Bitcoin Forum

If this happens, will the value of Bitcoin go down because the government will make it available for everyone for cheaper value? What are your thoughts on your government distributing digital currency?

I don't know about cryptocurrencies but Governments really create their own blockchain and it has nothing to do with the bitcoin's price. Blockchain Technologies add an extra layer of protection to the stored information and is useful in a lot of services, we have one bright example of it - land title registry. By using BC technologies here, we can feel secure that the stored information won't be edited/manipulated. That's all, this is the reason why Governments want to implement these technologies. Personally, I hugely doubt they'll create cryptocurrencies (1-2 country doesn't count) because we have already fiat and that works very well for them.

One day the US dollar will look like Bitcoin:
https://www.popularmechanics.com/technology/a32869513/us-government-research-crypto-dollar/

 :( :(

I'm not sure that would qualify as decentralised anymore! Blockchain's purpose is to reduce centralization.

However, if governments were to built their own blockchain I'd imagine this to have a positive impact on the crypto space, but whether the long-term success of this is attainable, for me at least is questionable.

Governments would not invest into something if they can't create value out of it, so I don't seem them providing crypto for cheaper than any other provider - this would be possible through their tokens- but then that would defeat the entire purpose of value generation.

These are a few of my thoughts on the subject atm. I'm sure you lot have similar if not completely different opinions.

What I think is common to most of us, is that this government blockchain won't happen anytime soon  :P

CBDC already has plans for government crypto but more like stablecoin. They will make it available for all but its price is stable, they are not meant for investment just like your fiat money today. The only difference is it's digital. But its also going to make crypto easy to acquire for a regular user I suppose since they are all digital and most likely could help the prices of BTC to go up.

I'm not really sure own blockchain and cryptocurrency from government  will affect the price of bitcoin. although there are several countries that already have their own digital currency, if there is no high demand, the growth of the ecosystem will not be able to compete with bitcoin

my government now has a plan to create its own digital currency
and for me thats good enough, but of course thus digital currency will be a kind of centralized digital currency my friend

in my country there is already a plan to create a digital currency as well, and I am not sure the digital currency of one country will regulate bitcoin, because bitcoin cannot be controlled at this time, there is cryptocurrency in one country only to make it easier to buy crypto assets.

The digitized currencies of the central banks of states will be ordinary stablecoins, that is, the same national currency of states, only in digital form and on blockchain technology. And stablecoins are not meant to be profitable. They work more as a means of payment and accumulation of value, like ordinary money of states.
Therefore, they will compete with cryptocurrency and, in particular, with bitcoin only as a means of payment.

Government have no power over bitcoin and as such, they can't control the price of bitcoin, they can buy bitcoin and decide to distribute it for free to their citizens but that won't drop the price of bitcoin or any other crypto currency they don't have power over,
Government can create their own crypto coin and this is the coin they can have power over, and they can control its price at will, but one thing certain is that people like myself will never invest or buy a government owned coin cus I personally like to be in control of my money.

nope, bitcoin price will going down if government creates own blockchain and cryptocurrency
even the price of bitcoin and other top altcoins, will growing hard mate, because if government create its own blockchain and cryptocurrency
this could be a free promotions for btc and top altcoins

I am sorry but your sentence doesn't make any sense. What exactly would be cheaper? If something replaces bitcoin it will be more valuable by definition. And there's a reason why bitcoin needs to have value. Mining incentives need to be high enough in order to keep the chain secure.

It has nothing to do with bitcoin price and market trend. Because basically bitcoin is one of the currency in crypto so if another currency will create, it is separated in bitcoin. Now, if the government will create blockchain and cryptocurrency, we should not worry because they don't have the abilities and capabilities to control and manipulate the crypto market and next question is, will the people support them to their project/currency?

Yes, they are going to create their own cryptos and it's called CBCD (Central Bank Digital Currency). However, it will not have any effect on bitcoin because simply is it not going to be tradeable on crypto exchange. CBCD are created by governments and banks for their own used, and we can say that it is analogous to fiat (paper money).

As for my thoughts, it will be good in the long run, if those CBCD will make our life much easier when transacting to banks (cost are lower, transactions are faster - deposits and withdrawals) so why not?

I am wondering if the government creates their own digital cryptocurrency (in this case maybe the CDBC), will it be used globally? If it is USD by the US government, it may make sense. But how if about other countries? So far, my country is also planning for it. But I don't think that it will influence the price of Bitcoin. Moreover, do they make CDBC a stable coin?
nay people may still prefer to use Bitcoin as a global transaction and also for investment. Bitcoin is not only considered as global currency but also as means of digital asset for trading and also investment (both short or long-term.).

I believe this cryptocurrency and blockchain fundamental is trust of the community, if the cryptorrency and blockchain is built by Government, isnt trust issue will be so high? So IMO its better for government to take adoption of any existence cryptocurrency rather than build their own.

That's also known as CBDC, they want to develop their own centralized currency and tend to replace Bitcoin currency.  As for advice, let them be and let them see what will happen to their creation after knowing that it's always better to HOLD and currency that has a decentralized nature.  This will not give an effect on Bitcoin, still the same as having progress and is based on the demand and supply.

That's right, how this makes sense to have the cheapest fee, can you use this CBDC in future trading?  It might their whole concern is all about the regulation of Bitcoin, since isn't yet regulated to them, it's hard to be accepted by most governments.

It will become an individual chain and there will be no relation to the bitcoin market. But just as the stimulus came to the people, it could also be one contributing factor to make the price of bitcoin higher.
Can you think of it that the money from the CBDC will also go into bitcoin? that's the logical reason if the price of bitcoin goes up because of them.

It will not make the value of bitcoin goes down but otherwise the CBDC that will be issued by the government will give a new gateway for the fresh money to come into the crypto industry. Some crypto developers already prepared for CBDC and these developers will be creating a gateway for crypto like bitcoin to be connected with CBDC.
It will never affect the price of crypto.

Most of the government are hostile to bitcoin anyway and they'll try different ways to prevent people from using bitcoin.
But just by creating and using a government owned blockchain and crypto won't affect bitcoin. Rather it would garnish more interest towards real cryptocurrencies like bitcoin.

 First off, government has centralized system. If they will be able to create their own cryptocurrency and blockchain, probably it was centralized and they will have control over it. And cryptocurrency is in decentralized form. This will conflict the real purpose associated with it's system.
 
 Although, on the other point of view. Creating their own blockchain to improve their system, to make their government more organized and prevent some corrupt officials  then there are still good side of creating their own blockchain.

If they are going to create one, it's going to be for their local use, and it will be centralized, governments want to control anything and everything within their boundaries, there will always attachment or hidden agenda behind it, so don't expect it to be like Bitcoin where traders from every nation will support it, I think China is creating one now.

there are already cheap coins but not backed by government but are trusted because they are quite old enough but the most point here is the anonimity .

 even those cheap coins didnt have a major effect in btc , how much more if government issue thier own coin .  another thing is most people here only invest to profit and that will only be achievable if a coin is not cheap  . most of the demand are still going to go for btc

Its assumed that these government cryptocurrencies will likely be paired to BTC or to any other cryptocurrency, its safe to say its going to be on exchanges as well much like the fiat we have today so its going to be easier for everyone to invest in cryptocurrency even if you are not working in front of a computer every day. Like if your job is a street vendor you will still have access to the cryptocurrencies because you have digital currency.

I looked up in Quora site and check this out.
https://www.quora.com/Which-countries-working-on-their-own-cryptocurrency
Notably Ecuador, Estonia, China and even Japan makes their own crypto currency. I can remember that one from Japan is J Coin.

If it happens? Well it already happened but look at where Bitcoin is right now, OP.
Even though it is cheaper per coin than on how much Bitcoin is, Bitcoin is still decentralized so that's that. Centralized coins isn't for everybody.

Governments will create CBDCs but they won't have the same value prospects as Bitcoin and other cryptos if the supply is infinite.

No, it's just like recreating USDT.
It will be a coin for the country and nothing else. Just digital coins.
It's government property or let's just say it is the people's tax money they will be using for the project which means one thing, it's not private.
It can't be like a stored value like Bitcoin. In essence, it's different.

Don't forget "control" they love that part. It's a must.