Will countries launching their own cryptocurrencies affect bitcoin?

[thisappointed]

Countries may launch their own cryptocurrencies, but it will never affect bitcoin. Altcoins do exist because of bitcoin, but it will never be the opposite, that bitcoin do exist because of bitcoin. But their price depends on bitcoin, if the bitcoin's price is too high, then automatically Altcoins price would go on its DUMP state, and would be the other way around if bitcoin's price would be on its DUMP state.

[orpel]

I guess it is a matter of time until countries will start to use the blockchain technology.
I'm not sure that the blockchain based currencies will replace the fiat money even in 50 years.
The only question is whether countries and governments will ban the use of alt coins or will allow it to be another method of payment.

[MoneyIsDebt]

Countries may launch their own cryptocurrencies, but it will never affect . Altcoins do exist because of , but it will never be the opposite, that  do exist because of . But their price depends on , if the 's price is too high, then automatically Altcoins price would go on its DUMP state, and would be the other way around if 's price would be on its DUMP state.

i pretty  agree that it may effect the other altcoins but nothing to worry about bitcoin because being the first and being the father of all crypto currency it has its own representation in the market and i don't think so any of the cryptocurrency can effect its value or importance.
but the way many countries launching their own altcoin it will help both their economy  and importance of cryptocurrency..

[krishnapramod]

There could be two reasons why a government would want to launch their own cryptocurrency:

1. To limit the usage of bitcoins by their citizens.
2. Solely because they want to upgrade their financial system through blockchain technology. They know it has future and are well aware that this technology could be implemented in many fields, what better place than to launch a cryptocurrency.

https://www.cryptocoinsnews.com/singapores-central-bank-tokenizes-dollar-via-ethereum-blockchain/

Singapore tested digital dollar via private electrum blockchain

As to me, it is a strange way to limit the use of decentralized cryptocurrencies

Did you read about it somewhere or it was entirely your own fantasy to somehow justify the original claim? Other than that, I don't really see how blockchain can help governments. Note that the question is not about money transfers as such (which is what your link is about), it is about creating a new government currency based on the blockchain technology which would circulate along with a local currency. I guess you will have to explain how this "upgrade" could make the existing fiat systems both more efficient and effective

Not fantasizing. I did not make any claim, it was just a question, a hypothetical one

And what does it have to do with the creation of a new blockchain based government currency?

This is what the question is about if you missed the point. Further, it was said that "governments [...] want to "offer" population "their" coin so they will be able to control the movement of money". As you can see, this is quite different from what you say (the piece by the link you posted talks about money transfers, not making a new currency). Basically, what you say is inconsequential to the point that governments might want to create their own cryptocurrency. So why would they want that, i.e. create a separate coin based on the blockchain technology (apart from "limiting the usage of bitcoins by their citizens")?

You wanted to know why government want to launch their own cryptocurrency. Gave two reasons.

There could be two reasons why a government would want to launch their own cryptocurrency:

1. To limit the usage of bitcoins by their citizens.
2. Solely because they want to upgrade their financial system through blockchain technology. They know it has future and are well aware that this technology could be implemented in many fields, what better place than to launch a cryptocurrency.

Why would government want to implement blockchain technology into their financial system?

The technology will simplify the payment process, reduce time take for transactions, enhance transparency and system resilience and reduce the cost of long term record keeping.

And what does it have to do with the creation of a new blockchain based government currency?

I guess this is about the involvement of banking system with cryptocurrency. How do you think a centralized cryptocurrency would work? Through banking system only. It is cryptocurrency because it is using distributed ledger/blockchain technology and digitalized tokens of fiat. Without involving banking system it would be just another decentralized currency like bitcoin.

The Monetary Authority of Singapore (MAS) has successfully completed a proof-of-concept pilot to explore the use of blockchain for interbank payments. Partnering with a consortium of financial institutions, blockchain infrastructure was used to produce a digital currency issued by MAS and methods were tested to connect bank systems through distributed ledger technology.

[Xester]

Yes because if there would be cryptos in their country they would try to make use of it.  And since it is new its price still low and many could afford it.  It will affect the bitcoin but not that much.  Cause prices of cryptos in their country would depend on bitcoin .  

[AicecreaME]

This kind of actions are already been done by other or most of the big countries because they think that it is too late to adopt bitcoin so they just try to make their own and get profit from it and we can see that nothing affects bitcoin because it is a very strong currency and also the king of all the cryptocurrency in the market so it is not that easy to get affected by just a small cryptocurrency.

[shield132]

If don't talk only about bitcoin and see coins market cup, we will see that there are ethereum, litecoin and etc very serious altcoins which even are better than bitcoin but still can't beat bitcoin. So imagine new coin launched by countries which everyone knows will be manipulated, how will it be more popular than safe and anonymous bitcoin? There is no way and also before bitcoin they have to beat altcoins and that's very hard.

[ocid]

Yes all that can happen if it is bitcoin already widely accepted by all countries and can be inaugurated its existence because if until now bitcoin not only can be inaugurated by some countries how can the country is able to create crypto for each country itself.

[Yakamoto]

Yes because if there would be cryptos in their country they would try to make use of it.  And since it is new its price still low and many could afford it.  It will affect the bitcoin but not that much.  Cause prices of cryptos in their country would depend on bitcoin .  

There are already countries that are trying to roll out their own cryptos (and I believe Russia has one that they're developing right now) but they're always going to be nothing more than a form of digitalized fiat that will do absolutely nothing to the market aside from trying to follow a fad and appear to be relevant. If countries started to produce their own cryptos that incorporated systems for contracts and the like, then we would have an interesting competitor. Since that doesn't exist, they're all no better than just fiat and essentially worthless compared against other cryptos.

[deisik]

And what does it have to do with the creation of a new blockchain based government currency?

I guess this is about the involvement of banking system with cryptocurrency. How do you think a centralized cryptocurrency would work? Through banking system only. It is cryptocurrency because it is using distributed ledger/blockchain technology and digitalized tokens of fiat. Without involving banking system it would be just another decentralized currency like bitcoin

You are apparently confusing two adjacent but still different things

Namely, a payment system with a currency. In case of Bitcoin these are essentially the same. But this is not so in respect to fiat currencies. First, there is cash which has absolutely nothing to do with digital fiat. They are entirely different systems of money itself (not even payment systems as such) which don't intersect, though they still represent the same currency. If we talk about digital fiat, there can be numerous ways in which payments can be made, for example, through wire transfers, card-to-card payments, payment processors, etc. What you try to explain here refers to yet another payment system, not a new currency per se

[slackcryptoz]

Countries launching their​ own digital currency will always help the financial advancement within the country. This doesn't have anything to do with the bitcoin as the bitcoin as the features bitcoin has got can't be used anywhere else.

[iram3130]

Countries launching their​ own digital currency will always help the financial advancement within the country. This doesn't have anything to do with the bitcoin as the bitcoin as the features bitcoin has got can't be used anywhere else.

It will affect Bitcoins and other altcoins in many ways, think about the reason why countries want their own currency, so that they can manipulate the value of it and if they gain popularity then the next step would be banning other cryptocurrencies.

[cotton ball]

Countries launching their​ own digital currency will always help the financial advancement within the country. This doesn't have anything to do with the bitcoin as the bitcoin as the features bitcoin has got can't be used anywhere else.

It will affect Bitcoins and other altcoins in many ways, think about the reason why countries want their own currency, so that they can manipulate the value of it and if they gain popularity then the next step would be banning other cryptocurrencies.

The launch of new altcoin in a country will still have an effect on bitcoin because after all it will still use bitcoin as a price benchmark, altcoin are not directly paired with fiat because the cryptocurrency is a system that can only be applied in online space. Of course this will also affect the bitcoin price because the volume of altcoin-bitcoin conversion will automatically increase.

[Prohodimec]

Countries launching their​ own digital currency will always help the financial advancement within the country. This doesn't have anything to do with the bitcoin as the bitcoin as the features bitcoin has got can't be used anywhere else.

It will affect Bitcoins and other altcoins in many ways, think about the reason why countries want their own currency, so that they can manipulate the value of it and if they gain popularity then the next step would be banning other cryptocurrencies.

The launch of new altcoin in a country will still have an effect on bitcoin because after all it will still use bitcoin as a price benchmark, altcoin are not directly paired with fiat because the cryptocurrency is a system that can only be applied in online space. Of course this will also affect the bitcoin price because the volume of altcoin-bitcoin conversion will automatically increase.

But it seems to me that the difference will be small, if today there are many crypto currency Bitcoin feels very well among them. Then I'm not surprised that countries create their own crypto currency and there is nothing bad in this.

[ladydark]

Already,some countries have created their crypto currency.For example..E dinar.Those currencies are for their country use only.No people from outside the country would show interest in buying such currencies.But bitcoin is a universal currency bought by people of all countries.Such countries are centralized and controlled by governments.But bitcoin is not centralized and uncontrolled by governments.So bitcoin would be in the favourite list of investor and such currencies would not affect bitcoin.

[Pettuh4]

Yes because if there would be cryptos in their country they would try to make use of it.  And since it is new its price still low and many could afford it.  It will affect the bitcoin but not that much.  Cause prices of cryptos in their country would depend on bitcoin .  

Bitcoin will crash them all because those cryptocurrencies will be localized and nobody will know it beyond the birders of those countries. Likewise the only the exchanges in those countries will recognize them therefore international transfers might not be possible with those Altcoins. I don't think they are going to have any effect on Bitcoin and they even have feasibility problems.

[dimadimaivchenko]

 maybe some of them
like USA, Japan and EU zone
cause those financial systems are working well and have huge reputation. But i dont think each country could handle to make their own .

[Adbitco]

I don't think so if it's going to affect bitcoin in any way. The governments of such countries would be using or misusing there so called cryptocurrencies in the same way they have been their fiat currencies. The cryptocurrencies developed or designed by them will have the same flaws their fiat currencies have so it will never affect bitcoin. Bitcoin is unique and original. Bitcoin has taught us all what an ideal currency should be so no threats for bitcoin from such so called cryptocurrencies backed and supported by the governments of various nations.

[countryfree]

It would only appeal to newcomers. Many of the early bitcoiners joined for the very precise reason that they do no trust their government, the central bank and/or local currency. Imagine China or Russia launching its national cryptocurrency. No foreigner would buy it, and locally, only hardened government' supporters would get it. They're all doomed to fail.

[bestluck]

if countries will launch their own coin then they will like people to adopt their own coin and they will convince everyone to use only their national coin so it will affect bitcoin but still bitcoin will used for international use.