Libra is yet to be operational since the regulators are creating \u201cinsurmountable barriers,\u201d according to the major crypto reporters.<\/strong><\/p>\n But there are speculations that both the digital coins might have some chance if Central Bank Digital Currencies or CBDC\u2019s are launched by the central banks around the world.<\/p>\n A former Indian central bank governor said<\/a>, \u201cI would like to think that these private currencies are also in competition with the central bank digital currency.\u201d<\/p>\n According to Cointelegraph<\/a>, Central bank digital currencies are the representation of the fiat currencies. Recently, China announced its own CBDC pilot program with a capacity to disrupt the global dominance of U.S Dollar.<\/p>\n With the power of technology, these currencies can quickly take over the world. The digital fiat forms are cheaper, faster, and borderless. So central banks will have the authority to decide whether the CBDC will be available for the general public or wholesale use.<\/p>\n In either case, central banks are working on the role of settling banks in the system. Already top financial experts are working on the subject and Bank for International Settlements<\/a> (BIS) is claiming that they had significant success in designing papers and diagrams on the taxonomy of the new digital money.<\/p>\n Bitcoin was launched in 2009 after publishing a whitepaper which shaped the future of the cryptocurrencies. The whitepaper says that Bitcoin will have no central authority but a blockchain network will be used as a public ledger.<\/p>\n \u201cBitcoin is a little bit like gold, in fact, gold has some value because we value it for jewelry, but bitcoin you can\u2019t even do that. Nevertheless it has value because others think it has value.\u201d Raghuram Rajan, former governor of the Reserve Bank of India<\/p><\/blockquote>\n So it will be difficult to say how Bitcoin will be benefited from the Central Bank Digital Currencies in the upcoming days.<\/p>\n However, Libra is taking a more centralized approach. Rather than being a speculative asset Libra will be a stable coin. Hence, we can predict that if the central banks launch their own digital coins Libra will get a more positive lift than Bitcoin in the future.<\/p>\nWhat are the Central Bank Digital Currencies?<\/h2>\n
![\"How](\"https:\/\/businessner.com\/wp-content\/uploads\/2020\/08\/How-Central-Bank-Digital-Currencies-can-Offer-a-Path-for-Bitcoin-and-Libra-Venn-Diagram.jpg\")
The Role of Central Banks for the Private Digital Assets<\/h2>\n
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