Bitcoin Forum

What do you think would have happened if the Israeli central bank took the pro digital currency stance by approving a national crypto for the country? I think that despite its appeal, most countries are behaving like the institutional investors in wanting to know who dives in first. Do you think that more countries are going to turn down national crypto because from what I heard, quite a number are considering it?
 https://cryptoinfowatch.com/bank-of-israel-maintaining-status-quo-with-respect-to-central-bank-issued-digital-currencies/

National cryptos are the inevitable future, mark my word! If you think that bitcoin or other cryptos will take over the control of future economy, you are living in a fool's paradise!

The future economy will certainly be evolved around the virtual currencies, but they will be controlled and regulated by the governments. What Israel has done, is going to be followed by the majority of the other countries soon.

However, I don't see a risk factor just as now due to this decision of Israeli Central Bank. Because the scale and reach of National cryptos will be strictly controlled and it is just as good as the respective fiat without any power to impact the crypto market. But it may take a turn in future if more countries joins the same league. It is too early to comment on that!

If and when national crypto becomes a common phenomenon, what I'm yet to understand is its relevance and whether it will be available on exchanges too. I personally do not see the relevance when we already have 1000 coins in the market. Unless these countries want to keep their citizens off Bitcoin and altcoins. The excitement of using crypto is in its volatility and these national crypto will be no match since they'll mainly be stable coins.

I recon some people are confused with the word CRYPTO and its use.
A government issued crypto will be controlled by that country, it will
be centralised.

So if the Israeli government wants to adopt crypto it will have no
effect on Bitcoin because it will be a centralised crypto.

Based on this article, I understand that the statement not to run the national digital currency is a temporary measure. Here you can see that they want to launch their own currency, but they are waiting for the right moment, and in the future Israel may very well create a digital shekel:  “The team does not recommend that the Bank of Israel issue digital currency in the near future. It is necessary to continue examining the field and to follow developments around the world before there are proper grounds for a decision to recommend issuing digital currency.”

Cryptos by design are decentralized, meaning not under the control of one person or group. A national crypto currencies is a complete reverse of the crypto makeup so it won't work. It is not surprising that Israeli Central Bank took the decision the way they did.

Not everything is as bad as it seems in fact, and in order to understand this it is enough to look at this part of the article: "The report acknowledged that these risks are not yet understood and that more studies will be carried out, especially as more countries move to adopt national digital currencies."
I believe that in the near future, all the same, all countries will begin to create their own national digital currencies, just for this you need some time.

What will happen to ordinary crypto like \btc and eth when all countries start launching their own digital currencies?

It really depends on the governing body in every country. The decision will be placed in a hearing and if majority of the votes are on pro then they'd consider it. As far as I know, those countries banning crypto have less knowledge about the technology. They only focus on the negative side of it. If only they'll consider the benefits that it can bring to industries then considering it will be their priority.

Hopefully the citizens of those countries would realize the difference between government controlled "private" Blockchain

based coins and "public" coins like Bitcoin and Ethereum. People already see how Banks and governments are destroying

Fiat currencies and I hope they try to avoid that in the future. The problem is, most of these governments are going to

force people to use their coin.  >:(

We have already seen a lot of countries thinking in the direction of owning a national cryptocurrency. Venezuela already have one. I see Malta also having its own within a short period of time considering the country and government's support for cryptocurrency events. With all this, there is no doubt that more countries including Israel may create its own so as to keep up the competition. I am sure no country would want to be left out.

Israel has good relations with the USA, and crypto growth in the USA is very good, but the volume and crypto trading activities in the USA are lower than China.

will Israel cooperate with the USA to regain and to control again the crypto trade?

the crypto industry requires a long process, I think Israel does not have good potential to create positive values in the crypto world.

Knowing that there are governments that are already trying to research about the feasibility of state-issued cryptocurrencies, the shift towards such would be inevitable, and I don't think that in itself is harmful for bitcoin and the cryptoworld. People will still know the difference between a centralized and decentralized cryptocurrency anyway so it won't matter, they can still choose whatever crypto they'd like to invest and put their money on and what to use to spend for everyday life.

Once a country proves that adopting crypto into their financial system is viable and feasible, others would follow suit. We're headed for the digitization of all things anyway so money isn't an exception.

So what if they create their own crypto currency? Does it really matter for those who are decentralized?

This kind of things will only rotate on their own country and I dont think it will get out of there since they will be the one regulating it.
Perhaps they will make some rules that you should be a citizen of their country to own their crypto coin. Yeah that is the meaning of regulating it. Control.

Bitcoin is way far from that. If they dont like adapting bitcoin then it wont be a problem. Somehow there are still people in their country that will decide to stay with the old one and decentralized.

I think that the country will not abandon the national currencies, but the cryptocurrency will be developed and used on a par with the national currencies. People trust paper money and it will take a long time for them to start trusting electronic money !