Bitcoin Forum

Posted today on Reuter's wire:

http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html

They are thinking about it!  Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?

They already have a digital currency, what do they need a crypto currency for?

You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.

this is not new! they have been working on it for a long time. the plan to create their own blockchain has been around for a couple of years now and they are working on it hard. but it won't be exactly the same cryptocurrency as we know. probably won't even be public or open source or anything like that. you will just have access to the wallet they issue and nothing else.
in the end, no matter what is created, bitcoin remains the decentralized cryptocurrency that everyone knows. and theirs will be another altcoin a heavily centralized one this time.

Easy answer : This Alt coin will be a copy of fiat currencies under full government control. Instead of money being printed from thin air, supply in this Alt coin will be managed by central banks. < They can change the supply at will, without ever having to have any type of consensus from the citizens >

Once these Alt coins are in place, pressure will be placed on Bitcoin users to stop using it. < strict regulations and laws >

Governments < let's say most > are chosen by their voters, so if you allow this to happen, you are part of the problem. Vote for a government that supports Bitcoin.

Nothing will happen to Bitcoin, because banks are already working with virtual currencies using encryption right now. They will never issue a crypto currency, that

a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...

Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.

Nothing will happen to bitcoin mate, banks knew it and planned it even before when crypto currencies are starting to bloom. The only thing that it's still different to crypto, it's not decentralized, we know on how banks are running and they will not get the sentiment of the people that are enthusiasts and optimistic about crypto currencies and especially in bitcoin.

This can be true. Governments via their central banks can issue their own version of cryptocurrency and can even be backed by the government but they can never be cryptocurrency in the strict definition of the term because of the embedded control which the government can yield on the currency. Well, they can impose order for people to patronize it in place of the fiat money but it does not mean that Bitcoin can be gone. Bitcoin has the ability to evolve and transform itself if there is a need it sees. Plus it can take many years before any government can be able to perfect their own version of cryptocurrency.

True.


Central bank (or any central control) on a crypto = less secure = means open to manipulations and hacks = worthless

Decentralization with no central point of failure = maximum security = cannot be manipulated nor hacked = safe and sound store of value
=Bitcoin

If the central banks starts to issue their own cryptocurrency then it will not affect bitcoin a lot because people are now smarter and they will use bitcoin more than the central bank's cryptocurrency because bitcoin has a higher potential in profiting because it is decentralized and it is not controllable by the central banks or even the government.

They either saying, they're giving up control or deceiving people by marketing. Cause you know, "cryptocurrency" is hot right now. I bet their just going to make a digital version of whatever they're issuing. Cause if they calling it digital currency it wouldn't make much buzz, so they're calling it cryptocurrency as it is so much sexier.

It'll make the case for Bitcoin that much stronger.

A centrally issued crypto, not that it'll have the same principles, would up their level of control to nightmarish proportions.

Right now regular currency is digital but it runs through a labyrinth of private banks, routers and obscure systems. With something crypto esque the central bank retains full control over absolutely every aspect.

They can inflate, deflate, shut down, devalue, debase, bail in, lock you out, all with the press of their one big red button after one meeting.

It will never replace BTC.

The real threat is when they will launch it, they will try to force people to buy it instead of BTC.

If they do not allow bitcoin, if owning bitcoin becomes a fraud, then even if I do not believe it would kill BTC, it would be hard time for it..

well it will be a very interesting thing. the technology is out there and it is open source so everyone uses it. and if banks use it to improve some of their systems, then even better. we will continue using them too.

but that doesn't mean anything about bitcoin and how much people are using it should change. bitcoin is not just a cryptocurrency that uses the blockchain technology.
instead it is a cryptocurrency that does these:

Nothing happens.
Banks can do whatever they want, but a cryptocurrency that is regulated, inflationary and centralized is no different or actually worse than FIAT due to the technical limitations that encumber it.
Bitcoin will thrive no matter what.

Nothing going to happen with bitcoin because it's the original form of cryptocurrency even it will gain more value for being the trendsetter the oldest thing gain more value.

Yet another premine altcoin :D

Yes I agree with you, since Bitcoin is base of all coin so when central bank creating their cryptocurrency it'll become altcoin, their coin can't replace Bitcoin even it's made from central bank ;D

I would understand why it could get to that instance but i guess its just another economic problem to have a cryptocurrency version of any fiat that is out there. Its like making another money with the same value. They already have electronic money and it would take many years to put there currency in regulation and i think they would also need there own blockchain if they want that currency to have free and fast transactions.

bitcoin will continue to grow, ignoring it. all know at cryptocurrency is currently growing rapidly, taking part of the world's business control.

Its just all the same and this news isnt really new anymore which Banks would really issue their own coin but i guess why would they do such thing and would bother to do so? It would be just like on local fiat itself if they would made their own coin and people will really still look up on a decentralized one rather than on a centralized one.They can really stop people on using such thing.

well they already have digital currency which is faster than bitcoin and other crytocurrencies so, why do they need to create an altcoin? they only want is the blockchain technology which is the public legder of all transactions stored in the blockchain and the reason is they want to track all of the bank transactions.

they can surely made their own Altcoins and not exactly like another bitcoin, and I think it will not be very competitive just like other Altcoins today but I think people that knows about that bank will surely use it, banks right now have a tendency to control bitcoin but they don't have the power to do so, so instead of controlling or stopping it, they will make their own.

A government backed cryptocurrency might increase the efficiency of a centralized financial system, but is it going to have any impact on Bitcoin? No. The concept behind a centralized cryptocurrency is the same as the concept behind cash, just digitalized tokens of Fiat money. Unlimited supply, same old flawed monetary system, backed by the government, and still prone to hyperinflation.

The ideology behind Bitcoin as a cryptocurrency is a decentralized, apolitical, permissionless, trustless system. It offers an alternative to people who have lost faith in the flawed monetary system. Representing Fiat as cryptocurrency isn't going to change the underlying flaw.

They dont really have the power to control bitcoin and this is why they are making such step so that they would able to recruit those people on the place to use it instead specially to those people who dont have knowledge or awareness on bitcoins existence for sure they would end up on using that coins made by them but for those people who do have known about bitcoin already then they will surely neglect this thing.

THAN the scenario will change totally,
every country will have own crypto , That may be effect on bitcoin value.
Bitcoin still has advantage if central banks issue own crypto because bitcoin is decentralized,

Issuing digital currency on a private blockchain is not much different from legacy systems where the central bank has full control over the money supply. If you have a private blockchain then you have a central authority or at best a group of influential players who can change the rules. Countries cannot win this one.

This is so true. If they issue their own cryptocurrency it's gonna be an electronic money (though they already have it) it's not similar to the bitcoin so it will never replace bitcoin. This is a topic that is always discussed in this forum, I personally think that blockchain will be used by the banks in order to make their service cheaper, faster, and more efficient. There are so many considerations that they must think before issuing their own crypto, like they said in that article the risks of issuing crypto could not yet be fully assessed.

It will be beneficial for Bitcoin unless Central Bank launches it as in opposition to Bitcoin or to eradicate the use of Bitcoin from country.
Otherwise the concept of cryptocurrency will automatically ponder the buzz about Bitcoin among the public. Public would like to keep Bitcoin all along with National cryptocurrency because when people compare the two, Bitcoin will be one with more return as the latter one will be more stagnant since it will be regulated one.
Hence it will only lead to prosper Bitcoin.

Even if the banks issue their own crypto currency,i think that it will not get much popular because people would not want once again to deliberately get caught in the hands of banks.Such currency would not be a decentralized currency like bitcoin.It would not gain support globally and in no way,it could replace bitcoin which has been the ultimate choice of investors world wide since it has given them the true financial freedom.Such currency issued by banks may be only bought by people who don't know the true potential of bitcoin.

Banks and governments can force people to use their currency, if they give salaries in their new crypto currency people will need to use it for many things paying and buying. Country with most population will have high demand for this crypto, because many store's, companies, will sell their products for their own crypto currency.
Bitcoin is good because of the story behind it, countries that make their new alt will have alt that have s flag, and bitcoin doesn't have it. Satoshi Nakomato is you and me, that means everyone. Without a flag, origin and religion, anyone can adopt it and to not be nervous because of it. Russians will never adopt dollar, US will never adopt Kuwait dinar, and so on but bitcoin is suitable for all the countries and people in the world.

yes, the trust rate and news of the currency will heighten. Since there was no international central currency before now, it will just assume the position. U think Government don't know what it will look like, the only help it bring to government is to have reserve for bitcoin now at a larger  quantity so it can be like every other hardfork.

Bitcoin has its own value, no matter if Central Banks start issuing their own cryptocurrency it will be simply cash in form of online money nothing else as it will be controlled by a group of people who can increase and decrease the price according to theirs profit. The biggest difference between these 2 currencies would be that one would be Decentralized that will be Bitcoin and other will be Centralized. So there will be very less effect on Bitcoin.

Central banks can't manage fiat currencies so I don't see them being successful managing a cryptocurrency, even with the help of the law.
Also, many people invested in BTC for the very precise that it has no link to any central bank.

Does anyone think the Federal Reserve or the European Central Bank, so good at quantitative easing (printing money), can be good at managing a cryptocurrency?

Altcoin is better than whatever they intend to create. It would be the perfect definition of what some forum members call s*** coin.
They seem not to get it. It is over for centralization, abuse of powers, opaque governance,  extreme Corruption, extreme poverty, currency manipulation, fascism, elitism, domination, lack of respect for fellow citizens, lawlessness, etc..
 IT IS complete waste of time to resist change whose time has come.

It will only mean one thing, they surrendered to bitcoin and accepted bitcoin, as the saying goes, if you cannot beat them join them. If central.banks started to issue their own cryptocurrency, the question is how much is it going to worth, since they are also listed in yhe stock market, they can say, it may be priced as the their price in the stock market, but are people.be wlling enough to use their cryptocurrency, if there are other banks that arr much known and has a lot of branches, which fiat will they choose as equivalent to their ctptocurrency. I think banks will really need to to think twice reagarding the creation of their own cryptocurrency, and there is also another thing that they will have to face, if they can make their oen cryptocurrency, so does other companies that has a value than them, so why would people try to invest on them if there is something better. What insee here is, if this happen, bitcoin's price will skyrocket, because if these banks will have cryptocurrency, it will only mean, that they will need to follow bitcoin, and for sure fiat by then is alrrady obsolete and bitcoin will be the standard, it is possible that 1xcoin from the bank will equivalen 1000 satoshis, that's how i see it, since it had happened before with gold, silver and copper, gold still valued high, though a lot are already using silver.

This is actually old news. We've been hearing about this for years. One of the key points of Bitcoin is the trust the community has in it. While we distrust central banks. Them issuing a crypto currency is not going to make us suddenly trust them.

I doubt that banks will make such thing. But if ever they create their own coins/tokens, I think bitcoin won't be affected that much. Bitcoin, for me, will remain as the best and most reliable cryptocurrency. Also, you can see that a lot of new companies today have created their tokens (most of these are ethereum-based), but only a few (or little) has been successful.

i think that in someday if the banks finished to learn bitcoin, they will make their own coins/tokens. if this is happen then people have more option to invest their money. if they want to use full decentralize then they can choose with the existing coins, but if they want to use centralized then they can use the coins from the banks. and now we can see that many companies is interesting with the blockchain technology and they are released their own coins like above me said.

yeah when they really making their own cryptocurrency it will break the tag line of bitcoin (and other cryptocurrency) about "decentralized currency" central bank will control all about their up coming alternative coin which they going to make. we don't see decentralized aspects  coin anymore of their coin.

A crypto currency distributed by a central bank, I don't see how that wold be any different that the local fiat.
Maybe because crypro currencies get more popular every day the central banks thought they want to participate and bring something similar on the market.
But I don't see who would want to buy a state controlled crypto currency.

Nothing! Btc is to strong nowadays. :)

Nothing new here, every country is planning to create their own crypto, the idea is to gained control of the transaction and taxed the users, everyone already know the government trick, the country just creating another alt coin and not  a lot people like this idea and not a lot of people  will interested

Nothing will happen, it will be one more cryptocurrency in the market. The main idea of cryptocurrency is its descentralization, so If you have a Central Bank issuing their own cryptocurrency, be sure that this isnt good. The whole idea of a Bank controlling cryptocurrency is unacceptable. History has shown us that Banks controlling fiat currency already is dangerous for people and with cryptos that wouldn't be any different. Since Bitcoin has became popular, they try in everyway have even a minimum control of cryptocoins and everyday we watch news of banks being related to cryptocurrency. Today I saw an article saying that the Barclays Bank, Credit Suisse, CIBC (Canadian Imperial Bank of Commerce),  HSBC, MUFG (Mitsubishi UFJ Financial Group) e State Street have joined forces to work on the so-called "single settlement currency" created by the Union Bank of Switzerland (UBS) to make financial markets more efficient. This single settlement currency aims to enable financial groups to pay for transactions between them or to buy securities and stocks without having to wait for traditional transfers to be completed. Now they want to work with central Banks from all around the world, but for me that just won't work!

They probably should ask themselves what is attracting so many to Bitcoin/cryptocurrency.
If they can identify and provide a better solution I bet nobody will be interested in Bitcoin. So can these elites aka government issued Cryptocurrencies offer 100% Privacy, Anonymity, true Decentralization and anti-inflation which Bitcoin currently offers.

Really funny how rival countries are seriously scheming everyday to bring down a Single Coin.

Am silent on the attack because their every moves  tend to push Bitcoin really high eventually.

It's quite understandable. How would you feel when something threatens the existence of your entire system? Governments are just trying to offer people an alternative, but they fail to understand that people no longer invest in crypto just because they are going up and down in value badly, or use it as digital currency, but also to escape from their barbaric governmental system. It's called financial freedom that people are after. At a later point when things become even more serious than is the case right now, the governments will slowly start to notice that change. Governments are very slow in catching up with things, regardless of what they are trying to get hold of.

although central bank has their own cryptocurrency, I don't think it will influence the bitcoin or even replace it. There is nothing happen with bitcoin because it is the first cryptocurrency and the origin. Nothing to be worried. Bitcoin will continue to grow, it is just tricks and controls of business.

There are a few possibilities. National and private cryptocurrencies can bring more attention to decentralized cryptocurrencies and serve as gateway for them. They can also help fight a myth that cryptocurrencies are bubble and ponzi scheme, because the launch of national cryptocurrencies would mean that the technology is sound. But there's also a possibility that national cryptocurrencies would be very centralized and have very few things in common with decentralized cryptocurrencies, and their proponents might use it to criticize the last ones. And right now it's not clear what effect will be more noticeable.

I think it will be more suitable for the prevailing of bitcoin all over the world. If the banks start trading and dealing in their own crypto currency then the trust of the people will build up very quickly over the digital currency, and the market cap and the value of bitcoin will rise in days. I think there is nothing to be panic that if the central banks have started bitcoin then what will happen. Nothing will happen.

We and also bitcoins need to adapt to economic civilization, if bitcoin develops unreasonably, it will destroy all the economic and sovereign structures of the world. The government needs to set the conversion center into their currency, it will not be problematic with bitcoin because this is just a way to prevent inflation in Fiat.

Nothing will happen if they just start their cryptos.
The scenarios depend on a lot of facts and most important on the laws that will be passed.

Let's assume that once the crypto is launched the government of Angola decided to ban all other cryptos.
Probably the effect on the ban will be 0 as well as the launch of the coin cause everybody is so damn poor they don't have BTC in the first place.

Now, let's say the one that does this move will be the US government.
You can expect the price of BTC to plunge to the levels of the Silk Road shut down.

It doesn't matter what currency they would issue and how they will do this, what is most important would be thier attitude to BTC afterwards.
And allow me to be a little pessimistic about his. Especially if we talk about China, Russia and the other countries with same politics.

The old institutions are outdated and where they might have served to benefit civilizations in the past, their power has waned to the point that they must focus only on self preservation and this is only to the detriment of civilization. populations are unable to percieve this because our worldviews are carefully narrowed by our own processes of personal growth within a complex and frightening real world that would paralyse us with fear and indecision.

Governments are completely under the control of banking cartels. and the media, academic cartels head up our pantheon of exalted gods who thrive in harmonious cooperation because of their shared strategic interests.

The fiat coin will be called cryptocurrency and the belief will be reinforced by powerful propaganda campaigns that permeate all areas of life.The adoption by merchants will be compulsory, usage convenient, and incentive campaigns will abound.

Misinformation about the nature of cryptocurrency will be encouraged because it makes it difficult for the ignorant to differentiate between the false crypto and the real.
It will also cause the ignorant to make more mistakes and take greater losses and this effect is desired because it will hurt the image of bitcoin.

In their hubris the intelligence community will continue to hoard security exploits and leak them to criminals who can then terrorize the vulnerable public.
Many will flee into the arms of authority.

But cybersecurity is much more difficult for the centralized systems. and serious incidents will spur people to educate themselves and one another.
The vulnerable human persons who operate even from within the great and terrible organizations will feel the cooling of the fires of fiat privilege by the incentive of real cryptocurrency ecosystems.
Finally, the coming of new generations will continue to place greater and greater disruptive pressures on the outdated institutions as they age and begin to crumble.
Every glimpse of truth helps us find our way to wend closer to the path of reality and allows life to continue to stave off extinction.

This is happening and the rates of what happens and to what degree and when they do are not yet written.

We got to know that just if bitcoin can increase its value all the more so does our chances to mitigate a cataclysmic transition into the future.

That would be the surge of btc, and for bank having their own crytocurruncies they will having some way of any possible problem to implement it on the people out side the world

It would just be another fiat money though in digital form and will never be on the league of the Bitcoin or even Ethereum that we know of. In fact, if not manage right, it can even be a big joke. Why? Cryptocurrency came into being because we want to get away from the control of the government where anytime they can just order to print more paper money thereby slowly destroying its own value and can lead to more inflation. I know that China and Russia are right now planning to have their own state-controlled and backed cryptocurrency. Of course, since it has the backing of the government there can be some success initially but people will just revert back to the paper money because the government can not create any possible future gains for the users or holders to use the digital currency they are introducing because the value is controlled by the government. Again, in the end, it would just be a big joke.

Exactly, crytpo is resistant to how legacy centralized systems work. You have to give up control to be trusted. Banks could make a crypto, but then they would have to give up all control of it.

Also when we get to the x Trillion mark, banks just wont have the money anymore.

I am not saying banks or fiat is intrinsically bad, as they can bring capital and energy Labour, although if I can say they have become massively sub optimal due to lack of competition which then translates to massive and systematic miss allocations of wealth driven by gov policy (via issuance of licenses) and total lack of market discipline.

I don't think there is any part of the economy that remains untouched by quant easing, bad loans, bad allocations of wealth.

Essentially the face value of money is completely delinked to work value, and we are in hyper inflation at near record low interest levels.

Look at cost of living and property costs, both types of commodities that are hard to rig going up massively.

BTC is the only un-rigged asset left.

The learning curve in cryptocurrency is way too steep. How are they going to launch an indoctrination program when it comes to their cryptocurrency. The central banks cannot possibly make that happen. In the case of bitcoin it took 8 years to indoctrinate people to come to a point where they know everything about it. Through word of mouth. But banks can't do that. They need 100 years to make people comfortable in using a central bank issued cryptocurrency. Besides it is a scam. They can't create a cryptocurrency as popular as Bitcoin. Bitcoin community is spending zero dollars to promote itself for the past 8 years. But central banks can't do that even if they spend billions nobody would want it. Bitcoin rose to popularity because people hated the incompetence of central banking. So why would people with cryptocurrency skills adopt a central bank issued cryptocurrency.

i agree if cryptocurrency manage by the central bank have rules to reagulate the bitcoin how to control like fiat money and taxes for bitcoin as currency are scary it because all currency under control by the goevernment have regulation.

Nothing will happen if they will issue their own cryptocurrency and they are not for the cryptocurrency because they have their online banking and other the same features which is centralized. They'll not going to gamble their business for cryptocurrency because it won't be called as a cryptocurrency if it is centralized. Crypto's are well known of it's decentralization and even if they will issue their own crypto, I doubt it many will fall for it but only those uneducated people about crypto.

I think bitcoin needs to forge its own course and stop looking over its shoulder at what central banks are doing. The primary difference between bitcoin and central bank issued crypto currency is, and always will be control, borders and community. Central banks want to control their currency, dont want community consensus and will run a currency to the benefit of their country not the world.

When central banks start issuing their own digital currency, sometimes the circulation of bitcoin might decrease to some extent. The same never lets the bitcoin fall in value or go out of use. Also when each country's central bank issues an cryptocurrency the usage gets limited within the country and for cross border transactions a common asset is required. Bitcoin might serve as the common asset.

I think yes because now a days almost all altcoins connected to bitcoin

This is definitely what they would be considering in this era where the cost of printing money on its own is still expensive despite the several methods of e-money developments that have happened over the years. So any technology that would continue to push their cashless policy forward is welcome. However, the concern would be centred around the acceptance of it in the society since its going to be limited to respective countries.

Nothing will happen Bitcoin will show his strength.

There are so many consideration upon implementing the blockchain technology​ in a central bank. And for sure this cryptocurrencies won't be decentralized, and it would be implemented for their own good and not for the sake of their citizens. Also the central bank won't made a clone of bitcoin or any other alts for the reason of they will always need to follow traditional ways for legality purposes. In that case, I don't think consumers would be liking that thing. So bitcoin will always be their 1st choice, unless they totally forced their citizens to use the central bank issued coin.

Of course this is the thing I really look forward to, if the central bank start using cryptcocurrency it will make the coin very popular and easy to use by anyone including from other countries.

The digital currency of a particular country will play a certain role mainly within a particular state, which issued this crypto currency. Great value such crypto currency will not have. They in no case can really compete with bitcoin or even other well-known decentralized altcoyins.

Decentralized will always beat centralized. Bitcoin and other cryptos will continue to thrive even if banks start to issue their own.

Yes I support this statement vote for government that supports bitcoin but which government do you think will support a decentralize cryptocurrency called bitcoin as they dont get tax if they support it.

I don’t think this will affect Bitcoin in any way. People like Bitcoin because it’s separate from “Big Brother” and I don’t think there will be so much enthusiasm for a crypto project from the major banks.

if talking about a bank, it would have something to do with the government. then what does a government want? would want it all controlled by it. if any bank in a country makes altcoin, I think it's very clear the purpose is to be in control in a centralized environment and I do not think it can be public. and I do not think it will affect bitcoin, bitcoin is public and financially free.

I believe that if central bank start issuing their own cryptocurrency there will be a very strict regulatory measure attach to the supply and circulation of such cryptocurrency.

I don't see why a central bank would issue a public cryptocurrency.  Central banks don't interface with the public, only other financial institutions.  The primary purpose of cryptocurrency is to remove need for trust between the parties involved, and banks have to implicitly trust the central bank and to some extent each other.  This is the area for central bank to offer a cryptocurrency, to use a secured searchable blockchain to know who holds and owes what, and to whom. 

Digital currency has already been existing for years with banks being the prime mover.  They are only different with bitcoin because they are centralized and not distributed.  And even with this already online bitcoin wont still be affected because there are features bitcoins have that banks wouldnt even dream of creating.