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The rise of cryptocurrencies and stablecoins has led governments to consider issuing their own forms of digital currencies. Countries like India and China are already testing the digital rupee and digital yuan, respectively, raising questions about the use of fiat money.
Governments are seeking to introduce Central Bank Digital Currencies (CBDCs) to compete with cryptocurrencies and stablecoins. CBDCs are just like the money in banks and smartphones but do not have a commercial bank intermediary. The Avorak team believes CBDCs cannot replace Bitcoin or utility tokens like AVRK.
What are CBDCs?
Central Bank Digital Currencies (CBDCs) are a form of digital currency issued by a country’s central bank. They are similar to cryptocurrencies except that CBDCs are equivalent to fiat currencies, and their prices are fixed by the central bank.
CBDCs aim to provide users with privacy, security, accessibility, convenience, and transferability. CBDCs are also cheaper than traditional financial systems, which have a high maintenance cost and expensive cross-border transactions.
These digital currencies are much more stable than highly volatile cryptocurrencies, and their value fluctuates over time. CBDCs are backed by the government and controlled by the central bank, giving users a more secure way of exchanging digital currency.
CBDCs On a Losing Trajectory
More than 100 countries are researching or testing the issuance of CBDCs in their economy, including Russia, China, Japan, and Brazil. The Bahamas was the first country to introduce a CBDC called “Sand Dollar” in October 2020. Nigeria was the first African country to launch a CBDC, the e-Naira, in 2021.
Despite the tests, CBDCs are on a losing trajectory. They have been closely associated with intelligence systems that will allow governments to track down transactions. This is not how privacy works. People prefer to use traditional decentralized cryptocurrencies.
CBDCs Cannot Replace Bitcoin or AVRK
Despite being similar to cryptocurrencies, CBDCs have no chance of replacing Bitcoin or utility coins like AVRK. Cryptocurrencies offer much more benefits in terms of security, transparency, and decentralization. CBDCs are issued and controlled by the government, whereas cryptocurrencies promote decentralization, meaning no central rule exists.
AVRK, on its own, is a unique token that offers unique features to holders on the Avorak platform. Avorak AI is the first-ever blockchain that leverages new technologies like artificial intelligence to provide services that simplify activities on the blockchain.
Avorak AI provides users with tools for trading, image generation, and text generation, among other activities. Avorak Trade, for instance, is a tool that helps traders make proper trading decisions based on a market analysis. The tool also generates automated trading indicators that will outperform traditional trading indicators like basic moving averages.
To get access to Avorak tools, one must purchase AVRK tokens. Avorak AI is currently in phase 8 of its ICO, and users who buy AVRK in this phase will be awarded a 3% bonus. As the ICO event comes to an end, the team is launching one last bonus event to say “thank you” to early participants.
Conclusion
CBDCs are seen as a threat to physical cash but not to cryptocurrencies like Bitcoin or utility coins like AVRK. As more countries adopt CBDCs, crypto is only getting bigger and is here to stay. Investors are currently eyeing new and innovative solutions to the blockchain, such as integrating artificial intelligence. Projects like Avorak AI are already making a name for themselves, despite the project still being in its early stages.
Learn more about Avorak AI on:
Website: https://avorak.ai
Buy AVRK: https://invest.avorak.ai/register
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