Bitcoin Forum

There seems a sign that central bank are currently interested in the blockchain. So what will be the effect on current cryptocurrency if central bank release their own coins? will it be a good news?  ??? ???

It all depends on whether I will impose this coin on ordinary citizens. If it is compulsory, it may affect the market of crypto-currency, although it is not so important, if the central bank simply enters its coin and puts it on the stock exchange. In any case, this is aimed at ensuring that the state extends its powers to the crypto currency.

A Crypto currency is just as good as the people supporting it.... and this is exactly what would happen with the private

Blockchain technologies. People will decide if they are going to support these "GovCoins" or if they want to support Public

Blockchain technologies. {Decentralized/transparent/immutable and not governed by a central authority} If these

governments ban other currencies, people will turn to Black markets and using these currencies on the Dark Web, where it is

virtually untraceable. {This means ZERO tax for these governments}  ;D

central banks have already released a currency, that is called fiat. then they released a digital currency, which is their banking systems, cards,... making the same thing using cryptography and blockchain technology doesn't make any difference. it is the same thing using some different underlying technology.

so no it has no effect on bitcoin and any other altcoin that is not centralized.

if the bank launches nearly the same digital money and can work with the existing bitcoin and cryptocurrency it will probably make the market very crowded and I'm sure the volume of the coin will be rapidly high and yes it is like a good news.

I do not it will make any effect into cryptocurrency market. We already have XRP Ripple which is a centralised cryptocurrency. It is not issued by central banks however we may guess that the central bank release cryptocurrency will be similar to that. Bitcoin and all other cryptocurrencies are invented and used in purpose of making decentralised payments. Some of them even has privacy feature which is their most important speciality.
In the end, I think central bank release cryptocurrencies would have a really smaller effect on the current market.

First of all, banks operate using private ledgers. They will always claim that is due to the privacy of their customers, which has some validity. However, banks rely on issuing loans in order to gain profits and revenue, and they use their customers’ money pool to back those loans, which I believe to be the main reason they keep a private ledger vs. a blockchain public ledger.

If they were to create their own blockchain, I don’t believe it would be their sole method of conducting business. It would probably be used to be able to track customers’ funds, and provide transparency for those who opt in to have their balances available for display publicly at any given time. I don’t believe it will be successful for them to create their own digital currency, as they’ll have less access to create loans publicly using the pooled funds, as the blockchain wouldn’t allow them to use their customers’ funds without their initiation of transactions to back a loan.

Banks are all about profits, and most of them probably realize that there are no profits in crypto currency for their type of business model. Besides, if they did create their own crypto, there won’t be much of an effect on existing values of the major cryptos... it would be no different than a random ICO or shitcoin launch by a random Joe Blow developer.

Banks are interested in the blockchain as a system, because it can reduce the cost of their current IT system. There are several procedures that can be automated with a blockchain based new system. Also, they already have a geologically decentralized system with the necessary infrastucture (in branches, ATMs they have PCs that can act as a node and there's no need for specialized equipment for a blockchain like model because if one node fails, the others also have the ledger, so the risk of the data loss is minimalized with blockchain systems.

If people trust that, for sure it will affect the price as many people will sell their bitcoins and other cryptocurrencies for that currency. But I don't think people trust the banks that easy. Because they want to control the transactions and in this way there is no difference between that currency and fiat.

Such coin will surely target a specific group of investors. People who are too afraid of going rogue and making independent decisions. People who need someone to stand behind them and pat them on the shoulder saying it's going to be fine. They want to profit from crypto investments but would prefer it to be just like any other centralized asset. Less volatile and protected by law. Unfortunately, you can't have the cake and eat it.

I guess its yes, If central bank fully support the cryptocurrency it will affect the whole market maybe it is good to us that this crypto will get higher value if this will fully published by the central bank.

The price of their coin could go a little higher than Bitcoin though eventually someone will have to pay homage to Bitcoin and the price will explode.

I don't think they'll be more valuable than Bitcoins. These coins would almost certainly be centralized and non-minable. They will also be able to protect it against fluctuations and can manipulate its value to a certain extent. It's going to be kind of like Ripple, which is a cryptocurrency made for banks. If banks come out with their own, I don't think it will deviate far from that.

Either way, I don't think such a coin will be used for investment, but rather for utility. It would be completely open for market manipulation, and I doubt people will trust it with their hard earned money.

And do you really think that they will issue their own "crypto"? I am seriously asking this to you.

It would be a massive chaos, most people do not even know how to use a smartphone (i am serious) and you are expecting them to use cryptos?

No offense, but if that happens, it will take more than decades from now.

The MintChip digital currency, released by the Royal Canadian Mint, almost destroyed bitcoin. It was so popular that it lasted a whole year and a half before it failed. LOL

That would be a very positive signal sent to the crypto traders and beginners who want to put their money

If central banks will consider taking blockchain technology I think crypto currencies will be at risk especially bitcoin because I'm sure banks will no longer accept bitcoin transaction and just focus on their own coin unless their coins will just be an alt or a token . I'd love seeing the economy starting to adopt cryptos but I am hoping this will not lead for bitcoin to die.

Of course there would be effect because it would mean that they every other form of crypto currency is banned in the country and that is an effect on the market in the local country. However, depending on the amount of influence the country has on the entire market would now determine how far it would go. "After all, the youths said they wanted digital currency, now they have one what else are they still looking for outside that our own currency cannot provide".

I guess yes. Cryptocurrency of Central Bank will drafting the existing cryptocurrency.

I'd say it'll have a positive impact on the current market.

It will promote cryptocurrencies to the masses without us even having to do anything. The central banks are literally going to be doing the advertising for us in a sense. But then some investors may be more interested in central bank cryptos than actual cryptos, and be investing in them. So basically the decentralized cryptos market share may be taken up by centralized cryptos.

I don't think that's going to happen though. What we know for sure is that the government isn't going to let go of their ability to print money at will, so the cryptocurrency is really just a digital fiat currency, that's all.

Once a government issues their own currency online and promotes it, people will realise, hey this is not the real deal. The real deal should be 100% decentralized in production. And they'll rush to buy up the decentralized blockchain tokens.

Well I don't think the current market will be much affected by this because having a certain currency for central banks doesn't mean all other coins especially bitcoin will going to die or lose their markets because surely people will still continue to support bitcoin also I don't think central banks will ever create a coin as valuable and keeps appreciating like bitcoin surely they will set a limit on its price so they can have full control over it

As far as I am concerned, there won't be any effect at all on the existing crypto market. We do not have only one central bank in the world, so at the end of the day, each country may only end up having their own currency on the blockchain and it would end up just as any other altcoin in the market, except that it is centralized but cannot be forced on anyone and who will care about holding the coin anyway, except for just trading purposes.

Blockchain and cryptocurrencies (well, most of them) mean, before anything else, decentralization.
So, a CENTRAL bank releasing a CRYPTOcurency makes me laugh :D
If this happens, I don't think anyone will care except for those banks :P

yes I read some articles about many banks that will adopt blockchain. I have not tried to distantly distinguish this news, but if this is true. I think this is good news, because there will be many local banks in some countries that follow the same pattern. this is an innovation involving blockchain and bitcoin. maybe, in the future. bitcoin will be a universal part of our lives.

Many central Banks are planning to roll out the country's  cryptocurrencies (using blockchains)
I think this is a good thing for the cryptocurrency market. On the one hand, the country can learn about the inflow and outflow of funds. On the other hand, it is easier for us to exchange the legal currency.

I am sure it would have a positive effect towards the cryptocurrency because most the people are having their doubts in their mind why they aren't investing on bitcoin, because they think it is some kind of a scam which is why they are being hesitant in putting their money on bitcoin. Wherein if the central bank fully supports many people will be able to clear their doubts and hesitation in their mind because in a way they will sense it is something legal and accepted by our government.

If central bank release cryptocurrency  they will tax to the impossibility every single transaction. But in general we could speed the economy.

I think that might not be a good news.
Because central Banks have their own encryption currency, so they don't need a encryption currency market, so they also may be banned encryption currency trading, because it may be suspected of money laundering.

What determine the success of Amy market is the demands for such commodity, if the central bank introduce a new cryptocurrency into the system then it success will depend on the demands from the people. If the government make it as a compulsory crypto on the people then it may affect the present market if not bitcoin will still strike high because bitcoin and other popular cryptocurrencies have already gain they market value.

I think it differs considerably with the concept of blockchain. blockchain governs transparent finances without controlling government.
if there is a local bank that regulates in their possession it means to be responsible for all assets. if one day there are hackers who managed to rob all the bitcoin in the bank. I think that's a crutial problem for the bank.

Several countries are intended to create own criptocurrency. I think it is not bad for criptocurrency market. It proves the importance of criptocurrency :)

Cryptocurrency backed by government has never enjoyed support from their locals. Why? Because they tend to impose high taxes on it. Look at Russia's crypto rubble, as far as I can remember they are going to put 10-15% tax on it, logic dictates that you should not buy it, but stick to bitcoin or altcoins to get a better returns on your investment.

And no impact at all to the current market, I doubt that they will moves their funds around and shift to Central Bank coins. There are no money to be made there. Unless the government really impose everyone to go and buy the coins, I doubt that government back coins will really flourish as compare to bitcoin and the whole crypto for that matter.

Yes all the banks are interested in implying blockchain technology even if they consider bitcoin as their rival.Even some central banks have shown interest in issuing their own crypto coins.If they do so,it would be mostly bought and used by the already existing customers of banks and not by customers using crypto coins.We all know that such coins would be centralized unlike crypto coins which are decentralized.No one would be willing to come under the radar of taxing authorities and so it would not have any significant impact on the crypto market.

yeah! this is the best defenition i read.. thank you

I dont think it will do some huge damage to market price, i mean if they really launch ICO and barrely can sell their coin at that time, they would make any big different. cause you see almost everyday new coin born with billion of marketcap or something.

If they chime in, It will increase the cost of all the crypto. Big Profits for all the crypto traders :)

I don't think it's a good idea. The popularity of the cryptocurrency due to the fact that people totally do not trust the government and banks that are part of the existing financial system. What will be different cryptocurrency which would release banks from Fiat? Nothing. So I think that any impact on the market of public cryptocurrencies to be able to.

I dont think their interest stems from wanting their own crypto currency. Blockchain has so many applications. BTC is just the beginning of it. It successfully proved to many that the blockchain technology works and people are just beginning to understand all the possible application it has. For instance, blockchain could significantly boost their security. They'll basically be protected from data lost. Plus i dont think they'll be willing to shift to crypto because it's a threat to their existence. What makes them powerful is that they're centralized and they have all the control. Why would they give away that control?

Right. The basis of cryptocurrencies is decentralization and anonymity. If the bank releases its own currency, will it have total control over its blockchain?

Let's just say that this things is likely to happen, central bank's crypto will just be like some other crpytos in the market right now. We can never truly say that it will be the one who'll get total control of the block chain. Just like other cryptos, its success depends on how its campaign goes and the amount of investors they attract. But the budget of the said crypto will be its advantage among others because it has the fund of the central bank that will support them.

But of course Central Banks will do everything they can to retain the power within them , they would even go as far as getting themselves involved in bitcoin just like what you said they are currently interested in blockchain who knows what will they enter if the future asks of it they will and if ever banks release their own coins I think that will not be a good news because the banks could force citizens to patronize the coin because it is now the new currency of the country thus affecting all crypto currency in the stock market.

A lot of banking/financial  institutions are interested in blockchain. This shouldn't necessarily mean that they intend to launch their own form of crytpocurrencies. Even if they do, most people won't use it. At least most who understand the concept of crytpo. Can we expect to see a central bank starting an open source project in a Github repository anytime soon??

Banks maybe interested in other capabilities of blockchains like implementing smart-contracts. That too may only be implemented in the form of some products with customers. For example, giving you a bond over their blockchain that you can verify and see on a blockexplorer. Something of a novelty to their old, crazy-rich elites. But there is no chance in hell that they are going to start transacting over a transparent blockchain for everyone to see the movement of funds.

Making that movement transparent amongst the biggest banks is what bitcoin is meant to do in a plausible future.

Wow, this is a very good news, and it is true that it was a day or so. the bank has realized this fact so far and if it recognizes it then there can be no better than this so it is a good day to say that it very good and not only that our Bitcoin is so bad that it did not understand the bank anymore and the biggest thing is. I am very happy that cryptocurrency will be accepted completely from now on.

It doesn't make a difference as long as it is not decentralized. And I'm pretty sure that banks won't make a currency using blockchain and just let it operate just like Bitcoin. They would probably take such an step only to attract the people from cryptocurrencies towards their coins, but it won't work if the value or the movements of the coin are totally under their control. People use Bitcoin because it is independent, both by value and network.

Nobody is releasing anything now, slow down or read the thread. It's nothing more than a what if question.
I think that a central bank releasing its own cryptocurrency won't really change anything. It will get some attention from people who support centralization but the rest will remain in the world of decentralized cryptos. It will be a competitive market that's for sure but I doubt any side will be eliminated. They target different groups of people.

I am surprised because the central authorities are going to use blockchain like technologies which are purely based on the principle of decentralization and if they are using it then they are killing the core principle of the whole system. It will definitely help them to improve the performance and optimise the process but in that case, it won't be a true decentralisation and decentralisation at all in the whole system. Thus, I don't think that it will affect the real decentralized networks like in Bitcoin or other cryptocurrencies.

I think if that happen there is no effect on crypto currency market, but I don't think the central bank will release crypto currency because crypto currency is decentralization, it's difficult to central bank to control their crypto currency.

It would make the case for BTC 10 times more compelling. A currency directly controlled by the central bank would be an Orwellian nightmare. They'd have absolute control over every aspect of everything. The current setup can be influenced but it's a ragged mess of companies and routes. With their own crypto they could do anything with the press of their big red button.

That is only if their coin gained enough attention to be used by the majority. We have to remember that they can't make people switch from their legacy fiat accounts to cryptocurrency. Their only way would be to offer this as an option and since this is a novelty not many would decide to switch.
Young people who are already investing in decentralized currency would probably stay away from it or invest some money to differentiate. I just don't see everybody dumping cryptocurrencies and fiat money to get into a bank controlled centralized coin like bit-euro.

They will want to impose individuals to their cryptocurrency and base more of their transactions on their cryptocurrency  and place it with high taxes on investors,they can go to extra miles to achieve their goals.