Bitcoin Forum

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

Type "CBDC" in the search bar (upper right side) and you'll see previous discussions about CBDC and it possible/potential effect on BTC or cryptocurrency adoption. Here's just one of them - Poll: coming CBDC help or hurt bitcoin? (https://bitcointalk.org/index.php?topic=5276565.0)

It is important to note that every comment in those threads are still personal opinions and you can agree/disagree with them. Have fun reading.

They need a faster way to transfer the money to their citizens is one of the biggest reason for developing their own digital currencies. Other nefarious possibility is for them to control their citizens although this is just a wild speculation and it is still far from true. The good thing about CBDC is that it alleviate inflation due to continuous print of fiat currency.

That won't hurt Bitcoin IMO, The Central Banks are centralized and will create a centralize coin which can only be useful for citizens of their respective country. For these countries to create their coins won't have no impact on Bitcoin which is decentralized coin, Maybe Bitcoin will be use for something else like a reserve coin for the world, nothing in my own opinion will be a threat to Bitcoin because it's decentralized.

Some things to consider:

• CBDCs specifications complement the need for control and easier access to alteration on money supply to stimulate the economy.

• Due to its existence within the digital realm (or whatever), it is easier to keep track of it and store it, making the government's job a lot easier for taxation and legal purposes.

• It's the new fad. They might just get into it before other people can and capitalize this 'innovation' for their popularity within their constituents for a re-election or something.

There are tons of reasons why they want to push through with CBDCs, and there are also countless of threads that tackle just that. These things above are just some of those I can think off the top of my head.

CBDCs are no threat to bitcoin.

What these banks see is that they are becoming late in the adoption of technology. And the development and rush that they do with CBDC is the need that they see to cope up with the latest technology that bitcoin has.

No need to worry from these cbdcs.

i don't know why you think they are "rushing" to build their own coin but i have seen a couple of them struggling to get the project to start for a while now. i believe i saw the first one over 3 years ago. so far we haven't had anyone even being close to finishing, some of them realized it is a pointless effort as people aren't going to go for it any more than they go for the banks already and they can't compete with the decentralized money aka bitcoin.

so they are just a threat to their own pocket since it costs a lot for them to create it.

As we know, currently the pandemic is in a state of danger in the world, of course, this is very influential for the economic conditions of each country, because many issues say that several countries have experienced recession due to a worsening economy.

Of course, with a digital currency it is hoped that it can reduce the economic burden of a weakening national currency, this is one of the right ways considering that digital currency is currently very popular in the world.

CBDC is much easier to use and track, especially in current circumbstances, but it's not even crypto, it's just digital currency. I wouldn't trust it anyway

Well, central banks around the globe are rushing to create their own digital currency. Perhaps because of the pandemic because nowadays people are getting cling to online transactions and fiat can also be a way to transmit the virus and government are doing their part to stop the spread of covid 19 in their country. It is hard to say that -- this digital currency that each government is trying to have will be a threat to bitcoin IMO it could also be a platform where these countries may soon be enlightened and consider adopting bitcoins as one of the promising currency where the value is much secure and could lessen the chances of getting manipulated by any institution for the interest-only of some.

CBDC is never a threat to bitcoin. Bitcoin is created for anonymity and decentralization while CBDC is totally controlled by the bank. Bitcoin offers people the chance to escape the reality that every is centralized by the government and banks. Therefore, even though central banks are rushing to publish their first digital currency, many people on this forum and other forums will continue to support bitcoin no matter what the situation is. People are free to choose what they want, either bitcoin or CBDC's digital currency

If you have a choice, will you choose bitcoin or will you sell your identity with a cheap price? Its your own making and make a choice which brings you happiness

Threat : No
They are just a new form of fiat and they shouldn't even be called digital cryptocurrencies, if they are backed by the government they won't be that volatile this tell me: how would they be different from normal fiat ?

They won't be private at the same time you should be assured that the government will keep on tracking your every move.

People won't use them if they do have a better option.

You should understand that the whole concept of crypto themselves is : decentralized system which can benefit the economy and the users alike but when banks wants to get involved in the same the corruption would do no good and at the end people will have much more problems even bigger than fiats.

They just don't want to be left behind now. The Chinese digital Yuan is already in operation, if they let it spawn it will likely be the first to dominate in the new market economy. Each CBDC has to produce its own now to make sure there will be a balance.

The cryptocurrency they are releasing though is very centralized as its meat for the citizen of the country.  Its not a threat to BTC but it's definitely a good sign that BTC and all other crypto can be accepted.

They probably liked the idea of  a track-able non-anonymous currency which they can confiscate it whenever they want from anybody and whatever amount they desire.

Since tether already has proven that it can work, they'll probably try it on people. Their biggest enemy is the old people who refuse to use complicated electronic devices.

Maybe it could mean they are seeing the future of cryptocurrency and they could think it is a strong competition to fiat and having it can make it look like already adopting the cryptocurrency. The banks are already playing along with digital currency, so it may not be difficult to adopt.

They are institutions that use fiat money: centralized traditional currencies.

They can't go from this to decentralized digital so the middle ground for them is a centralized digital currency that has some properties of crypto and still works like fiat just faster and more automated.

It's not a threat to Bitcoin but it might be a threat to XRP or Libra.

It's not and CBDC will bring a good impact for bitcoin as the institutional investors will be having a convenient way for them all to buy crypto. CBDC has become a solution for the development that is happening in financial technology in a centralized entity like a central bank.

The central bank didn't wanna leave behind the fast development that is happening in the crypto and blockchain. I saw that there are so many people who have started to adopt crypto. Crypto can be a threat to central the bank as it can make its service becomes obsolete. The bank in a hurry to follow the development in crypto especially to create its own digital currency.

I believe the OP is really new with crypto. Central Banks creating their own currencies are not a threat to bitcoin. I believe it is the opposite. Once these users find out the benefits of using crypto via the usage of CBDC, then I guess we will see adoption here. They can compare the pros and cons of bitcoin and CBDC, and choose what is best for their needs, in terms of control, privacy and other things.

I don't think it will be a big threat to bitcoin, on the contrary, it might help crypto in general as it might wake up the curiosity of the masses and peak at what bitcoin is. They are developing their won digital currencies for their own used only, meaning it won't be a public ledger.

The threat is that when central banks around the world look at bitcoin as a tool by criminals, hence the hard line stance. But it seems that they have accepted the fact, and what they are doing is just putting some regulatory framework. So I think this is good as it gets, we meet them in the middle ground.

Any source on the "rushing" part? Since honestly, they had the ability to develop it even a few years ago already imo, just that implementation would be the hard part since you know, not everyone has access to tech which is basically the medium when using digital currencies. And if that were the case, I'd guess their mindset was why purposely develop something only a select few could take advantage of right?

As for being a threat, why even? I mean, is the JP yen threatening the USD? Are Euros threatening USD? Not really no? It's not like there's some sort of competition between currencies, at least from what I know.

The central bank is developing digital currency it is not a threat to bitcoin the demand for bitcoin will increase further there will be government intervention and the government will manage the currency as it sees fit. Digital money can be centralized where control over money supply is central point or decentralized where money control comes from different sources due to the decentralization of bitcoin the demand will double which will lead to the introduction of every central bank including the government.

They understand that blockchain is pretty simple way to transafer the money and want to use all advantages of it but not ready to use existent cryptos. Thats why they want own digital fiat

Central Banks are joining the mainstream now. They are creating their own cryptocurrency for a good purpose not a threat to bitcoin. It can actually boost the crypto market's development if CBDC will develop their own cryptocurrency.

And Central Banks are looking for a way to cope up with the new advanced technology which will integrate the new money by using digital cash. This pandemic made them realize that cashless society were actually signifacant that is why they are into this new digital payment method and made a decision to make their own cryptocurrency.

It won't be a threat to Bitcoin. CBDCs are launched to eliminate cash from the circulation.

^ Definitely right. CBDC will still remain centralized though it is digital which might be similar to bitcoins and other cryptocurrencies but the concept or the idea of decentralizing is not the same. Central banks and governments around the globe are rushing to create their own digital currency for reasons we can never know it until it is already implemented. Probably one of the reason could be this pandemic where fiat money can be a way to transmit the virus which is somehow not far from the reality it can help us even the government to avoid the continuous spread of covid 19. However, we cannot conclude that CBDC is a threat to bitcoin for the cryptocurrency is pretty different from it but probably they have this idea that creating CBDC can be used to regain the trust of people like us who believe that decentralized currency like bitcoin is better than fiat.

If ever each and every country could have already their respective digital currency for sure this effectiveness or useful of each digital currency were only applicable to their respective countries too. These development of currencies will lessen the used of fiat in the country and also will lessen the alloted budget for mandatory monetary changing each year (of course the materials that will needed to imprint those coins and paper money) so thus it would never affect the bitcoin worth in the market.

I doubt it is to eliminate cash but to be an alternative to provide more "convenience" to the users. Using cryptos are another thing. Cryptocurrencies are believed to be more advantageous for being decentralized but if it is security concerns, CBDCs are having advantages as well due to the supoort of the government itself.
That's not how it works. CBDCs are existing for years already but it does not promote use of Bitcoin. It is also not a threat.

The support of the government I think is the threat from CBDC because this is going to be a tool for the government to monitor our transactions. Because they can track every single transaction made with our wallets, this will be another way for governments to see our transactions and the money we kept. On the other hand, its easy to buy cryptocurrency like BTC when there is digital fiat created by CBDC.

It is definitely a threat to bitcoin because if the banks have their own digital currencies then a lot of users are going to switch to their currencies because of better trust between them and their banks. Bitcoin doesn't seem to have any centralised bank source so it in the most secure form of digital currency. If my banks gives me the chance to sue its digital currency and i also use it for matters of cash then I will shove my banks digital currency over bitcoin because I will be sure that I have better security over my currency. A lot of people will eventually. There are some things that come up adn then people relaise that hey needed the things all along, and this is on of them.