What are the odds that the government/banks will truly create their own coin?

[Mike Mayor]

I think it is really simple. As technology increases the government needs to keep up. You cannot expect to still be issuing out fiat when everyone else is doing it digitally. It will be very interesting to see how this is all dealt with and how things develope as time passes. It has been 10 years already and so much has changed. The future is very exciting for us.

Today, there are a lot of cryptocurrencies. Nothing will change if governments add some new cryptocurrencies to the market. They cannot threat bitcoin. Whether a government create a decentralized or even centralized cryptocurrency they make bitcoin more popular. Every one try to study about cryptocurrencies, first will know bitcoin.

I think if the government will create there own cryptocurrency then it'll be more centralized or regulated, I don't think they will create a decentralized one because it means they can't control it

But what's in it for them?

They already have fiat which is already digital (and likely with some cryptography involved along the way) and which they can fully control. These rumors (of some government creating their own variety of cryptocurrency, mostly a Chinese one) have been circulating since at least 2015, but no one has yet explained why would they want that

Okay, someone could come up with the idea they want their own cryptocurrency to compete with Bitcoin but this suggestion assumes they consider Bitcoin a threat. However, if they really considered it a threat, they would likely just ban it and get done with that (as some countries already did anyway)

Simple, so that they can tax it. I think it is more likely an innovative country that creates its own blockchain for its own cryptocurrency.

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[deisik]

I think it is really simple. As technology increases the government needs to keep up. You cannot expect to still be issuing out fiat when everyone else is doing it digitally. It will be very interesting to see how this is all dealt with and how things develope as time passes. It has been 10 years already and so much has changed. The future is very exciting for us

Yes, they need to keep up

But does it mean that they should blindly follow someone's steps if it doesn't offer them any advantages? So to give everyone a proper perspective on my doubts, let's rephrase my initial question in the following way. What advantages and benefits will creating another currency in addition to an already existing one provide to a government? And please note that modern fiat is already digital for the most part anyway (the fact which I mentioned straight away), and it's been that way for a few decades already

Simple, so that they can tax it

How's that?

[doomistake]

I think it is really simple. As technology increases the government needs to keep up. You cannot expect to still be issuing out fiat when everyone else is doing it digitally. It will be very interesting to see how this is all dealt with and how things develope as time passes. It has been 10 years already and so much has changed. The future is very exciting for us

Yes, they need to keep up

What advantages and benefits will creating another currency in addition to an already existing one provide to a government? And please note that modern fiat is already digital for the most part anyway (the fact which I mentioned straight away), and it's been that way for a few decades already

To add another problem on their sleeves, maybe?

Governments are insecure on everything that surpass them, and one of those are cryptocurrency (Bitcoin, to be specific), and creating a coin of their own doesn't change the truth that they can't make one (like bitcoin), the result will be the same, they could only make Altcoins, that can't go to bitcoin's level of complexity to become invincible. They just don't know when to give up.

[wxa7115]

The odds are good that these governments will make their own coin. Just take a look at whats happening between US and China. The trade war seems to have them competing on edge and now China has announced that they will be pursuing cryptocurrencies more it seems that the US won't let itself get beaten and is also investing time and resources to look into more blockchain projects and solutions.

We don't need more coins, we need legit coins that are used in the real world. Hopefully these governments can provide these, and that they are exchangeable with Bitcoin and other cryptocurrencies.

When the government begin to create their own cryptocurrencies then the adoption of those coins will be high because they would be a legal way to transfer wealth from one individual to the other, but make no mistake those coins are not going to be any different than fiat and if anything they are going to be way worse, it will be a way for the government to try to keep control of the money supply, so whatever money that you have in your wallet will never be truly yours.

Why do you think that China is interested in creating their own cryptocurrency when they have shown time and time again that they are against freedom? Because in their hands cryptocurrencies will be a way to keep an even greater control of their population.