Central Bank Digital Currencies: A Replacement for Cryptocurrency? | Daniel Park | TEDxPangyo Youth

Cryptocurrency Market Overview - Bitcoin reached over $100,000 per coin in late 2024 [7] - A crypto crash in 2022 resulted in $1.8 trillion in losses [8] - $3.8 billion in crypto assets were lost through scams and thefts in 2022 [9] - Conventional cryptocurrencies are decentralized, leading to private markets with little government intervention [11] Central Bank Digital Currencies (CBDCs) - CBDCs are government-backed digital currencies regulated by central banks [11][12] - Over 130 countries, representing 98% of the global economy, are exploring CBDCs [13] - Countries like China, Nigeria, and Jamaica have already launched CBDCs [13] - The United States and European Union are considering joining the CBDC trend [14] Potential Benefits of CBDCs - CBDCs offer increased regulation and oversight compared to regular crypto, reducing scam risks [15] - The United States FBI reports that 71% of all investment scam losses were tied to crypto, with thefts increasing by 53% annually [15] - Jamaica's Basil AML index score decreased after implementing CBDC, indicating reduced financial crime liability [16][17] - CBDCs can promote financial inclusion by reaching the two billion people worldwide without bank accounts [18][20] Potential Risks and Challenges of CBDCs - A 2023 poll indicated that 76% of Americans oppose CBDCs due to lack of trust in the government [22] - Nigeria's CBDC, E Naira, saw only 0.8% of citizens opening a digital wallet, with 98% of those wallets being inactive [23] - Banks might lose 80 cents in deposits for every $1 of CBDC involved [26] - A shift to government-run CBDCs could lead to a 5% drop in industrial lending [27]