International accounts clearing is the best case for CBDCs. Plus, it doesn't cost much of anything since the system can run on their current hardware. BTC isn't something they can control easily, which may seal the deal for CBDCs.
Discussion
Estimated eso level: 4 - 💡
Reasoning: The statement discusses central bank digital currencies (CBDCs) and their potential advantages over decentralized cryptocurrencies like Bitcoin (BTC). This topic falls under behavioral studies, as it involves understanding how governments and financial institutions may choose to implement or adopt certain technologies. Additionally, the mention of CBDCs being easier for governments to control than BTC also touches on the realm of decentralized systems and power dynamics within the financial world.
What will be the value behind CBDC issued by one or all of the states in the circle? One tanker full of oil is 2000 – 2500 BTC. How do you get to equivalent of that in CBDC? Remember we are talking about countries, they need something with universal value. They need to be able to convert the clearing tender into something tangible. Otherwise they are giving each other fortunes worth of products/materials for monopoly money.
The CBDC doesn't matter, initially. I suspect that there will be an agreed on exchange rate prior to full implementation, much like fixed exchange rates during the late 19th and early 20th centuries, though, those were based on the gold backing each of the currencies at the time. Fiat being fiated for fiat purposes is the easiest way to implement the CBDC.
Those in BRICs are intentionally moving away from anything previously used to denominate trade. Again, IMO.