A Path of Challenges: Will CBDCs Prevail Over Private Blockchains? – Cointelegraph

Real innovations and breakthroughs don’t happen in the blink of an eye. Bitcoin (BTC) took many years to get to mainstream users since its inception in 2009. The bull market run in 2017 drastically improved crypto market volumes, but institutions still regarded it as another “dot com” bubble.

Later, when distributed ledger technology, or DLT, was more widely accepted, a new type of digital asset aimed at bringing stability to the crypto market gained full recognition. Stablecoins had been (and still are) issued by private firms, but many failed to operate successfully for various reasons in 2020.

Now, governments are exploring ways to not lose their grip on global finance via technology, developing stablecoins and central bank digital currencies, or CBDCs. What will prevail over time, private initiatives or state?

Trusting the blockchain

The latest research from Big Four audit firm Deloitte indicates that nearly 40% of the firms surveyed have already implemented blockchain in their business ventures. However, the commercially viable immutability of DLT has both pros and cons. An evident benefit with this technology is that no one can retroactively forge crucial data or alter vital information. Blockchain is a perfect demonstration of the trust quantification model gone live.

As to the tech’s downsides, even parties who can’t afford any chance of error still make mistakes from time to time: judges, prosecutors as well as various governmental bodies at large. Moreover, all the official services or banking structures experience