these private businesses and they will do that extensively without much push back because the product these businesses are offering(selling to) the market is literally the national currency which is federally managed.

So they have a legal obligation to do as the government says.

Posted Using INLEO