Bitcoin Forum

The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy.  The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.

The problem is that your ordinary citizens do not know the difference between the two. If CBDC is "government supported," then it must be legal, right? Educating the public in some way about actual value support seems to be the only way to ensure that CBDC has nowhere to go.

I am not sure what exact data will the governments be able to obtain that they can't get to without issuing a coin? I mean, they already have our data from multiple sources so it's not like we can hide that much. The only thing they can obtain is how much someone invested, but I don't know of what use that would be.

I don't know about that part because I feel like if CBDC becomes a thing in a country, it becomes a catalyst for governments to ban other cryptocurrencies because they think that cryptocurrencies threaten their project so they try to eliminate competition like what China did.

Serves many purposes for developing CBDC, because with it everyone's financial activity will be seen by the government, and if they see you trading cryptocurrencies they could shut your CBDC account for that reason by accusing your funded terrorism which is what they have been saying since. It's all the naysayers are saying actually, CBDC is big bro surveillance.

China is also up to hold surveillance to the people of the world not just in China. In fact it's one of the reasons why US is mad at them. They collect data but the US can't collect data from them because they do have their own version of google and facebook.

I do not believe your claim, be prepared for war on crypto coins soon because CBDC will lack interest since they are stable coins, no one will want to use them much like crypto coins so the real hatred will start, CBDC might actually be the real reason why China ban all crypto miners in that country don't you think?

Indeed, the stablecoins of the central banks of states will provide an opportunity to appreciate the benefits of a decentralized cryptocurrency. People will compare the capabilities and convenience of each payment system and choose which one to use. However, this will be a long process and will take a long time. States and their governments can also try to lessen the impact of cryptocurrency through tighter regulation. However, the cryptocurrency needs to go through this, from this it can only become stronger.

Central bank wont't help bitcoin in any use case mate, whether its gonna be cash model, digital model or mixed model whatsoever. When there comes the the tracking of fund usage or wealth management, then users gonna run from them like hell. Nobody wants to be on that path when it comes to the money!
It's always good to keep them both separated; the central money and the decentralised one. Though central will have the money in the digital form, then also people will choose BTC in the future and thats the whole point when it was made in the first place.  :P

At the end, central is completely opposite concept and hence it won't help improvise the usage of bitcoin, it can't just happen. They are opposition party lets not forget this!

This is an otherwise thought in contrast to your topics title.

Some people think Bitcoin adoption could increase if CBDC is introduced into individual countries because some people can know about cryptocurrencies  through CBDC and result to them knowing about Bitcoin. But I still think otherwise but not certain which would be which because I believe some people are not literate or not literate enough to know how to make use of cryptocurrencies. But this is not related to bitcoin scalability, and know that Bitcoin can not go priceless, it will surprise you when all-time-high will be attained again.

It shouldn't matter as long as we understand the difference. In any case, people won't be in a position to reject CBDCs or do anything about it. The governments will straight up just make everything online and force you to use those wallets. What everyone can do though is to lay more stress in personally being invested into bitcoin, as well as actual commodities, to whatever extend feasible.

The OP is just talking about the fact that bitcoin has already caught the fiat overlords unaware. With institutional interest by some of the biggest private corporations, it is clear that even they don't like paying negative interest rates. For the corporates, bitcoin may be the only bargaining chip against monetary mismanagement. For the people, when the government transitions whole countries to CBDCs, bitcoin will naturally become the currency of the free internet.

Sooner or later news will start flowing about money automatically seized from criminals' wallets, then about money seized from correct citizens by various mistakes of the govt or automation... and while some will say "I have nothing to hide", others will understand the difference.

And there's something more: Bitcoin's scarcity will keep making it a good investment, not only a censorship free coin.

If the government creating the CBDC by following the path led by Bitcoin, I don't see any way CBDC will cause inflation.
It will be nice if the CBDC will improve the use cases along with the value of Bitcoin but I think it is too early to make any conclusion about it because the government is never in support of Bitcoin decentralization in the first place.
Let's just hope other countries that will create CBDC won't follow the footstep of the Chinese government to hype their CBDC.

Possibly! Because with the implementation of Central bank controlled digital currencies, the finances of every citizen will become an open book to the government. Every single transaction can and will be monitored. So the usage of privacy cryptocurrencies will increase. Not necessarily bitcoin but it could be any currency where people can effectively escape the government surveillance. I presume that cryptos like Monero will become more popular than what it is today. But that will bestow a positive impact on the crypto market which could trigger a bull run due to increased adoption. But we have a long way to go before that!

It is possible that the state's way of getting rid of crypto will be increasingly visible, so we can't be calm because the government issues digital money, as if it will initially support it and then it will backfire. Either the policy will be a strong driver of economic growth, or on the contrary, if the country's openness to its deals attracts crypto as opposed to digital money, which only transfers data.

I dont think that CBDC and crypto can be together in supporting. Because when we talk about the government, they have their own egoist in regulatory. Crypto is always considered as an obstacle for them, because crypto is the real different currency that desentralized and cant be monitored by the government. This is why I said crypto and CBDC cant support each other.

CBDC is the responsibility of the central bank. The government will determine which goods and services are legal. It will be programmed to enable users to purchase from a list of legal goods and services, but it will also be programmed to deny users the purchase of illegal goods and services. So I posted this post and hope it can affect some people who have misunderstandings.

Yes, precisely this. If governments want people to use the the CBDC, then decentralized crypto is a competitor and a threat to it.  It's therefore more likely to be outlawed than to "prove the case for bitcoin" and if you thin that people are going to continue to just use it anyway when it's outlawed, just look at how hard that argument is failing in China.  Being outlawed won't completely eliminate it, but it's certainly not going to be a robust ecosystem or a safe place to put your assets.

Most people are not used to think on their own, they are sheep and they believe whatever they are told and this means that the majority are going to still look at bitcoin with suspicious eyes and are going to prefer whatever has the stamp of approval of the governments, the only way this is going to change rapidly and massively is if there is an economic crisis so acute that people do not have any option left but to challenge their own beliefs, and even if we know it is coming no one really knows when it is going to happen.

I've never thought of this, since there will be use case for most CBDCs that will be made. I've forgotten that they're still bind to the value of fiat which is still lessening in buying power due to the inflation. And in that manner, there's no difference of it in fiat as people will still find a way in defeating inflation and one of the solution and resort that they'll find is through bitcoin. That's a good thinking that it's gonna be making bitcoin at still the same rate of adoption and demand whether there will be CBDCs or none.

The first big assumption is that CBDCs will succeed and become competitive with banks. I wouldn't be so sure about that. You are also assuming that people will be unhappy with privacy invasion and giving more power to government, but recent history shows that people generally don't care about it. When Bitcoin was released, a lot of people expected that people quickly flock to it, now that they have an option to use money without government control, but now 12 years after, the adoption is still very low.

you are trying too hard in my opinion. central banks and their digital centralized currencies will never do anything to help bitcoin. in fact it may even be the exact opposite meaning banks may start putting restrictions when people want to dump their bank money to get bitcoin.

CBDC is basically just fiat in a blockchain format and that is why there is not really that much attention towards it, and that is why governments haven't created a proper one just yet because it was never seen as something that will be loved by anyone, so why create something that will not be liked by anyone?

This is why I honestly believe that there is a good chance we could probably not see any CBDC grow big, or even happen for a long time, governments realize that people do not like them it is not a secret, every single government realizes that they are hated by many people, even if they are elected because some people voted for them, on top of all the people who didn't vote for them, there are also some who disliked them but still voted because they hated the other guy more.

You think Biden is loved by everyone who voted for him? Not really, many people who voted for Biden dislikes him, but they hated Trump so much that they would be willing to vote for Devil himself over trump hence why they voted for Biden. So governments realize this hatred and they know CBDC will not be used publicly too much and hence why they are not putting too much thinking on it just yet.

As sad as it sounds people do not care about their privacy and if anything they are willing to give it away for the latest app that allows them to upload every single aspect of their lives to the Internet, quite honestly I do not know how exactly things got to this point, but it does not matter this is the way things are and if given the choice of a currency that gives them privacy and the possibility to get great profits and another one that takes away all their privacy and makes them to lose money people will choose the latter before the former even if this does not make a lot of sense.

Bitcoin is becoming more and more popular. The digital transformation of payment systems and the market's demand for stablecoins are prompting countries to explore central bank digital currencies. 
If digital currencies gain attention, they may actually increase the value of Bitcoin and other digital currencies. Moreover, with the implementation of digital currencies controlled by the central bank, cryptocurrencies will be known to more people and their usage rate will continue to increase, which will have a positive impact on the crypto market.

Bitcoin frees people from monetary policy,but Bitcoin also puts the people in a volatile free market,where the risk of them losing their funds is pretty big.The market isn't perfect,that's why we need efficient governments.
How the hell can CBDCs help Bitcoin increase scalability and liquidity?Can you elaborate more?
Do you mean that CBDCs will turn more people towards Bitcoin and make BTC more popular and in demand?
Increased demand and popularity have nothing to do with the scalability of Bitcoin.
I get your point,but I have to disagree with your theory.
Nobody knows whether or not CBDCs will be better than the current financial system.They might be worse than fiat money.

When the CBDC that is regulated by the government is no different from fiat, which continues to be haunted by monetary policies that burden the people, Crypto, especially BTC, will be considered more valuable in the eyes of the public.  Isn't everyone now fed up with the centralized market while we already know crypto apart from it all.  Now what matters is whether you trust the government or the market more?  If you believe the market can bring a better economy, then crypto will be sexier than CBDC

Also, if you interact with CBDC in any way, the CBDC issuer can actually develop a full financial online profile of yours. They might be developing very sophisticated interfaces for CBDCs and cryptocurrencies such that they ultimately get to know exactly who you are and what you are up to. The herds will fall for it I guess.

Decentralized currencies will surely be considered best, but you know how people can be very foolish, why will people not trading leaving funds on centralized exchanges, so I will not go more deeper into this until many CBDCs have been created. But, the wise ones in the public will go for decentralized currencies like Bitcoin because CBDC are just like Fiat just like you implied, pegged with Fiat which is subjected to central devaluating control which is done by the government.

What I will just have to comment about this is that we can not do without the two, decentralized currencies are deflationary, appropriative and act as speculative asset and store of value, for anyone that wants to make passive income, he/she can buy Bitcoin. Fiat and CBDC will remain, because if there is not inferior, there will be no superior. I like how I use Bitcoin as store of value while Fiat for spending.

The central bank's digital currency will improve the use of bitcoin increase the demand for cryptocurrencies and introduce bitcoin to people everywhere such as fiat currency with the crypto market comes the development of the financial sector for the benefit of digital currency. There has been a visible improvement in the of the bank. Entrepreneurs have also decentralized the financial sector, the most vivid example of which is bitcoin People will transact directly with the central bank.

I do think this is not only important right now but also a necessity. Are the end of the day there are going to be technological advancements and those advancements might need a slight push and I do believe that cryptocurrencies are the ones doing that right now. Are the end of the day the only way it would work is if the government decides to integrate themselves with it.
-Also at the time of an economic crisis or collapse people can very easily use these to get out of bad situations.
The central bank might try and fight back as much as they want but I do think now they all understand that they do need crypto friendly economy.

Because CBDC is indeed controlled by the government, it is impossible for us to make something more valuable, because its value depends on the exchange rate depending on the fiat of each country. The price will be relatively stable. Of course crypto can already be an option in improving our economy in terms of exchange.

The worst thing about us is to be misleading ourselves, Fiat is not stable, I do not know why even cryptocurrencies pegged with Fiat should be called stable coins. As of today, there is no stable coin. Fiats are totally subjected to central control which are the governments, the governments do no two things to Fiat than to depreciate the price as always, this is even worse in developing and underdeveloped countries.

I know that it is not really "that" different from fiat but it is a bit different, in the sense that the tech behind it is a bit different and that matters a lot. This is basically a way to tell the world that governments are making their own crypto now, I know it may not be exactly like a crypto currency but it is a good marketing plot for us that we can use to improve crypto.

Plus in the situation, where CDBC actually gets listed on places like Binance and all, that would mean that exchanging will be easier. Why in the world anyone would ever want to hold USDT? It is just a fiat pegged stablecurrency that is 100% useless if you could actually hold dollars like that, it makes zero sense to own USDT when you can own USD, so if the American government creates their own stablecoin, that means we already have a huge demand for it proven by USDT in these past few years.

It will create another fomo on its launch as people their may confuse it that central banks are now into bitcoin and they will all rush into it as usual with free money.
I must confess, banks are actually trying as they are working every day, it helps me too but as long bitcoin was never in control of any one in government power, they will never accept bitcoin been recognized.
Banks is an old system that government is still trying to make everlasting freedom of money.

I think the only thing that will truly incentivize institutions to better manage things, is people making an effort to be more informed and better educated. To cite an example of this.

Americans always complain about healthcare and how bad it is. Very few americans can explain exactly how healthcare is broken. The majority do not understand problems and obstacles related to reforming healthcare. Not knowing the basics on healthcare renders people powerless. Whenever a good healthcare proposal is put on the table, the media fools the public into hating it. And every time a terrible healthcare proposal is on the table, the media fools people into supporting it.

Accurate information and understanding issues are the most relevant ingredients determining what institutions can get away with it. The only way conditions will improve is if people can do a better job being accurate on topics and supporting the right people and policies.

What currently is going on today with the senate debating about the law in cryptocurrency is proof that they are really up to get every detail we have. Even the stakers in crypto are obliged to ask KYC is alarming enough to object. CBDC is their only way because the crypto community is fighting back against this bill.

They will make the CBDC more thorough in making surveillance of the people.

As a new form of assets independent of the existing currency and financial system, it is reshaping a new financial form. As governments in various countries use additional currencies to solve economic crises, Bitcoin's financial value and advantages independent of the existing monetary system have become more apparent. With the increasing popularity of Bitcoin, the digitization of payment systems and the demand for stablecoins have prompted countries to explore central bank digital currencies.
The interest in developing and using CBDC may highlight the role of Bitcoin in the global digital economy. The introduction of CBDC will force many institutions to consider adopting digital currency infrastructure, while also providing users with the popularization of the digital currency economy, thereby strengthening support for cryptocurrencies. If CBDCs gain traction, they may actually enhance the value proposition of Bitcoin and other digital currencies. Bitcoin will successfully penetrate the mainstream financial system and occupy an increasingly important position.

Isn't Satoshi a wise man? The only thing in this world that the power of the government can't control is BTC this is what makes decentralized projects powerful over centralised projects I believe, I'm also sure that BTC will become a threat in future for CBDC because the government will see that people care more about BTC than their CBDC which is also a stable coin

But isn't the current use case of bitcoin and other cryptocurrencies are already there? I mean how can we further improve or create a new use case for bitcoin because as it is right now, it seems to be that there's already enough use cases. Also, CBDC is an antithesis of bitcoin so I don't think it's going to bolster bitcoin in any way.

I don't think government is making any changes in ther policies to give better monetary policies but all they are doing is regulating it as assets and imposing huge taxes so people can avoid using it just the same concept of using cigarette and alcohol, the high taxes means the government is discouraging the usage.

The issuance of CBDC is a huge publicity for digital currency. When CBDC is issued, many people will learn about the existence of digital currency, and thus will also know Bitcoin, a digital encrypted currency. There may be ordinary people who understand digital currency because of CBDC, but they may like to invest in Bitcoin.
It may only play a superficial propaganda role for cryptocurrencies, but the central bank and their digital currencies will never do anything for Bitcoin. They will think that cryptocurrency will threaten their projects and will be detrimental to the development of CBDC itself.

But isn't the CBDC an opposite of what bitcoin is? So how can it be helpful in bolstering or creating a new use case for bitcoin, I just don't get it. This is just another way to prevent the finance of the government from collapsing and to be able to control the people on a financial level by tracking what they're doing.

I think that usdt as a stable coin which is likened to almost the same as CBDC that will be made by America or other countries will not be very in demand in the market because I myself do not have usdt during a bull market and when it starts to bearish then I change some coins to usdt.  If CBDC uses that concept, even if it is backed up by the state, I'm not interested in a centralized system anymore.

I feel like everyone in the world already knows about bitcoin, not like anyone is left in the world who didn't hear that will end up hearing about it with CBDC. I am not saying everyone is involved in crypto, they are not, mainly the older people do not join crypto because they are already either doing fine, or do not have the time for it. However even if you are a 70+ year old person who has no interest to crypto at all, you saw the news about bitcoin skyrocketing once a year on television.

It is why it is not a shock that they will see another CBDC news but that's about it, nothing will change for them, it is just something else regarding crypto that they will ignore. I think this is the max we can reach in the crypto world at this point, we will have more and more people in the future but that will be from younger people earning money, not older people earning money.

Huge money was involved in the investment of cryptocurrency.So the government of most of the country charging taxes from the people,who invested their money on cryptocurrency.We are paying taxes for the consumption of cigarette,alcohol.But why we are not ready to pay taxes for the investment.

The operation and circulation of CBDC and the upgrading of financial system infrastructure will benefit all digital currencies and will reduce the difficulty for ordinary people to access digital currencies. Because ordinary people who understand digital currency in CBDC may like Bitcoin and strengthen their support for Bitcoin.
The central bank’s interest in developing and issuing CBDC may highlight the role of bitcoin in the global digital economy. Bitcoin allows users not to rely on the monetary policy of the central bank, nor to trust a third party to hold and transfer funds. Users need to trust Bitcoin's code and incentive mechanism to allow everyone to use it safely, credibly and openly. As the public's trust in the government weakens, bitcoin will be more accepted and promote the development of Bitcoin.

How will the central bank ever improve the uses and value of bitcoin when in fact it is a decentralized speculative asset? Bitcoin is controlled by market demand, not just by any organization there is. Bitcoin and central bank in a sentence shouldn't even be put together. The two are completely different. The one is centralized and the other one is decentralized.

In addition, central banks wouldn't dare to be involved in cryptocurrencies in general because it is not issued by them and it possess a lot of risks. Even the local banks here in our country doesn't acknowledge crypto as a currency so why would the global central organization do so? They wouldn't want to be related with crypto in any way because they see it not as an investment nor currency. As a matter of fact, they most banks see money that came from crypto a 'dirty money'. Hence, you can't deposit a fund that came from cryptocurrencies whether it came from an investment or trading. Anything related with crypto, most banks reject. Unless of course you'll find a bank that is crypto-friendly which is very rare in my country.

I don’t know about that. But the use cases for bitcoin grows naturally, as time goes on it gets more popular and a lot of people will continue to make use of it. So I don’t think it is something that will have to do with whether the government will create a CBDC or not. If we have to talk about these two, they should be discussed separately, as both can’t really have much effect on another, since they are on two different lanes. As for CBDC, since there are people who still believe in fiat, they will make use of it. But I’m yet to understand what’s happening with this CBDC and how it is work.

I'm not sure it's that simple. Firstly, most people seem to be okay with fiat, even though there's inflation with it, and it almost always (Japan has a famous exception) loses value over time. The only trouble they see is when fiat surfers from hyperinflation, but that doesn't tend to happen to most fiat currencies. Secondly, Bitcoin might be in trouble in some countries that introduce CBDC because it's introduced precisely as a more controllable alternative to decentralized cryptos.

Not all of them are doing it. El Salvador-like countries will try to implement in a good way. I think govt will not issue high taxes but they will try to regulate the whole system so that people won't enjoy full freedom in their money. That is why many countries issued CBDC and try to implement it in their economy. Banks are also eager to bring this digital currencies to the people.

We shouldn't depend on these logics because when they denounce their statements, the bad side they do to the price is very bad.
Ones this institutions comes on board, the market becomes liquid and everyone start buying blindly into their idea but as soon as the government isn't please, they pull out leaving others hanging.
Tesla did same but still, they claim they haven't sold any but I'm still waiting to see their annual financial report to believe them.

Like many people have explained here already, I am also confident about people for using CBDC right now must be the late adopter of bitcoin one day or other. We could expect them to be adopting bitcoin once they are realizing the difficulties of having centralized money against bitcoins. This must be one simple reason why I am always in favor about that all government cryptocurrencies are indirect promotion for adopting bitcoins.

If you go for studying history, only versatile things are sustaining along with human race and all others are getting outdated over the time by not coping up against the requirements of ever-changing demands of human race. This way, CBDC will get outdated very soon and people will adopt something which is ensuring their privacy and profits (which must be bitcoins as of now ;)).

Let's not mix fiat digital currencies with crypto! That fiat digital will not change anything that's important, fiat will still be fiat, just in digital form, but with the same people on the top who are running the show as before! The only good thing that will come out from this will be rising awareness of digital, but when people start to understand digital they will move to crypto as something better than fiat!
Istiak2277 is right, not all countries will try to discourage people from using crypto, some will/are very opened and friendly to crypto! I believe we will see more of that in the future, and the ones who oppose strict rules about crypto will have to rethink their decisions in the future!

Agreed.

Also, fiat currencies can't compete directly against cryptocurrency, since one is protected from inflation and the other is not. So obviously the government will not allow fair competition. In most of the cases (China is the prime example), all the government wants is to eradicate decentralized cryptocurrencies such as Bitcoin and replace them with their CBDCs. And it is not just China, countries such as Vietnam and India are also planning to do this. Anyone here really think that BTC can be replaced with CBDC? At least in my case, I don't think that it is possible.