Bitcoin Forum

Some governments and banks are issuing cryptocurrencies as they have realized that cryptos market is becoming too important to turn their backs on them. Some examples:

https://www.cnbc.com/2017/10/13/bitcoin-get-serious-about-digital-currency-imf-christine-lagarde-says.html

http://www.businessinsider.com/dubai-official-cryptocurrency-blockchain-emcash-2017-10

https://www.techworm.net/2017/09/india-bitcoin-like-cryptocurrency-called-lakshmi-coin.html

How do you think this will affect bitcoin market? Some people will only use what their government tells them is legal. Do you think it will have a big impact?

State backed cryptocurrency is fake news. You cannot create a cryptocurrency without people with technical know-how. And most nations are lacking the computer skilled manpower and the funds to maintain a cryptocurrency. This is fake news. Believe me.

Not sure it is fake, eventually, if Bitcoin has a future, this is the direction it should take. More regulations, more security bringing more investors, leading to a (high) more stable price in the future. If you are doing nothing illegal, such future should be positive news.

none of these you listed here are new. some of them have been around for a while, some have been projects that started new but have been in development for a longer time.
the banks have been working on blockchain technology for a while now. they know it is a strong and very useful technology for their banking systems.

mostly they are using blockahain technology, it doesn't mean they will release tokens/coins you can trade. it means their systems will be upgraded and their money transfer security will be improved greatly. things like that.

and even if some of them like the Indian Lakshmi or the Dubai thing release a coin, it still wouldn't matter. they will be centralized. and nobody will give up the decentralized and scarce bitcoin up for them.

I think at most they will become useless altcoins with a very low price and value on the market. Maybe they won't get even listed on exchanges. So they won't definitely affect Bitcoin in any way...

Most of the cryptocurrency users use bitcoin and altcoins because they are anonymous and decentralized.
A state-backed cryptocurrency won`t be anonymous and decentralized for sure.Governments and central banks want to track everything and have control over everything.
That`s why state-backed cryptos will fail.

This should be the case for some, among whom would be the ones actually using it primarily as currency. But many others are just in it because they see it as another source of income, and might not care too much about the details.

So far it's mostly just some very wild rumors and I see at least a few reasons why there won't be any "government cryptocurrency" anytime soon. First - it doesn't scale well, so they won't release it to population, second - it may hurt the image of their fiat currencies, third - governments may not like networks where every participants have full access to logs of all other users.
But lets imagine that some government would actually issue their own crypto - if this will be some centralized systems, than it would just be a digital fiat and most people would understand that it's completely different from Bitcoin. If it will be a real decentralized cryptocurrency, than it would just be an altcoin, and for buying/selling people almost always prefer Bitcoin over any altcoin.

I would not dismiss these as simply altcoins. It's going to be hard for Bitcoin to reach mass adoption once these come into play. Think about it: the state is going to promote it, banks are going to support it, and the vast majority of the population would rather trust it than Bitcoin. I don't see why the normal person would buy Bitcoin for their purchases when their state-backed online currency can fill the same need. Not everyone has this burning anger and distrust for their governments to the point where they would spurn their own currency. I'm not saying these coins will kill Bitcoin because it will always have its niche, but it might keep Bitcoin from ever evolving from its current state, which is basically a storage of value and an investment.

State-backed cryptos will mean nothing. They'll mean nothing unless they are buying bitcoins to stash reserves but the price doesn't reflect that. They'll try and issue their own digital currencies I bet.

I agree. This is why they can never truly kill Bitcoins. State backed currencies will never have the same amount of earning potential.

Banks and governments will certainly not stand by or support BTC if there is no interest for them.If banks can not profit from BTC and governments can not charge tax, they will try to make their own coins.In that case some people would certainly believe more in coins backed by some state and bank.

But BTC is still much more than money,it is also very valuable asset these days and many like it just because it is decentralized without control of any government,bank or other institutions.For the first time in the history people have something that they can control themselves,free money on free internet.

I think any bank or goverment can not offer anything like it,so there is not too much danger for BTC.

That’s what they are not massively adopted either. I haven’t been in the forum for over 24 hours and the first post I see is this one: https://bitcointalk.org/index.php?topic=2276139.0
Russia launching its own cryptocurrency. I bet that we are going to have quite a few of those in the future.


I think we can give our opinions here but we can’t know how they will affect. I wouldn’t consider them of low importance though. Maybe with state-backed cryptos we can have both sides of the coin: they will help bitcoin to be massively adopted but they will kill the current alts market. Only time will tell.

State-backed cryptos will have no affect on Bitcoin because that is a centralized ledger with a terrible development team. Greed will surely ensue on that network.