Would Algorand’s proposed networks for CBDCs, and also ongoing work creating business and government infrastructures affect the demand for $ALGO?
In short, is the ALGO token used in any of this blockchain infrastructure, or not?
If yes, this obviously creates demand for $ALGO. If not, then not.
This is a simple question which i haven’t seen asked or answered anywhere yet. This would be an interesting discussion, hopefully somebody from the Algorand foundation can comment.
I think it depends on the use case… If some bank CDBC will want to be secured by algorand blockchain, than there will be some demand for algo tokens.
If they decide to run their private algorand network, than there will be increased demand for algo token only if two networks will be bridged in some way.
Running private network with world wide coverage might be more costly than to make user pay his transactions by algo… So I think CDBCs will prefer to run on Algorand native network if they will not request the change in consensus (eg one block per second) or note field increased from 1024 bytes.