Bitcoin Forum

"At the moment, virtual currencies such as bitcoin are no longer a threat to the existing order of credit and central banks," said Christine Lagarde, director general of the International Monetary Fund. .

Why? Because they are too precarious, too risky, too energy-consuming, because the underlying technology is not capable of changing and because many virtual currency is not transparent to law enforcement, a virtual currency has been hackers steal ".

What do you think?

There are a lot of things the government officials say. But this might not be completely false as considering only bitcoin, there are a lot of drawbacks currently with it including high transaction fee and late transactions too. But there are comparably many other new coins and cryptos which can, in a way be threat to the central banks. As long as there are holders supporting those cryptos.
Cryptos won't be a threat to the central banks if they somehow find a way to back off the cryptocurrencies big holders which will lead to fall of that particular crypto, in that case yes that statement is partially correct.
But crytpos to some extent are the threat to central banks.

bitcoin will not destroy fiat just due to 'going mainstream' (consumer popularity).

after all the euro is popular to hundreds of millions of people, yet it wont destroy the dollar.
after all a iphone is popular to hundreds of millions of people, yet it wont destroy the dollar.
after all a pepsi is popular to hundreds of millions of people, yet it wont destroy the dollar.

the reason is simple.

it has nothing to do with popularity or what people hold
its to do with laws.

7 billion people have held a bottle of pepsi atleast once in their life. this does not mean pepsi is going to take down fiat.
other legal tenders are as i just said legal tenders. but they wont tak down other countries currency, just by people using it.

laws need to change. which in most countries are:
minimum wage laws: - measured in a specific currency
court fee's and fines laws: - measured in a specific currency
tax laws:- measured in a specific currency

in short bitcoin will never become a legal tender of america and take down the dollar unless atleast those 3 laws above change the words "dollar" to then say "bitcoin".. no matter how popular bitcoin becomes people will still have to pay taxes and pay fines in dollars

.
also banks dont care about who holds bitcoin. bitcoin does not burn fiat. when someone buys bitcoin. the fiat does not disappear. it just moves from the buyer to the seller.. the same way buying an iphone, or a bottle of pepsi does.
so to banks bitcoin is no different than an iphone purchase and does not affect their monetary policy at all

There is a possibility that Bitcoin will replace credit. As to when, I do not know but I am quite certain that day will come. It is too early in a day to comment about this since I believe there has to be gigantic changes in Bitcoin before it can even be considered to be a better replacement to credit. And yes, one of which is the delayed transactions that have seriously affected Bitcoin's standing in the financial market. How can something too valuable TODAY be so ineffectual when it comes to processing transactions? It should at least be at par with the demands of time, quick and easy, given its high transactions fees. In fact, if it continues to be this lagging, it may even be overtaken by other better performing cryptos. If we are to speak only about this, I do not think central banks across borders have a direct threat in Bitcoin.

"At the moment, virtual currencies such as bitcoin are no longer a threat to the existing order of credit and central banks,"

So they used to be but aren't anymore? What has changed? I think she's bullshitting us making it sound like everything is fine, but it isn't. Just open any cryptocurrency forum or google it and you'll see how many banks are refusing to accept transfers that come from cryptocurrency exchanges to your private accounts. I've seen virtual credit card companies denying their services just because the client was getting too much money from sources they don't consider legitimate. I've read here on the forum that this is a common thing among Australian banksters for instance. If it's not a threat laissez-faire!

I will concede the fact that she is correct on the basis that Bitcoin won't replace credit because I think both systems will exist together it won't be either us or them. However the part that I quoted couldn't be more wrong, Bitcoin is a technology and Bitcoin is always subject to upgrade as it is mainly technical. How do people not see this and why do people not understand the thing they are critiquing? Mind baffling stuff! :D

with what i have said above.
blockchain currencies are NOT a threat to banking/credit companies.. but..
banking credit companies could adopt their own blockchain currency so that they can save money on:
auditors
IT staff
security staff
compliance officers
etc

because most of those tasks become automated due to how the blockchain self checks/regulates.
this is not to say it will replace credit/banking.. it will just change behind the scenes data storage and security method

Yes.He's 100% absolutely right.Its because banks survive mainly by lending loans for interests and only on transaction fee.Crypto coins doesn't have a central authority to organize and provide loans.So banks are completely out of threat in this concern.

I don't think they have ever been a threath to fiat and to banking system. Bitcoin and cryptocurrencies have totaly different platforme and they don't tend to replace fiat currencies. Some users would like that but in real life this is not possible.
There is realy no need to give attention to such statements.

I don’t think cryptocurrencies will completely replace credit cards and banks, but I think they will make an impact. Using a credit card means you are borrowing money from a third party with the promise of paying it back. Paying with Bitcoin is not borrowing money, so it’s a little different. If someone wants just the convenience of not carrying cash, then cryptocurrencies can do this in lieu of credit cards, but if someone wants to buy on credit, cryptocurrencies don’t really replace that feature.

Andreas Antonopoulos has a really nice explanation on why this isn't really that bad. The video can be found here: https://www.youtube.com/watch?v=2T0OUIW89II 

Using the credit card in the US is important because of the credit record which enables people to get a loan to buy a house later on, this is why people are starting to use a credit card as soon as possible (when they have their first job), to build a good credit record. They use their credit cards even if they have the money on their savings account. If people were able to buy a house without credit, they won't bother with credit cards at all, they would use debit cards or cash.
As long as paying with cryptos don't help your credit history, there's no use of using them for daily purpose. Banks won't accept bitcoin and the alts directly now and in the future so as long as people are forced to use credit cards, they cannot fully change to cryptos, unfortunately.

in my opinion, the statement of the general director of the International Monetary Fund is true. .
it is related to the current state of the bitcoin which is so large that it is risky.
however, this technology is a good innovation, so I think we should be able to support and develop it to be really useful for all of us

I think it is not possible because Bitcoin itself is a virtual currency, its own credit is difficult to upgrade, let alone replace credit.

I'm skeptical about replacing the credit system with bitcoin, at least not for a moment. Credit card system is the product of free economy, has achieved great success, with a strong network effect.

In my opinion, bitcoin was once a threat to fiat and banking systems. Bitcoin and cryptocurrencies have different platforms and they do not tend to change the fiat currency. And will likely replace it because bitcoin can ..

Given the speed with which banks and regulators react to the cryptocurrency, as long as there is no regulatory framework for accept bitcoin, it is unlikely that we will see such in the coming days. But there are already on the Internet sites that give loans in bitcoins, an example of Loanbase, Bitlendingclub.

Right now bitcoin is used mainly by almost everyone just as an investment and a way to make more money. I dont think more than 1% of bitcoin holders actually have bitcoin to use it to buy things or to pay bills or any other things like that because there arent so mamy companies that accept that. You cant buy food/water with bitcoin, you cant buy clothes,you cant buy bus/train tickets and the lost goes on. Thats why bitcoin cant really replace banks, because it cant be used to pay almost anything with it especially the important things. As someone said in other post cryptocurrencies can replace banks but not bitcoin. Another coin has to be created that has more advantages than bitcoin like low fees and fast transactions(almost instantly if possible)