Bitcoin Forum

The U.S. Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy conducted a hearing on “Winning the Economic Competition” between China and the U.S. on Wednesday.
Once again, the idea of a Federal Reserve-administered central bank digital currency reared its head.

The idea is not just academic, said Senator Tom Cotton (R-Ark.), who chairs the subcommittee. During a previous hearing, Cotton also advocated for modernizing the dollar, saying it would need to be better than bitcoin.

https://www.coindesk.com/senate-hearing-sees-digital-dollar-as-a-tool-for-economic-supremacy

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So, they already believe that bitcoin is better than the dollar.  ;D

It looks like the US has begun to recover and fear that countries like China and Russia will overtake it in the "financial arms" race. But what the digital dollar really will be, and who will need it.

What do you think?

I dont think they compare Bitcoin to USD. They just want the digital dollar different then Bitcoin. It will be more like USDT. A simple stable coin that will run on I dont know what. Maybe will run on top of Bitcoin. they will figure it out.  It will not be any danger to Bitcoin or any other decentralised cryptocurrency.  

I mean it’s no secret that the US government and their politicans are going to like the US dollar more. Kinda makes sense ya know given their position in wanting to control the currency of their economy.

Can’t control monetary policy if you’re using Bitcoin. Not saying that is a bad thing or a good thing, but still just something to take note of.

Digital Dollar will be a goal of lawmakers and regulators in the coming years due to the fact that China is close to releasing their own digital yuan. Increased control and the government is now happy they can now monitor more.

The U.S. must be closely monitoring China's own CBDC development, and they are going to respond with the digital dollar; I don't think any of this countries want their CBDC to be like bitcoin or are creating it because of the bitcoin. This imo is purely political and a way of improving their economy. Since the digital dollar/yuan is not decentralized, so it's not like it's an alternative to the bitcoin.

What I'm foreseeing is that the competition is going to be between the CBDC's of the different countries about to launch them and not bitcoin, it'll be interesting to see how they are going to use it, and it's goals.

+1 to all of that. Doesn’t make sense for the US government to use something that they have no control over. Not sure on why some people think Bitcoin doing this is possible.

This simply is a political move to stop a geopolitical adversary from getting a leg up on the US. Nothing more and nothing less.

We’re in a cute little cold war with China, though this one is a bit more interesting as our economies are interwoven.

I agree. It is obvious that all this is primarily political steps and statements. We do not really know at what stage the development of digital currencies is now in China and the United States. But I am sure that we will hear a great many more loud statements from both countries. What happens at the output is a big question. But one thing is for sure, the United States is not going to let China take over the leadership in this direction.

I'd like to look at the implementation. Indeed, in fact, China and the United States are popularizing the blockchain due to the noise around their digital currencies.

Considering that it have different characteristics from bitcoin, it cannot be better or worse in any way, since they will have the centralized properties of stablecoins.

They will always say that they need to create something better than bitcoin in order to say that bitcoin is not very strong.
The plan is to create again something centralized that is going to be controlled by the government.
With this specifications, everything they are going to think of is going to be described better that the current cryptos.

With the creation of something better than bitcoin, they were already late, bitcoin was created. Bitcoin is decentralized and this is one of the main reasons why it is better than the dollar.
What the US and CHINA want to create are nothing more than analogs of their national currencies, the same centralized, only digital.
This means that with a number of the same problems and shortcomings as the originals.

they will never do that, they will, ofc create their own crypto dollar to protect themselves from fraudsters like george floyd

Of course it won't have Proof of Work. Just a means to have more control over the money supply.

they the government can't they just take over USDT? its perfectly sitting on top of the rank and already well known which the previous players in crypto had been using already even before the chinese had dominate the crypto.  its pegged to USD and can work as its digital fiat. I think they can easily dominate including the crypto market with USDT than making it hard for them by creating a new one to compete the digital yuan with new one that is unknown.

proof of work is the spending

Definitely it will not compete with bitcoin as this digital dollar is a centralized one and controlled by the government. As others have said, it is like USDT. However, USDT is not owned by the government so they need to create one that is totally controlled by the government. I believe with the launch of these digital coins owned by the government, there will be an increase in crypto adoption. And once those users realized the advantages of bitcoin over this centralized coin, they can just switch easily to any crypto as they are already equip with knowledge on how to use it.

I don't know about that...
Most people will just use the most convenient system. Once the digital dollar is in place, the state will only have to declare that every shop will be obligated to accept this new currency for mass adoption. Once "normal" people adopted a digital currency, they will see no interest in using another one. So in my opinion, bitcoin will remain marginal and the only thing that could change this is the FED mass printing money and people seeing that their saving are quickly losing value.

If you think about it, at the hearing, the topic of the digital dollar was only partially touched upon. Such hearings can go on for years and at everyone someone will say "We will make the best digital dollar in the world, it will be better than any cryptocurrency." But in the end, things won't get off the ground, because they don't know how to do it. They have no margin for error, because other competing countries will immediately take advantage of this. It all looks like dust in my eyes to me.

Since they have money they can still pay experts to do it in their place, it won't be (and feel) organic or legitimate, but it will work.

Obviously, they will hire the best experts, financiers, economists, blockchain developers and so on. But they won't be able to reinvent the bicycle. So why spend money on developing something new, if there are ready-made options, such as Libra Zuckerberg. I think they will appropriate it to themselves, or at least copy it, having previously blocked the air for Zuckerberg.

They don't need something new, they just need to have the best implementation (in this case be the most convenient for most americans)

I agree. Convenient digital currency, fast, low fees, safe, clear and simple. Next level digital fiat money. Libra.  :)
That's what I'm talking about. This has already been invented by Zuckerberg, all that remains is to take it and start using it.

They probably will, but I would not trust it like I trust bitcoin. All the advantages you mention do not compensate for the fact that they have full control over the currency (like the FED, they can decide to print money even more easily than now...)

By default, a decentralized currency (doesn't necessarily have to be a cryptocurrency) which is protected against inflation is going to be better when compared to centralized currencies which are prone to inflation. So I am not surprised by their admission of this fact. The federal reserve continues to print banknotes like crazy, and this further weakens the value of the United States Dollar. Gold is now trading at >$1,900 per oz, and it just shows how weak the USD has become in recent times.

And almost all the other fiat currencies in the world are influenced by the value and purchasing power of the USD. So when USD goes down, they also goes down. It is similar to the case of altcoins in the cryptocurrency market.

It is normal for any government (not only U.S government ) to say that the digital dollar is better than bitcoin, the digital dollar is central and the government can control it completely and this is what any government wants, unlike the decentralized bitcoin that no one can control or penetrate its privacy, so we will soon hear about the adoption Governments for digital dollars and other digital currencies, but we will never hear of their acceptance of bitcoin.

When they say they want the dollar to become better than bitcoin, it shows that they know how good the dollar is, they know some benefits of using it so they want the dollar to take over this kind of currency. I am thinking, it digital dollar could be possible in the U.S? I think it would only be money online which is something like cryptocurrency but with a stable price. Is it really useful?

Better for you? Maybe.

Better for the government who wants to control the monetary supply of the country to have a finer control over their economy? No.

That's why the government got rid one of the gold standard (at least this was one of the reasons) If they can't control it based on their own whims, it's not something that they want to get involved in.

FIAT is better for every government. Crypto is yet to be determined on if it's 'good' for the citizens. I love Crypto as much as anyone else on here, though I don't know if we're going to see amazing adoption as we all once thought there was going to be.

It’s good to know that U.S. Senate got hearing related to digital currency. I think it’s not the first time that they tackle about digital currency. They are aware that other countries also preparing for the adoption of cryptocurrency in their respective area. I think U.S. is not new to this, we knew that they will not lose in the race to this technology and they are very open to the new trend currency. IF they will create a digital currency that will beat the domination of BTC seems impossible. BTC is being dominating this field of decentralization network.