Goverments creating digital currencies - Threat or Opportunity?

[ronbennett_]

Still, the crypto media welcomes this

I'm not exactly sure why that is, since any government-controlled cryptocurrency won't be anything like bitcoin and would only lead to governments having more power than they already do.  Would you really want a completely traceable currency as your country's default form of money?  I can see why China loves this, but those of us in non-communist countries should be wringing our hands with anxiety lest the idea catch on.

And the same goes for coins like Libra (haven't heard much about that one lately, btw).  Any corporation or country that controls a centralized cryptocurrency can view people's financial transactions at will.  That isn't a good thing at all IMO.

Its fully contrary thats why Crypto becomes famous because it do opposes this kind of control.If government would create their own coin then it cant really be considered to be a crypto.

Government does like to control everything and monitor on what their citizens been doing when it comes to their money.This had been the traditional things that do happen in fiat system
and even if they do become online then i dont see any difference.

What I have followed over the years is that governments try to get more control over cryptocurrencies as well. Some cryptocurrency exchanges even ban trading with some privacy currencies on their own platform because some governments dont want to have them traded.

Cryptocurrencies should be decentralized and trading should also be free. Governments have not done anything for cryptocurrencies, nor have they created or helped them. Nevertheless, they just want to rule what is right and wrong for us and also tax whatever we gain. I soon suspect that they would also tax air.

[thesmallgod]

My own concern is what is the essence of creating your own digital currency when you have a fiat currency?. I'm sure since it is a country thing, it might not be globally accepted, if it so then maybe they can only use it as a means of accepting more traders to their products and service by paying with their digital currency without having to do wire transfer which might attract high service charges. Aside this, I do not see any reason why they should be having their own currency

[HarmonyA]

government-driven change to digital currency could bargain the security and trust of the entire monetary framework. Digital currency, constrained by governments and their national banks, are a simple method to have mastery on occupants. Governments can square assets, increment swelling, just as in general command over organizations and residents.

[Shasha80]

I think positively if many countries whose governments make their own coins, like what China is doing now.Because indirectly raised
the popularity of cryptocurrency globally, especially bitcoin. Later more and more people began to study cryptocurrency, this can be
a mass adoption that is very fast effect. Or in other words the government is starting to open up opportunities for bitcoin is more
widely known throughout the world. And I hope that in the end the government will accept bitcoin in the end.

[Subbir]

I think the govt is giving the digital currency an opportunity to enhance the country you've got rightly said that this is often not a threat but it's a positive idea for our country. If the govt doesn't receive any tax or subsidy from crypto if the govt creates digital currency then something will attend its fund and therefore the illegal currency will stop being a digital currency. this may improve our system and increase the demand for crypto.

[Ozero]

I think positively if many countries whose governments make their own coins, like what China is doing now.Because indirectly raised
the popularity of cryptocurrency globally, especially bitcoin. Later more and more people began to study cryptocurrency, this can be
a mass adoption that is very fast effect. Or in other words the government is starting to open up opportunities for bitcoin is more
widely known throughout the world. And I hope that in the end the government will accept bitcoin in the end.

Most governments will issue their own stable coins, that is, their digitized currency, and this process is inevitable. This can be considered a logical step in the development of cryptocurrency and it carries both additional opportunities for it and is a certain threat to a decentralized cryptocurrency. There is a certain threat that stable coins of various states will be used more by people as a means of payment than a decentralized cryptocurrency.
The appearance of such a large number of stable coins of various states further reduces the possibility of their acceptance of bitcoin.

[magneto]

It's not a threat to Bitcoin at all -- Bitcoin can only grow stronger for every instance of centralised money that is created and continues to come up short. Every failure of the centralised and the state, is a victory for Bitcoin. Threat to other centralised altcoins? Oh for sure.

Opportunity? Why not? Every government that realises it is creating yet another centralised currency - just more transparent and more under their control, might like blockchain and in that sense recognises Bitcoin tech as valid.

The one thing that worries me is the fact that governments may impose restrictive regulation on top of issuing their own cryptocoins, in order to preserve the status of their centralized money as the only "legal tender" or legal currency at the very least in their own jurisdiction.

That will be detrimental for bitcoin and other decentralized currencies, no doubt.

But even then, there is really no way of enforcing these bans and censoring the network entirely - which is one of the beauties of the BTC network in the first place.

[buwaytress]

It's not a threat to Bitcoin at all -- Bitcoin can only grow stronger for every instance of centralised money that is created and continues to come up short. Every failure of the centralised and the state, is a victory for Bitcoin. Threat to other centralised altcoins? Oh for sure.

Opportunity? Why not? Every government that realises it is creating yet another centralised currency - just more transparent and more under their control, might like blockchain and in that sense recognises Bitcoin tech as valid.

The one thing that worries me is the fact that governments may impose restrictive regulation on top of issuing their own cryptocoins, in order to preserve the status of their centralized money as the only "legal tender" or legal currency at the very least in their own jurisdiction.

That will be detrimental for bitcoin and other decentralized currencies, no doubt.

But even then, there is really no way of enforcing these bans and censoring the network entirely - which is one of the beauties of the BTC network in the first place.

It is worrying, but take a look at it from a point of invention, which is driven by necessity.

Bitcoin was birthed from a necessity to remove money from the hands of the few. And while a lot of people believe recognition and acceptance by states is good for Bitcoin (it is, of course), Bitcoin doesn't need that.

If anything, Bitcoin was built to resist all these forms. People may not have realised it then, but now with everything going on with fiat and with governments blocking freedoms and censorship, people finally get it. And Bitcoin will continue to improve and evolve to resist that.

[Janation]

I think the govt is giving the digital currency an opportunity to enhance the country you've got rightly said that this is often not a threat but it's a positive idea for our country. If the govt doesn't receive any tax or subsidy from crypto if the govt creates digital currency then something will attend its fund and therefore the illegal currency will stop being a digital currency. this may improve our system and increase the demand for crypto.

It is a good opportunity but it is a way to end the decentralization of cryptocurrencies.

The reason why a lot of people are using it is because of its decentralization. The government will not be able to snoop with every transaction that we do but if they create one, they would be able to maybe make a way to tax cryptocurrencies and leave us to the path that started when Bitcoin is made, the freedom.

[Gheka]

I think positively if many countries whose governments make their own coins, like what China is doing now.Because indirectly raised
the popularity of cryptocurrency globally, especially bitcoin. Later more and more people began to study cryptocurrency, this can be
a mass adoption that is very fast effect. Or in other words the government is starting to open up opportunities for bitcoin is more
widely known throughout the world. And I hope that in the end the government will accept bitcoin in the end.

Your positive analysis is very accurate, with the government creating digital currency, it will boost people's curiosity then people will be more clear about crypto knowledge, the demand will increase when this is a place of investment with many opportunities and profits, opportunity for us and even for crypto right now as the government opens the door further to it. However, a threat to crypto in the market still exists when the government is a dictatorship and wants to govern people, they probably only allow people to use their products, bitcoin will become banned products

[@prashant]

It will only increase awareness about crypto among general public and soon they will be redirected to btc and other major altcoin. In my opinion it will be good step as after they introduced  their own digital currency other crypto service will soon follow and we will se rapid growth in crypto space as it will become legal.

[julius caesar]

If the government is going to create their own coin, this is gonna be good since they are already accepting the idea of cryptocurrency. It will for surely gonna help the community of cryptocurrency because it is already accepted nationwide. The more consumer, the higher chance that the value of that coin will rise up.

[KnightElite]

I think positively if many countries whose governments make their own coins, like what China is doing now.Because indirectly raised
the popularity of cryptocurrency globally, especially bitcoin. Later more and more people began to study cryptocurrency, this can be
a mass adoption that is very fast effect. Or in other words the government is starting to open up opportunities for bitcoin is more
widely known throughout the world. And I hope that in the end the government will accept bitcoin in the end.

Your positive analysis is very accurate, with the government creating digital currency, it will boost people's curiosity then people will be more clear about crypto knowledge, the demand will increase when this is a place of investment with many opportunities and profits, opportunity for us and even for crypto right now as the government opens the door further to it. However, a threat to crypto in the market still exists when the government is a dictatorship and wants to govern people, they probably only allow people to use their products, bitcoin will become banned products

Yes it will create awareness in the society. I do not see it as a threat and I see it as opportunity. We still have poor payment system, if the governement will also create digital currencies then it can improve the past payment system and it can boost the economy. It will also create awareness in the environment where people can become interested in cryptocurrencies. Curiousity is also a factor because people are becoming curious first before they become interested in adopting cryptocurrencies.

[USBitcoinServices.Com]

This is a big opportunity for the crypto ecosystem/industry. This will enhance the whole crypto and give trust to existing and new potential investors. CBDC is a new wave where the government is trying to do their own projects but in the end, decentralization will win. And governments, as we know, are not decentralized at all. They will fail to keep controlling the masses.

[7788bitcoin]

My own concern is what is the essence of creating your own digital currency when you have a fiat currency?. I'm sure since it is a country thing, it might not be globally accepted, if it so then maybe they can only use it as a means of accepting more traders to their products and service by paying with their digital currency without having to do wire transfer which might attract high service charges. Aside this, I do not see any reason why they should be having their own currency

The idea behind a digital currency from the government is to have more control over the fund transaction and have a better control and it can be traded as we do with fiat now, i am not expecting everyone to transform to the digital world globally in a short period but if the government forces everyone to transform then it will be another story.

[Desscount]

I prefer a country that uses cryptocurrency rather than paper money, this will definitely be a good advantage for crypto currencies, with a country that fully supports Bitcoin will definitely become gold in the future

[andamarina]

Opportunity for them not for people, cause they will know all and will try to make more money from this.

[Golftech]

I prefer a country that uses cryptocurrency rather than paper money, this will definitely be a good advantage for crypto currencies, with a country that fully supports Bitcoin will definitely become gold in the future

Country who are open thru innovations are places that good to visits when you are a crypto supporter. It's easy and convenient that you don't need to bring paper cash since it's can be process using your mobile devices.
It's opportunities to any government as long as they know how to deal with this system and have a good background knowledge to use it as an advantages.

[Gozie51]

I prefer a country that uses cryptocurrency rather than paper money, this will definitely be a good advantage for crypto currencies, with a country that fully supports Bitcoin will definitely become gold in the future

It is all a gradual process. A country has to be adequately inclined with the use of digital currency first before fully discarding paper money. As far as I know however, I'm yet to see that happening.

[South Park]

Some governments recently try to create their own crypto currencies (e.g. China), according to reports. Some welcome this as a good step towards mass adoption of cryptocurrencies, others don't like it. Still, the crypto media welcomes this and we should consider whether this is good news in general or not.

What would be your opinions be on this? Should more and more governments create their own digital currencies and introduce them to their population or should we not support the creation of digital currencies made by governments?

The cryptocurrencies backed by governments are going to appear regardless of what we think or want, the question is what to do about it? And I am not really excited about such coins, most likely they are going to be an even more intrusive form of money than what we have already, why I should exchange my bitcoin that is permissionless for a form of money in which the government is going to control everything and that it is closed source? It does not make sense.

This new development is both an opportunity and a risk, it can be an opportunity since more people will be exposed to cryptocurrencies and they may decide to adopt the real thing in the future, but they are also a risk because people may believe they are adopting cryptocurrencies when they are just using the coins of the governments.