The Government-Backed Digital Dollar (USD)

[Ucy]

I guess this will be built on so called private Blockchain.
A Blockchain isn't really a Blockchain without being immutable, permissionless, censorship resistant, decentralized, transparent, anonymous, trustless etc.. In my opinion, if your Blockchain does not meet up 50% of this standard then it's not worth being called a Blockchain. Better they just stick to normal centralized method for "better experience".

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[JeffBrad12]

Well in asia cashless society is already a thing using digital payment that's centralized and not blockchain based but instead some financial technology company are competing to gain the biggest market share. These cryptos that are backed up government currency may become something in the future and there's no doubt that the blockchain system could be the advantage compared to any other digital payment out there although it may be centralized and as usual, the government will hold a huge portion of the total supply I guess. But who knows right?

[clickerz]

Well in asia cashless society is already a thing using digital payment that's centralized and not blockchain based but instead some financial technology company are competing to gain the biggest market share. These cryptos that are backed up government currency may become something in the future and there's no doubt that the blockchain system could be the advantage compared to any other digital payment out there although it may be centralized and as usual, the government will hold a huge portion of the total supply I guess. But who knows right?

There are several digital currencies already in Asia, say for example Alibaba they have their own platform and is widely used in China and still expanding to other countries. A government back digital dollar or cryptocurrency is a good move for government to counter some financial institutions' dominance. here a country can issue and control its own currencies sam with other countries without lending from World bank and other financial institutions. Though this is maybe inflationary but lets the government tackle this.

[TastyChillySauce00]

What is so special about government backed digital currency if there's already one created by private companies out there. Take it for example Apple pay they just work basically the same as any other digital payment application and the function is just well as the name says to pay something and now recently Gcash aswell. Such a thing as Government backed digital dollar is actually just a waste of time because there's no advantage to having it while some other services are already providing similar option. The government is not going to compete with corporation and private company because they are all about free market (although government could). The only difference about it is that Government print the money meanwhile service like Apple pay and Google pay are reserving the fund in their system.

[aardvark15]

I believe that all developed countries will eventually eliminate paper money and coins. It’s just going to happen at some point. All transactions will be digital whether it’s a cryptocurrency or just bank transfers using debit cards or some new technology.

[doomloop]

The reason bankers and the wealthy are throwing mountains of capital and political leverage behind mass adoption of cashless societies is the greater control it offers. If they illegalize cash and paper money. Then they have complete control over monetary transactions.

I think it's also governments who are heading off currency liquidity risks. Everyone is becoming increasingly worried about the next financial crisis and its effects on liquidity. When depositor money is locked inside the banking system (as opposed to cash), it's easier to prevent shocks to the economy. There are no bank runs in a cashless society.

Governments control our money in every possible way. And they move the market according to their Desires. If we face any financial crisis, authorities are responsible for that. To save oneself from such situations, it is best to invest in Bitcoin and other decentralized digital currencies. Bitcoin should be the first preference due to its ability of producing high profits within short duration of time. Banks will stay with us forever by evolving in accordance to changing time

[dothebeats]

As long as the US remains to be the number one bully of the world and as long as Trump is seated as the POTUS, no change will ever happen for the US, and no initiative from the current government would be seen to improve whatever things need to improve in there. Not that I'm saying that our society now needs cryptocurrencies as a step forward, but at least just the thought that a change needs to happen from our current flawed system. But then again, it seems like the US has their attention and energy directed towards the admin's enemy on the seat and not the welfare of its constituents.

[BitHodler]

The government is not going to compete with corporation and private company because they are all about free market (although government could).

The government definitely isn't about free markets, because if that was the case they wouldn't kill off free market participation by overregulating every aspect of the markets within their borders.

When it comes to money, governments are ruthless, which we have seen with Facebook's Libra. If the government was about free markets they wouldn't have been so hostile against the issuance of their corporate form of money.

[1Referee]

When it comes to money, governments are ruthless, which we have seen with Facebook's Libra. If the government was about free markets they wouldn't have been so hostile against the issuance of their corporate form of money.

That was to be expected. Facebook has a potential reach of 3-4 billion people worldwide. This is the first time in history a company has that much power.

I would shit my pants right off the bat as government would I find out that they are planning to launch their own currency that's backed by a basket of fiat currencies. It got the us government so worked up that they found it necessary to praise Bitcoin and point out the flaws of Libra as a currency. 

I do not mind Libra because I truly support free competition between different types of money. Another benefit is that it could help this ecosystem attract more liquidity, which it badly needs. People might not like centralized stablecoins, but they have propped up this market a lot and they will continue to do that.

[Febo]

After Facebook announced it's Libra digital currency, several countries have expressed their interest of launching a digital currency of their own. China has already announced that it'll be working on Blockchain technology for a digital version of the Chinese Yuan while other countries have done the same. Most recently, German banks have requested the European Union to launch a programmable "digital euro" that would replace the current monetary system (physical Euro). All these developments shows us that we're getting closer to a "cashless society" than we've thought.

While all of this is exciting, it seems that the USA will be left behind in the development of a blockchain-based "digital dollar" (USD). After all, the country has been known to be quite strict about the development of the crypto industry. With many fierce regulations against crypto and Blockchain tech, many mainstream crypto businesses and companies have decided to stop providing services to US citizens. Poloniex will no longer serve US customers, which greatly diminishes the adoption of crypto within the US. This makes me wonder whenever the US will allow a "Digital Dollar" to happen in the future or not? If it doesn't migrate to the digital realm, then I'm afraid that other countries will take the lead in the world's economy. It's a matter of being ahead in the latest technologies to obtain supremacy. If the US remains reluctant to accept Blockchain technology into its current monetary system, then it'll be left behind without a doubt.

What do you think?

How come you skipped Petro? It was first government coin. I believe is like 2 years old. Yes it have big problems with adoption, but that is normal. Specially since there is such hate of Venezuela in some parts of the world.

[asus09]

After Facebook announced it's Libra digital currency, several countries have expressed their interest of launching a digital currency of their own. China has already announced that it'll be working on Blockchain technology for a digital version of the Chinese Yuan while other countries have done the same. Most recently, German banks have requested the European Union to launch a programmable "digital euro" that would replace the current monetary system (physical Euro). All these developments shows us that we're getting closer to a "cashless society" than we've thought.

While all of this is exciting, it seems that the USA will be left behind in the development of a blockchain-based "digital dollar" (USD). After all, the country has been known to be quite strict about the development of the crypto industry. With many fierce regulations against crypto and Blockchain tech, many mainstream crypto businesses and companies have decided to stop providing services to US citizens. Poloniex will no longer serve US customers, which greatly diminishes the adoption of crypto within the US. This makes me wonder whenever the US will allow a "Digital Dollar" to happen in the future or not? If it doesn't migrate to the digital realm, then I'm afraid that other countries will take the lead in the world's economy. It's a matter of being ahead in the latest technologies to obtain supremacy. If the US remains reluctant to accept Blockchain technology into its current monetary system, then it'll be left behind without a doubt.

What do you think?

Many countries want to stop for launching Facebook or Libra coin because they keep backed digital dollar or USD using for every transaction, I think they don't know whit USD always have inflation price every years but keep trusted with this currency, why not give chance for bitcoin become legal currency and looking how increase their assets without inflation value after ten years later.

[Murat]

First of all, You have to adopt every new invention for your own interest, In the case of the USA will not accept Blockchain technology then they will run behind in the future, I think the USA government will take a u-turn towards the blockchain system, I think most of the government will take their own position in this platform because it will be the future money and cash money will not be available in the coming days. not only that Germany and China but also some other countries will start creating their own crypto and in this way, cryptocurrency will be the mainstream in the monetary platform.

[ecnalubma]

US might also adopt a digital dollar but as far as their regulation is concern I think it will not happen very soon will also spark a new debate and opposite opinions. But once the government will implement something there’s really no barriers can halt it.

[youdacapt]

The potential gates for adoption of the largest official economy are always centered on the US and China, their influence is very strong globally, China has presented itself to the blockchain and stable coin, but the US prefers to tighten many things beforehand related to pre-regulation for how to control all transaction flows, they begin with an obligation to replace a special US-based website exchange domain, as a condition for all valid exchanges. Digital dollars will be a strong ammunition afterwards, I think they are still keeping it a secret at this time.

[Hydrogen]

The reason bankers and the wealthy are throwing mountains of capital and political leverage behind mass adoption of cashless societies is the greater control it offers. If they illegalize cash and paper money. Then they have complete control over monetary transactions.

I think it's also governments who are heading off currency liquidity risks. Everyone is becoming increasingly worried about the next financial crisis and its effects on liquidity. When depositor money is locked inside the banking system (as opposed to cash), it's easier to prevent shocks to the economy. There are no bank runs in a cashless society.

Its banks and regulated finance that is usually the biggest offender in regard to liquidity risks. It never takes banks long to move in and offer capital support to countries like russia, drug cartels and terrorist groups after the US passes economic sanctions against them. The type of news story posted below is common for the banking industry.

HSBC Helped Terrorists, Iran, Mexican Drug Cartels And Shady Russians Launder Money, Senate Report Says

A Senate report released ahead of the embargo time revealed that HSBC’s lax anti-money laundering policies allowed Mexican drug money, Iranian terrorist money, and even suspicious Russian money to enter the U.S. and gain access to U.S. dollar liquidity over the last couple of years.

https://www.forbes.com/sites/afontevecchia/2012/07/16/hsbc-helped-terrorists-iran-mexican-drug-cartels-launder-money-senate-report-says/

Long before bitcoin or digital currencies existed, it was common for many to criticize the government and banks for "creating money out of thin air". That is the original source for that trope which today is almost universally made exclusively against bitcoin and digital forms of money.

Banks and governments might be said to represent the biggest liquidity risks across the board in terms of them doing business with groups and demographics under sanctions, expanding balance sheets and money supply without proper oversight or accountability and greatly exceeding what might be described as safe levels of debt in terms of state deficits which are commonly measured in trillions.

[Abiky]

I guess this will be built on so called private Blockchain.
A Blockchain isn't really a Blockchain without being immutable, permissionless, censorship resistant, decentralized, transparent, anonymous, trustless etc.. In my opinion, if your Blockchain does not meet up 50% of this standard then it's not worth being called a Blockchain. Better they just stick to normal centralized method for "better experience".

Exactly. The Blockchain without its key characteristics (immutability, censorship-resistance, and decentralization) cannot function as intended. Centralized digital currencies would look more like databases instead of a real blockchain. That's the case nowadays with Ripple's XRP where the company controls the whole digital ledger as we know it. They control a large supply of XRP tokens across the network, making it more like a central bank 2.0 than anything else. If governments decide to start rolling in their own private blockchain solutions, then I believe they'll fail in the long run. It's best for them to create a sort of sidechain or simply a token within an existing public blockchain network in order to increase security and reliability. But that's a decision governments would need to make if they're planning to launch a digital currency of their own.

As for a government-backed digital dollar (USD), everything will the depend on the US government itself. We all know how fierce US regulations have been towards the crypto/blockchain industry in general. Many mainstream crypto companies and businesses have flocked from the US into other countries because of this. Even now, the US has been reluctant to accept Facebook's Libra cryptocurrency from becoming a worldwide digital currency. If other countries start rolling in their digital currencies successfully, then the US might be left behind. I'd be surprised if the US announces that it'll launch a digital version of its USD that would make use of Blockchain technology.

How come you skipped Petro? It was first government coin. I believe is like 2 years old. Yes it have big problems with adoption, but that is normal. Specially since there is such hate of Venezuela in some parts of the world.

Of course, how could I forget that? Indeed, Petro was the very first government-backed digital currency ever created. But, it didn't turned out to be successful after all. That's why I didn't mentioned it in the first place, since it never came into light within the mainstream world. It didn't last for long, probably because of pressure from the US and among other factors. Still, I believe that this movement from Venezuela may have encouraged other countries to do the same.

The world's most prominent countries (like China and Russia) have already announced that they'll be launching a digital currency of their own. With Facebook's announcement of Libra, the process of government-backed digital currencies has been accelerated by a long shot. Soon, we'll be able to interact with digital Fiat leaving physical cash as a thing of the past. But I'm concerned that if the US remains behind other countries in launching a digital currency of its own, the USD will be replaced from its status as the reserve currency of the world. The US needs to adopt the latest technologies (especially Blockchain technology) to stay ahead of the game. Just my thoughts

[Twentyonepaylots]

yes who knows.

but weren't USDT the first to have been created as stablecoin in crypto? it may not be backed by the government but its something they could track still since its centralize. its interesting to see if the blockchain of these government backed digital currencies are for open to public which the address of institutions are also being identified because if its gonna be that way, government are going to have a transparency, i don't think they'd like that.

For sure thing USDT is backed by anything that has a value, it would not be pegged on USD if it is not. Aside, they already proved this one. USDT as centralized and regulated might be the reason for the government to be transparent in terms of financial.But as much as regulation is concern, we might still not be able to use any of these government backed cryptocurrencies for daily living although it would only look like a typical fiat.

[LUCKMCFLY]

The negative rates that have been generated have been very high, since the FED has washed their hands and said they are not concerned with fixing the problem, what they have in itself is despair that they are disguising it with Blockchain, with Blockchain and a development In Cryptocurrency they know that they can have fast liquidity, only with a PUMP when they are launched they will capitalize a lot of money, which, in the same way they will use to pay debts, the hegemony of the dollar is a fact, but the economy is suffering worldwide falls, there is no longer how to make up without beginning to see some economic losses.

[Pearls Before Swine]

Honestly, who cares if gov'ts adopt blockchain tech for their own currency or anything else?  If any country creates their own coin, it's going to be centralized and used to track their citizens' financial transactions.  That is not a good thing at all.  There is still no way to have complete anonymity in a financial deal than using cash.  Paper currency or coins.  Even bitcoin can be tracked somewhat, because it is only pseudo anonymous.

I won't celebrate any of this, not if they're using blockchain technology to limit people's privacy, and that is precisely what will happen with a state controlled coin.

[1Referee]

I won't celebrate any of this, not if they're using blockchain technology to limit people's privacy, and that is precisely what will happen with a state controlled coin.

People don't know what cheer for anymore. If they read about blockchain adoption they automatically think it's going to be Bitcoin or any of the other shitecoins, but it's nothing of what we value about the existing distributed networks. The whole idea behind private networks is control and privacy for the one in charge, which is the government.

Everyone using that network will end up suffering one way or another. All it takes is a payment to the wrong entity (can be an enemy of the state, crypto exchange, etc) and you will lose access to the network and thus your money. If that happens and you don't own an asset like Bitcoin that allows you to transact permissionlessly and digitally, you have a big problem.