Goverments creating digital currencies - Threat or Opportunity?

[ronbennett_]

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?

[TimeTeller]

In my opinion, the move to create their own digital currency is a positive development.
It means, that the government believes the benefits gained from this technology.
With their action, they are indirectly showing to its constituents that they trust crypto.
Which will then give a positive mindset towards crypto and so it will create more demand of usage.
I consider it as an opportunity to widen the usage of crypto and not a threat.
People later on will see the difference between a decentralized vs centralized coin.
So it will be their choice which one they will use when that time comes.

[ronbennett_]

In my opinion, the move to create their own digital currency is a positive development.
It means, that the government believes the benefits gained from this technology.
With their action, they are indirectly showing to its constituents that they trust crypto.
Which will then give a positive mindset towards crypto and so it will create more demand of usage.
I consider it as an opportunity to widen the usage of crypto and not a threat.
People later on will see the difference between a decentralized vs centralized coin.
So it will be their choice which one they will use when that time comes.

You're right, but we should still look at the topic carefully. They are also more likely to trust their own crypto. Many government spokesmen also affirm that they only find blockchain technology interesting and important and would only like to use it. It is probably a little too early to discuss this topic, but thanks for your detailed answer.

[gentlemand]

They are using aspects of cryptocurrency technology to create supercharged fiat currencies.

If people are unhappy about government meddling, surveillance and control now they're going to be screaming if these ever get implemented.

They will be able to debase your money with no way of combating it, shut you down if they don't like one of your transactions, extract money from you no matter where or how you're storing it and places like China will be able to control where and how you spend your money or simply make you a total non person incapable of spending, earning, sending or receiving it.

That'll make the case for real crypto more compelling than ever. However it may also make getting in and out of crypto very hard to impossible. It needs to get some form of its own economy that can stand completely outside government money before governmentcoins become the norm.

[electronicash]

government having their own digital fiat means adoption, its another leap for crypto.  the world is slowly in transition to paperless and cashless transaction and this digital currencies are going to be part of this transition. the technology has mature after 10 years, hundreds to thousands of developers seen how blockchain can help not just to currencies, government will make use of it for its an opportunity to correct the old system.

[Febo]

Some governments recently try to create their own crypto currencies (e.g. China), according to reports.

Venezuela central bank made concurrency. China had not made anything. So there is nothing to discourse about china, but a lot about Venezuela. Petro is distributed to people as part of a social support.

[sazonk]

The positive side is that for example 50% of developed and developing countries make regulations for their people to utilize blockchain technology and apply it in their daily lives, this is a positive thing where local governments try to educate their citizens about technological progress in the form of blockchain systems, without realizing they will need a tool or an embodiment of the blockchain system in the form of digital currency made by the government.
The negative side is clearly this will create instability in the value of real currencies, because the digital currency in the form of crypto will often not be able to occupy a stable value at a certain point if the crypto that has been made follows the global crypto market share.
From this, I concluded, Crypto is decentralized and cannot be governed or controlled by one of the parties, for example, which controls the most BTC, still cannot. Because this crypto is anonymous, no matter how great a government makes crypto because it wants to have a stable price it is still classified as local crypto and only applies to certain regions.
This is a good opportunity for some people who want to invest not globally, but it can also be a threat if all countries agree on the use of crypto with the strongest rules then it will be a benchmark for the price of the crypto.
As we know, Bitcoin and Altcoin can be said to stand on their own and develop naturally.

[CryptoBry]

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?

My own opinion is that this can be both a threat and an opportunity. We know that this can mean that we will have a big competition and it is coming no less from the government. The government will, of course, be exerting all the effort they can to make their cryptocurrency be accepted as wide as possible and be more successful that decentralized versions. However, with this development, there is that validation that cryptocurrency must be working otherwise no government will be taking it in. In the end, we would realize that this can be more of a big opportunity and less of a threat, depending on how things will turn out to be. We should always remember that government-sponsored and controlled cryptocurrency is just a digital form of their own fiat money, just getting cosmetic changes and maybe in another form. Eventually, there will be platforms that can integrate government cryptocurrencies with the usual cryptocurrencies we already have and this can widen the market more and adoption can then be heightened.

[mu_enrico]

I'm more interested in OP's opinion about this issue. What do you think? A threat or opportunity? Then, a threat or opportunity to whom?
It's nice to see the competition between the government's cryptocurrencies and decentralized cryptocurrencies in a free market. Let the user decide what's best.

[Hallmader]

They are a threat to the real cryptocurrencies. Governments are not improving the fiat system by creating digital currencies. Well, they are not anymore into paper bills and metallic coins and that is already an improvement. But if we look at the system, it is just the same. The same governments and bankers and elites ruling the value and the supply and the distribution. People might think they are trusted cryptocurrencies sanctioned by the government.

[maydna]

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 other governments don't have to create their digital currencies if they don't have much info about that. But that will be the other opportunity for people who involve in the crypto world. That will be a good step from the government to join in the cryptocurrency because that will give trust in the people, and they can see their government support cryptocurrency. We can support their digital currencies as we support the other coins, but I wonder if the price for the government coin will be stable or it will fluctuating because if that is the stable price, then we use that coin as the other stable coins.

[kapalmabur]

I'm more interested in OP's opinion about this issue. What do you think? A threat or opportunity? Then, a threat or opportunity to whom?
It's nice to see the competition between the government's cryptocurrencies and decentralized cryptocurrencies in a free market. Let the user decide what's best.

threats and Opportunity will always coexist, you know that, the world government makes the cryptocurrency very good, because cryptocurrency is now seen as more useful, and that is one of the positive sides, I'm sure the price of Bitcoin will follow the news and go up, but if the government makes USD, EURO, etc. digitally, then stable coins will be threatened, in my opinion

[aomakun]

I personally welcome this well, but if we talk about a country, surely they will make full control of the use of currencies in the crypto industry. but making a crypto currency from one country will have an impact on other crypto industries, for example people who don't know bitcoin then they can find out even then if the country does not impose restrictions on access to search for people in the crypto industry.

[HabBear]

Some welcome this as a good step towards mass adoption of cryptocurrencies

Cryptocurrency backed by governments is just fiat currency trading over the blockchain...it's not cryptocurrency by the definition we use. The primary rules of cryptocurrency are (1) ownership should be decentralized and (2) the money supply is finite. Now these aren't laws, just general defining characteristics.

Is China agreeing to stop printing money? No.

In fact, having government backed currency trade over a blockchain just ensures that they can watch an record every single transaction.

[sovie]

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?

Honestly they are not cryptocurrency rather digital currency just like normal other digital version of fiat. We must have our concepts clear about crypto i.e decentralized and distributed. So these government backed cryptos are not opportunity nor threat to real cryptocurrency.

[charlesmichel1]

I consider that national digital currencies is neither threat, nor opportunity for us. Digital currencies are more like unsuccessful attempts to steal the idea of Bitcoin.

[d.kevin29]

They are using aspects of cryptocurrency technology to create supercharged fiat currencies.

If people are unhappy about government meddling, surveillance and control now they're going to be screaming if these ever get implemented.

They will be able to debase your money with no way of combating it, shut you down if they don't like one of your transactions, extract money from you no matter where or how you're storing it and places like China will be able to control where and how you spend your money or simply make you a total non person incapable of spending, earning, sending or receiving it.

That'll make the case for real crypto more compelling than ever. However it may also make getting in and out of crypto very hard to impossible. It needs to get some form of its own economy that can stand completely outside government money before governmentcoins become the norm.

Exactly, this is going from bad to worse and it's going to be such a smooth transition nobody will even notice it.

Anyone who tries their best right now to do tax evasion or anything else you're not supposed to do will have no choice but to respect every little law out there as soon as this becomes a thing.

"If these ever get implemented" it's not an "if", they will. China, Russia, Japan and all the other countries aren't working on & testing a national cryptocurrency just for the fun of it. Basically, whoever was able to evade taxes or whatever else will have no way of doing it again. Like I said yesterday, it's going to be the worst version of fiat we can imagine, traceable fiat wearing the costume of a cryptocurrency so it sounds cool to the human ears. The horror part is, it's going to be traceable in every kind of way. They'll know where every penny goes and comes from.

So it's not a threat to cryptocurrencies unless everyone who has not studied Bitcoin yet would believe their sh*tty national cryptocurrencies work the same way BTC does. Because many of the people already using cryptocurrencies have a false image of what's a cryptocurrency and what isn't, thanks to those sh*tcoins and centralized tokens.

However, it is a HUGE and disastrous threat to our privacy. The strategy is simple: step 1 - attract all these fools and present them this "100% legal cryptocurrency" & pull the "Bitcoin competitor" card out, and step 2 - take more control over our privacy than ever before and know everything about the way we spend & receive money.

Scary.

[davis196]

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?

There's only one positive thing about governements trying to create their own blockchain/cryptocurrencies.
The goverment will invest into the education of more programmers and blockchain developers.Those developers might later join the Bitcoin Core blockchain and help with the further development of BTC,by bringing new ideas and expertise.Anyway,the government coins might not be decentralized,hence I don't think that they would be real cryptocurrencies.

[Kyraishi]

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?

I would honestly consider it to be neither.

I would definitely not call the introduction of central bank coins a blessing for BTC, because of the fact that it has nothing to do with the whole decentralization movement that bitcoin is based around.

It is also not a direct threat to bitcoin or other decentralized cryptos per se because of that fact. Bitcoin has coexisted alongside fiat for a long time, and given that centralized bank coins are exactly fiat in another form, it is very unlikely that BTC will all of a sudden be driven out of the market because of these coins.

The truth is probably somewhere in the middle, instead of these extremes.

[AniviaBtc]

In my opinion, the move to create their own digital currency is a positive development.
It means, that the government believes the benefits gained from this technology.

Let's say that they adopted the use of cryptocurrency in their country. The conclusion for that is they see that it has a good effect proportional to the growth of their economy. That's why their development is increasing compared to their society without cryptocurrency. I think that in some point it is an opportunity for them to become a developed country.

People later on will see the difference between a decentralized vs centralized coin.
So it will be their choice which one they will use when that time comes.

As they observed the different effects of having decentralized and centralized coin, what if the other one was implemented? Would it be okay if they also choose the other option? If that so, then I will prioritize the centralized coins where I can manage it with my own manipulation.