What happens to Bitcoin if Central Banks start issuing their own cryptocurrency?

[WhiteBeard]

Posted today on Reuter's wire:

http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html

They are thinking about it!  Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?

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[HabBear]

They already have a digital currency, what do they need a crypto currency for?

You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.

[Herbert2020]

this is not new! they have been working on it for a long time. the plan to create their own blockchain has been around for a couple of years now and they are working on it hard. but it won't be exactly the same cryptocurrency as we know. probably won't even be public or open source or anything like that. you will just have access to the wallet they issue and nothing else.
in the end, no matter what is created, bitcoin remains the decentralized cryptocurrency that everyone knows. and theirs will be another altcoin a heavily centralized one this time.

[Kakmakr]

Easy answer : This Alt coin will be a copy of fiat currencies under full government control. Instead of money being printed from thin air, supply in this Alt coin will be managed by central banks. < They can change the supply at will, without ever having to have any type of consensus from the citizens >

Once these Alt coins are in place, pressure will be placed on Bitcoin users to stop using it. < strict regulations and laws >

Governments < let's say most > are chosen by their voters, so if you allow this to happen, you are part of the problem. Vote for a government that supports Bitcoin.

[AGD]

Nothing will happen to Bitcoin, because banks are already working with virtual currencies using encryption right now. They will never issue a crypto currency, that

a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...

Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.

[boyptc]

Nothing will happen to bitcoin mate, banks knew it and planned it even before when crypto currencies are starting to bloom. The only thing that it's still different to crypto, it's not decentralized, we know on how banks are running and they will not get the sentiment of the people that are enthusiasts and optimistic about crypto currencies and especially in bitcoin.

[iamTom123]

Nothing will happen to Bitcoin, because banks are already working with virtual currencies using encryption right now. They will never issue a crypto currency, that

a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...

Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.

This can be true. Governments via their central banks can issue their own version of cryptocurrency and can even be backed by the government but they can never be cryptocurrency in the strict definition of the term because of the embedded control which the government can yield on the currency. Well, they can impose order for people to patronize it in place of the fiat money but it does not mean that Bitcoin can be gone. Bitcoin has the ability to evolve and transform itself if there is a need it sees. Plus it can take many years before any government can be able to perfect their own version of cryptocurrency.

[centralbanksequalsbombs]

Nothing will happen to Bitcoin, because banks are already working with virtual currencies using encryption right now. They will never issue a crypto currency, that

a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...

Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.

True.


Central bank (or any central control) on a crypto = less secure = means open to manipulations and hacks = worthless

Decentralization with no central point of failure = maximum security = cannot be manipulated nor hacked = safe and sound store of value
=Bitcoin

[DoublerHunter]

If the central banks starts to issue their own cryptocurrency then it will not affect bitcoin a lot because people are now smarter and they will use bitcoin more than the central bank's cryptocurrency because bitcoin has a higher potential in profiting because it is decentralized and it is not controllable by the central banks or even the government.

[nappoleon]

They either saying, they're giving up control or deceiving people by marketing. Cause you know, "cryptocurrency" is hot right now. I bet their just going to make a digital version of whatever they're issuing. Cause if they calling it digital currency it wouldn't make much buzz, so they're calling it cryptocurrency as it is so much sexier.

[gentlemand]

It'll make the case for Bitcoin that much stronger.

A centrally issued crypto, not that it'll have the same principles, would up their level of control to nightmarish proportions.

Right now regular currency is digital but it runs through a labyrinth of private banks, routers and obscure systems. With something crypto esque the central bank retains full control over absolutely every aspect.

They can inflate, deflate, shut down, devalue, debase, bail in, lock you out, all with the press of their one big red button after one meeting.

[ngm-]

It will never replace BTC.

The real threat is when they will launch it, they will try to force people to buy it instead of BTC.

If they do not allow bitcoin, if owning bitcoin becomes a fraud, then even if I do not believe it would kill BTC, it would be hard time for it..

[talkbitcoin]

well it will be a very interesting thing. the technology is out there and it is open source so everyone uses it. and if banks use it to improve some of their systems, then even better. we will continue using them too.

but that doesn't mean anything about bitcoin and how much people are using it should change. bitcoin is not just a cryptocurrency that uses the blockchain technology.
instead it is a cryptocurrency that does these:

a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source

[Emoclaw]

Nothing happens.
Banks can do whatever they want, but a cryptocurrency that is regulated, inflationary and centralized is no different or actually worse than FIAT due to the technical limitations that encumber it.
Bitcoin will thrive no matter what.

[Prodigan786]

Nothing going to happen with bitcoin because it's the original form of cryptocurrency even it will gain more value for being the trendsetter the oldest thing gain more value.

[EthereumPY]

Yet another premine altcoin

[richardivan]

Nothing going to happen with bitcoin because it's the original form of cryptocurrency even it will gain more value for being the trendsetter the oldest thing gain more value.

Yes I agree with you, since Bitcoin is base of all coin so when central bank creating their cryptocurrency it'll become altcoin, their coin can't replace Bitcoin even it's made from central bank

[Yuhee]

I would understand why it could get to that instance but i guess its just another economic problem to have a cryptocurrency version of any fiat that is out there. Its like making another money with the same value. They already have electronic money and it would take many years to put there currency in regulation and i think they would also need there own blockchain if they want that currency to have free and fast transactions.

[Flomo]

bitcoin will continue to grow, ignoring it. all know at cryptocurrency is currently growing rapidly, taking part of the world's business control.

[Fatunad]

Posted today on Reuter's wire:

http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html

They are thinking about it!  Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?

Its just all the same and this news isnt really new anymore which Banks would really issue their own coin but i guess why would they do such thing and would bother to do so? It would be just like on local fiat itself if they would made their own coin and people will really still look up on a decentralized one rather than on a centralized one.They can really stop people on using such thing.