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

[Evilmorty69]

Nothing! Btc is to strong nowadays.

[machinek20]

Nothing new here, every country is planning to create their own crypto, the idea is to gained control of the transaction and taxed the users, everyone already know the government trick, the country just creating another alt coin and not  a lot people like this idea and not a lot of people  will interested

[Lipe490]

Nothing will happen, it will be one more cryptocurrency in the market. The main idea of cryptocurrency is its descentralization, so If you have a Central Bank issuing their own cryptocurrency, be sure that this isnt good. The whole idea of a Bank controlling cryptocurrency is unacceptable. History has shown us that Banks controlling fiat currency already is dangerous for people and with cryptos that wouldn't be any different. Since Bitcoin has became popular, they try in everyway have even a minimum control of cryptocoins and everyday we watch news of banks being related to cryptocurrency. Today I saw an article saying that the Barclays Bank, Credit Suisse, CIBC (Canadian Imperial Bank of Commerce),  HSBC, MUFG (Mitsubishi UFJ Financial Group) e State Street have joined forces to work on the so-called "single settlement currency" created by the Union Bank of Switzerland (UBS) to make financial markets more efficient. This single settlement currency aims to enable financial groups to pay for transactions between them or to buy securities and stocks without having to wait for traditional transfers to be completed. Now they want to work with central Banks from all around the world, but for me that just won't work!

[Ucy]

They probably should ask themselves what is attracting so many to Bitcoin/cryptocurrency.
If they can identify and provide a better solution I bet nobody will be interested in Bitcoin. So can these elites aka government issued Cryptocurrencies offer 100% Privacy, Anonymity, true Decentralization and anti-inflation which Bitcoin currently offers.

Really funny how rival countries are seriously scheming everyday to bring down a Single Coin.

Am silent on the attack because their every moves  tend to push Bitcoin really high eventually.

[1Referee]

Really funny to how rival countries are seriously and scheming everyday to bring down a Single Coin.

It's quite understandable. How would you feel when something threatens the existence of your entire system? Governments are just trying to offer people an alternative, but they fail to understand that people no longer invest in crypto just because they are going up and down in value badly, or use it as digital currency, but also to escape from their barbaric governmental system. It's called financial freedom that people are after. At a later point when things become even more serious than is the case right now, the governments will slowly start to notice that change. Governments are very slow in catching up with things, regardless of what they are trying to get hold of.

[ibrohim]

although central bank has their own cryptocurrency, I don't think it will influence the bitcoin or even replace it. There is nothing happen with bitcoin because it is the first cryptocurrency and the origin. Nothing to be worried. Bitcoin will continue to grow, it is just tricks and controls of business.

[hatshepsut93]

There are a few possibilities. National and private cryptocurrencies can bring more attention to decentralized cryptocurrencies and serve as gateway for them. They can also help fight a myth that cryptocurrencies are bubble and ponzi scheme, because the launch of national cryptocurrencies would mean that the technology is sound. But there's also a possibility that national cryptocurrencies would be very centralized and have very few things in common with decentralized cryptocurrencies, and their proponents might use it to criticize the last ones. And right now it's not clear what effect will be more noticeable.

[fullhdpixel]

Nothing will happen, it will be one more cryptocurrency in the market. The main idea of cryptocurrency is its descentralization, so If you have a Central Bank issuing their own cryptocurrency, be sure that this isnt good. The whole idea of a Bank controlling cryptocurrency is unacceptable. History has shown us that Banks controlling fiat currency already is dangerous for people and with cryptos that wouldn't be any different. Since Bitcoin has became popular, they try in everyway have even a minimum control of cryptocoins and everyday we watch news of banks being related to cryptocurrency. Today I saw an article saying that the Barclays Bank, Credit Suisse, CIBC (Canadian Imperial Bank of Commerce),  HSBC, MUFG (Mitsubishi UFJ Financial Group) e State Street have joined forces to work on the so-called "single settlement currency" created by the Union Bank of Switzerland (UBS) to make financial markets more efficient. This single settlement currency aims to enable financial groups to pay for transactions between them or to buy securities and stocks without having to wait for traditional transfers to be completed. Now they want to work with central Banks from all around the world, but for me that just won't work!

I think it will be more suitable for the prevailing of bitcoin all over the world. If the banks start trading and dealing in their own crypto currency then the trust of the people will build up very quickly over the digital currency, and the market cap and the value of bitcoin will rise in days. I think there is nothing to be panic that if the central banks have started bitcoin then what will happen. Nothing will happen.

[cotton ball]

We and also bitcoins need to adapt to economic civilization, if bitcoin develops unreasonably, it will destroy all the economic and sovereign structures of the world. The government needs to set the conversion center into their currency, it will not be problematic with bitcoin because this is just a way to prevent inflation in Fiat.

[stompix]

Nothing will happen if they just start their cryptos.
The scenarios depend on a lot of facts and most important on the laws that will be passed.

Let's assume that once the crypto is launched the government of Angola decided to ban all other cryptos.
Probably the effect on the ban will be 0 as well as the launch of the coin cause everybody is so damn poor they don't have BTC in the first place.

Now, let's say the one that does this move will be the US government.
You can expect the price of BTC to plunge to the levels of the Silk Road shut down.

It doesn't matter what currency they would issue and how they will do this, what is most important would be thier attitude to BTC afterwards.
And allow me to be a little pessimistic about his. Especially if we talk about China, Russia and the other countries with same politics.

[Exister]

The old institutions are outdated and where they might have served to benefit civilizations in the past, their power has waned to the point that they must focus only on self preservation and this is only to the detriment of civilization. populations are unable to percieve this because our worldviews are carefully narrowed by our own processes of personal growth within a complex and frightening real world that would paralyse us with fear and indecision.

Governments are completely under the control of banking cartels. and the media, academic cartels head up our pantheon of exalted gods who thrive in harmonious cooperation because of their shared strategic interests.

The fiat coin will be called cryptocurrency and the belief will be reinforced by powerful propaganda campaigns that permeate all areas of life.The adoption by merchants will be compulsory, usage convenient, and incentive campaigns will abound.

Misinformation about the nature of cryptocurrency will be encouraged because it makes it difficult for the ignorant to differentiate between the false crypto and the real.
It will also cause the ignorant to make more mistakes and take greater losses and this effect is desired because it will hurt the image of bitcoin.

In their hubris the intelligence community will continue to hoard security exploits and leak them to criminals who can then terrorize the vulnerable public.
Many will flee into the arms of authority.

But cybersecurity is much more difficult for the centralized systems. and serious incidents will spur people to educate themselves and one another.
The vulnerable human persons who operate even from within the great and terrible organizations will feel the cooling of the fires of fiat privilege by the incentive of real cryptocurrency ecosystems.
Finally, the coming of new generations will continue to place greater and greater disruptive pressures on the outdated institutions as they age and begin to crumble.
Every glimpse of truth helps us find our way to wend closer to the path of reality and allows life to continue to stave off extinction.

This is happening and the rates of what happens and to what degree and when they do are not yet written.

We got to know that just if bitcoin can increase its value all the more so does our chances to mitigate a cataclysmic transition into the future.

[bigmaster23]

That would be the surge of btc, and for bank having their own crytocurruncies they will having some way of any possible problem to implement it on the people out side the world

[iamTom123]

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.

yeah when they really making their own cryptocurrency it will break the tag line of bitcoin (and other cryptocurrency) about "decentralized currency" central bank will control all about their up coming alternative coin which they going to make. we don't see decentralized aspects  coin anymore of their coin.

A crypto currency distributed by a central bank, I don't see how that wold be any different that the local fiat.
Maybe because crypto currencies get more popular every day the central banks thought they want to participate and bring something similar on the market. But I don't see who would want to buy a state controlled crypto currency.

It would just be another fiat money though in digital form and will never be on the league of the Bitcoin or even Ethereum that we know of. In fact, if not manage right, it can even be a big joke. Why? Cryptocurrency came into being because we want to get away from the control of the government where anytime they can just order to print more paper money thereby slowly destroying its own value and can lead to more inflation. I know that China and Russia are right now planning to have their own state-controlled and backed cryptocurrency. Of course, since it has the backing of the government there can be some success initially but people will just revert back to the paper money because the government can not create any possible future gains for the users or holders to use the digital currency they are introducing because the value is controlled by the government. Again, in the end, it would just be a big joke.

[jubalix]

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.

Exactly, crytpo is resistant to how legacy centralized systems work. You have to give up control to be trusted. Banks could make a crypto, but then they would have to give up all control of it.

Also when we get to the x Trillion mark, banks just wont have the money anymore.

I am not saying banks or fiat is intrinsically bad, as they can bring capital and energy Labour, although if I can say they have become massively sub optimal due to lack of competition which then translates to massive and systematic miss allocations of wealth driven by gov policy (via issuance of licenses) and total lack of market discipline.

I don't think there is any part of the economy that remains untouched by quant easing, bad loans, bad allocations of wealth.

Essentially the face value of money is completely delinked to work value, and we are in hyper inflation at near record low interest levels.

Look at cost of living and property costs, both types of commodities that are hard to rig going up massively.

BTC is the only un-rigged asset left.

[monkeydominicorobin]

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?

The learning curve in cryptocurrency is way too steep. How are they going to launch an indoctrination program when it comes to their cryptocurrency. The central banks cannot possibly make that happen. In the case of bitcoin it took 8 years to indoctrinate people to come to a point where they know everything about it. Through word of mouth. But banks can't do that. They need 100 years to make people comfortable in using a central bank issued cryptocurrency. Besides it is a scam. They can't create a cryptocurrency as popular as Bitcoin. Bitcoin community is spending zero dollars to promote itself for the past 8 years. But central banks can't do that even if they spend billions nobody would want it. Bitcoin rose to popularity because people hated the incompetence of central banking. So why would people with cryptocurrency skills adopt a central bank issued cryptocurrency.

[rodskee]

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.

i agree if cryptocurrency manage by the central bank have rules to reagulate the bitcoin how to control like fiat money and taxes for bitcoin as currency are scary it because all currency under control by the goevernment have regulation.

[terrific]

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?

Nothing will happen if they will issue their own cryptocurrency and they are not for the cryptocurrency because they have their online banking and other the same features which is centralized. They'll not going to gamble their business for cryptocurrency because it won't be called as a cryptocurrency if it is centralized. Crypto's are well known of it's decentralization and even if they will issue their own crypto, I doubt it many will fall for it but only those uneducated people about crypto.

[mazzaneo]

I think bitcoin needs to forge its own course and stop looking over its shoulder at what central banks are doing. The primary difference between bitcoin and central bank issued crypto currency is, and always will be control, borders and community. Central banks want to control their currency, dont want community consensus and will run a currency to the benefit of their country not the world.

[romero121]

When central banks start issuing their own digital currency, sometimes the circulation of bitcoin might decrease to some extent. The same never lets the bitcoin fall in value or go out of use. Also when each country's central bank issues an cryptocurrency the usage gets limited within the country and for cross border transactions a common asset is required. Bitcoin might serve as the common asset.

[Crislyn4116]

I think yes because now a days almost all altcoins connected to bitcoin