Is CBDC a direct threat to cryptocurrencies?

[cryptoboy007]

I read somewhere that the proposed Central Bank Digital Currency (CBDC) will possibly not be deployed on any of the existing blockchains but might possibly be issued on a permissioned DLTs. this way it gives regulatory bodies a central control over the digital asset. If CBDC goes to full-scale adoption, will it be a blessing or curse to the mainstream adoption of Bitcoin and other cryptocurrencies?

[bttmember]

I think the value and demand of original cryptocurrencies will definitely increased as a state owned digital currency comes out because it will attract masses and they will start taking crypto seriously and they will start believing that it is a real thing and digital currency is a reality because at the moment common man donot understand and recognize digital and cryptocurrencies but after the launch of state backed digital currency crypto market is expected to explode, also keep in mind the fact that people will be able to exchange state backed digital currency to btc or eth which will surge the market as billions of new money will flow to crypto market through this channel.

[Jating]

I read somewhere that the proposed Central Bank Digital Currency (CBDC) will possibly not be deployed on any of the existing blockchains but might possibly be issued on a permissioned DLTs. this way it gives regulatory bodies a central control over the digital asset. If CBDC goes to full-scale adoption, will it be a blessing or curse to the mainstream adoption of Bitcoin and other cryptocurrencies?

I don't think it will be a direct threat, it might compliment bitcoin and other crypto currencies in my opinion. Remember that these CBDC are going to be tax, so it you are a crypto enthusiast are you going to a a fan of it? And it can be used to track everyone, sort of to spy on our financials, government will know where and how are we spending our wealth through this CBDC.

Maybe we can see more regulations on crypto, but it doesn't mean they can stop it from being mass adopted. We can co-exist, use bitcoin and then we have CBDC for cashless and internal use of each society.

[CaVO32]

I think the value and demand of original cryptocurrencies will definitely increased as a state owned digital currency comes out because it will attract masses and they will start taking crypto seriously and they will start believing that it is a real thing and digital currency is a reality because at the moment common man donot understand and recognize digital and cryptocurrencies but after the launch of state backed digital currency crypto market is expected to explode, also keep in mind the fact that people will be able to exchange state backed digital currency to btc or eth which will surge the market as billions of new money will flow to crypto market through this channel.

Yes, I don't think it will be a threat but more of a gateway to those noncrypto users appreciate the benefits of crypto. If they will find crypto via the state owned digital currency, then it is only a matter of time before they will know the pros and cons using the state owned vs btc/other alts. it will also strengthen the idea that cryptocurrencies are not scary or dangerous to venture on if they will see that there is already a state owned digital currency. So I guess, instead of a threat, it will drive more adoption as people will learn more about the real benefits of using cryptocurrencies not owned by the government.

[Lagduf]

I doubt if that will happen

https://cointelegraph.com/news/cbdcs-of-the-world-the-benefits-and-drawbacks-of-national-cryptos-according-to-different-jurisdictions

CBDC will actually increase the adoption for crypto caused by crypto can also interact with CBDC as it will be the same as stable coin that already exists. CBDC is fully controlled by the regulators but that will have the same chance to integrated with crypto ecosystem too.

[JHORN]

I read somewhere that the proposed Central Bank Digital Currency (CBDC) will possibly not be deployed on any of the existing blockchains but might possibly be issued on a permissioned DLTs. this way it gives regulatory bodies a central control over the digital asset. If CBDC goes to full-scale adoption, will it be a blessing or curse to the mainstream adoption of Bitcoin and other cryptocurrencies?

Central bank digital currency will go full scale adoption, that's certain but for someone like me I don't have interest, using that CBDC you will be monitored by the gov, I'm 100% sure of that and secondly CBDC wont bring profits like bitcoin and other altcoins, meaning CBDC will be backed by 1:1 Fiat

[Kotone]

It will be a huge threat if ever participating countries implement it. Of course safe to say that people who are into bitcoins will be threatened by it. Some will be swayed by fud that this will be a greater enemy to decentralization.  More investors will be skeptical and force to sell if ever this will push to their goal. Monitored speculative asset by government is highly dangerous cause they have agends that might not favorable for everybody hence only ro them. Speaking of which, are we trusting some politician who has record of corruption on this one?

[KaratX]

Since Fiat isn't a threat to crypto how will Central back digital currency be a threat since it will be a digital Fiat money? All we are going to see is another use case like stable coins.

[cryptoboy007]

I read somewhere that the proposed Central Bank Digital Currency (CBDC) will possibly not be deployed on any of the existing blockchains but might possibly be issued on a permissioned DLTs. this way it gives regulatory bodies a central control over the digital asset. If CBDC goes to full-scale adoption, will it be a blessing or curse to the mainstream adoption of Bitcoin and other cryptocurrencies?

Central bank digital currency will go full scale adoption, that's certain but for someone like me I don't have interest, using that CBDC you will be monitored by the gov, I'm 100% sure of that and secondly CBDC wont bring profits like bitcoin and other altcoins, meaning CBDC will be backed by 1:1 Fiat

I get the disadvantages of using CBDC. In terms of control, it is nothing different from banknotes deposited into an account

[chichidori]

It will likely help introduce crypto to more people than being a threat, the downside is the digital money is centralized and controlled by the government other countries are now participating in testing the said digital money.

[joseyphil82]

CBDC represents Fiat, that's why everyone will start using CBDC but how will this become a threat to crypto? You can't make profits from CBDC, that's certain, we invest in crypto for live changing opportunities but CBDC can't do this

[Greatchu]

Central bank coins are here to backed Fiat digitally, yes it will be useful just like how USDT and other stable coins are useful for traders but that's that, crypto fans like the freedom, decentralization, and privacy that crypto give and also the ability of appreciating in value over time, this is what makes crypto different.

[masterrex]

I think it's not, because CBDC is probably a Stablecoin so it does not have the full functions as the real cryptocurrency like Bitcoin and Altcoins. On the other point, because its a central bank sanction, I'm sure it was a centralized coin too. base on that observation I'm pretty sure it will not dethrone Bitcoin as the king of cryptocurrencies. the keyword is "decentralized versus centralized" the proliferation of cryptocurrencies was prospered much because it was promoting decentralization thats why I believe that decentralized cryptocurrencies still taking the Lead against those Centralized ones like CBDC.   

[cryptoboy007]

I think it's not, because CBDC is probably a Stablecoin so it does not have the full functions as the real cryptocurrency like Bitcoin and Altcoins. On the other point, because its a central bank sanction, I'm sure it was a centralized coin too. base on that observation I'm pretty sure it will not dethrone Bitcoin as the king of cryptocurrencies. the keyword is "decentralized versus centralized" the proliferation of cryptocurrencies was prospered much because it was promoting decentralization thats why I believe that decentralized cryptocurrencies still taking the Lead against those Centralized ones like CBDC.   

I get your point, but in terms of crypto payment adoption, I am thinking CBDC will probably drive mainstream focus away from using crypto stablecoins like USDT, PAX, BUSD as payment and would instead prefer to use CBDC

[dhemasm]

I think no, CBDC still adopt a centralized and not decentralized so it's basically just another mainstream digital currency like we already see now, Not really will becoming threat for cryptocurrencies since it's have different concept and also CBDC was more focused on banking system rather than mass adoption.

[jessyj48]

CBDC is just a Fiat digital version, no threat here at all and it this goes as plan top exchanges might start implementing the central bank currency on their platforms, it's not a big thing to talk about for me