CBDCs are a few years off, but govts are researching it now.

An Australian CBDC Pilot report was released today, done by the RBA and DFCRC. Here are some things I noted from a quick look through it:

- They're looking at functions like 'smart payments' e.g. to automate GST collection

- They did explore 'direct control' with the pilot CBDC where the holder performs the tx in a non-custodial fashion. They also had other structures such as custodial and pooled ownership models for CBDC tokens.

- Legal, regulatory, technical and operational issues were explored that they'd need to resolve before any kind of broader roll out. They acknowledge that serious exploration of this is years off.

- They seem focused on tokenising things and trading them around atomically, even mentioning HTLCs (a concept used in Lightning network today). This also included some typical statist causes such as tokenised carbon credits, NSW 'biodiversity' credits. But also more general ideas like supplier invoices.

As a Bitcoiner some reflections I have are that they're very focused on payments.

Whereas the big shift I see with Bitcoin is that it's a new savings asset outside the state's control. Of course, with Bitcoin you can do payments, and the Bitcoin ecoystem will build out advanced functionality on lightning and payments, Discreet Log Contracts, and smarter scripting - but the mere fact that it's all based on a new unit of account is what makes Bitcoin unique.

This is Bitcoin's unique selling point. So while TradFi can replicate faster payments and try to tokenise assets, the real story with Bitcoin is it is an alternative monetary system.

Bitcoin is a monetary system that more and more people will want to be part of, because it offers an unrivaled level of freedom.

A native bitcoin-only backed US Dollar stablecoin.

Borrow stablecoins against bitcoin as collateral.

1. Permissionless and open-source protocol (hard coded)

2. Non-custodial

3. Censorship resistant

4. Privacy oriented by default

5. Confidential transactions

6. For-profit business

7. Sustainable and transparent business model

8. Fixed interest rate

9. No time limit for repayment of loan

10. No KYC

11. No coincontrol (freeze/reverse is not possible)

Your thoughts?

The problem:

I advocate for a bitcoin-only world and am opposed to utilizing the US Dollar, which I consider to be the largest pyramid scheme globally. Nevertheless, given the current global landscape, everyday individuals find themselves urgently needing to distance themselves from their local currencies—such as the Argentine peso, Venezuelan bolivar, Turkish lira, Iranian rial, among others. These individuals lack the time and inclination to become well-versed in the principles of sound money and the flaws of fiat currency. Their primary goal is to acquire a better form of currency compared to what they possess locally, asap!

Unfortunately, the US Dollar remains the most reliable currency worldwide at this moment, prompting individuals in these nations to seek payment in and prefer transactions using US Dollars, rather than relying on their local currencies or bitcoin.

The present stablecoin market is a shitshow. The majority market share is held by Circle and Tether, centralized entities equipped with the authority to halt and undo transactions involving USDC and USDT on any blockchain they are issued on. This is a mini-version of the future CBDC.

Additionally, there's a necessity for people to trust that these two industry giants genuinely possess a one-to-one dollar reserve in their banks backing the stablecoins, and further, trust in the stability of their banks. Given the frequent occurrence of fractional reserves, corruption, and financial insolvency in this sector, these concerns are valid.

Compounding these issues, individuals requiring a "stable" currency like USDC/USDT are currently utilizing the solution on the Tron blockchain for transacting with these stablecoins. Clearly, a far superior solution is needed.

This prompts my extensive investigation and analysis to propose an improved alternative. The bullet points preceding this text outline the aspects I believe could be developed and be a better stablecoin solutions until bitcoin will become a medium of exchange in the future, hopefully.

I am interested in your perspective—do you believe the market demands a new stablecoin characterized by resistance to censorship, sole backing by bitcoin, and a strong emphasis on privacy?