Central Bank digital currencies

[Emily Perkins]

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

[Bttzed03]

Type "CBDC" in the search bar (upper right side) and you'll see previous discussions about CBDC and it possible/potential effect on BTC or cryptocurrency adoption. Here's just one of them - Poll: coming CBDC help or hurt bitcoin?

It is important to note that every comment in those threads are still personal opinions and you can agree/disagree with them. Have fun reading.

[Lorence.xD]

They need a faster way to transfer the money to their citizens is one of the biggest reason for developing their own digital currencies. Other nefarious possibility is for them to control their citizens although this is just a wild speculation and it is still far from true. The good thing about CBDC is that it alleviate inflation due to continuous print of fiat currency.

[XCANA]

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

That won't hurt Bitcoin IMO, The Central Banks are centralized and will create a centralize coin which can only be useful for citizens of their respective country. For these countries to create their coins won't have no impact on Bitcoin which is decentralized coin, Maybe Bitcoin will be use for something else like a reserve coin for the world, nothing in my own opinion will be a threat to Bitcoin because it's decentralized.

[dothebeats]

Some things to consider:

• CBDCs specifications complement the need for control and easier access to alteration on money supply to stimulate the economy.

• Due to its existence within the digital realm (or whatever), it is easier to keep track of it and store it, making the government's job a lot easier for taxation and legal purposes.

• It's the new fad. They might just get into it before other people can and capitalize this 'innovation' for their popularity within their constituents for a re-election or something.

There are tons of reasons why they want to push through with CBDCs, and there are also countless of threads that tackle just that. These things above are just some of those I can think off the top of my head.

[boyptc]

CBDCs are no threat to bitcoin.

What these banks see is that they are becoming late in the adoption of technology. And the development and rush that they do with CBDC is the need that they see to cope up with the latest technology that bitcoin has.

No need to worry from these cbdcs.

[BrewMaster]

i don't know why you think they are "rushing" to build their own coin but i have seen a couple of them struggling to get the project to start for a while now. i believe i saw the first one over 3 years ago. so far we haven't had anyone even being close to finishing, some of them realized it is a pointless effort as people aren't going to go for it any more than they go for the banks already and they can't compete with the decentralized money aka bitcoin.

so they are just a threat to their own pocket since it costs a lot for them to create it.

[fauzan123]

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

As we know, currently the pandemic is in a state of danger in the world, of course, this is very influential for the economic conditions of each country, because many issues say that several countries have experienced recession due to a worsening economy.

Of course, with a digital currency it is hoped that it can reduce the economic burden of a weakening national currency, this is one of the right ways considering that digital currency is currently very popular in the world.

[de_ingenious]

CBDC is much easier to use and track, especially in current circumbstances, but it's not even crypto, it's just digital currency. I wouldn't trust it anyway

[Ryker1]

Well, central banks around the globe are rushing to create their own digital currency. Perhaps because of the pandemic because nowadays people are getting cling to online transactions and fiat can also be a way to transmit the virus and government are doing their part to stop the spread of covid 19 in their country. It is hard to say that -- this digital currency that each government is trying to have will be a threat to bitcoin IMO it could also be a platform where these countries may soon be enlightened and consider adopting bitcoins as one of the promising currency where the value is much secure and could lessen the chances of getting manipulated by any institution for the interest-only of some.

[death69]

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

CBDC is never a threat to bitcoin. Bitcoin is created for anonymity and decentralization while CBDC is totally controlled by the bank. Bitcoin offers people the chance to escape the reality that every is centralized by the government and banks. Therefore, even though central banks are rushing to publish their first digital currency, many people on this forum and other forums will continue to support bitcoin no matter what the situation is. People are free to choose what they want, either bitcoin or CBDC's digital currency

If you have a choice, will you choose bitcoin or will you sell your identity with a cheap price? Its your own making and make a choice which brings you happiness

[fiulpro]

Threat : No
They are just a new form of fiat and they shouldn't even be called digital cryptocurrencies, if they are backed by the government they won't be that volatile this tell me: how would they be different from normal fiat ?

They won't be private at the same time you should be assured that the government will keep on tracking your every move.

People won't use them if they do have a better option.

You should understand that the whole concept of crypto themselves is : decentralized system which can benefit the economy and the users alike but when banks wants to get involved in the same the corruption would do no good and at the end people will have much more problems even bigger than fiats.

[cabron]

They just don't want to be left behind now. The Chinese digital Yuan is already in operation, if they let it spawn it will likely be the first to dominate in the new market economy. Each CBDC has to produce its own now to make sure there will be a balance.

The cryptocurrency they are releasing though is very centralized as its meat for the citizen of the country.  Its not a threat to BTC but it's definitely a good sign that BTC and all other crypto can be accepted.

[mindrust]

They probably liked the idea of  a track-able non-anonymous currency which they can confiscate it whenever they want from anybody and whatever amount they desire.

Since tether already has proven that it can work, they'll probably try it on people. Their biggest enemy is the old people who refuse to use complicated electronic devices.

[palle11]

Maybe it could mean they are seeing the future of cryptocurrency and they could think it is a strong competition to fiat and having it can make it look like already adopting the cryptocurrency. The banks are already playing along with digital currency, so it may not be difficult to adopt.

[pixie85]

They are institutions that use fiat money: centralized traditional currencies.

They can't go from this to decentralized digital so the middle ground for them is a centralized digital currency that has some properties of crypto and still works like fiat just faster and more automated.

It's not a threat to Bitcoin but it might be a threat to XRP or Libra.

[shinratensei_]

Is it a threat to bitcoin?

It's not and CBDC will bring a good impact for bitcoin as the institutional investors will be having a convenient way for them all to buy crypto. CBDC has become a solution for the development that is happening in financial technology in a centralized entity like a central bank.

The central bank didn't wanna leave behind the fast development that is happening in the crypto and blockchain. I saw that there are so many people who have started to adopt crypto. Crypto can be a threat to central the bank as it can make its service becomes obsolete. The bank in a hurry to follow the development in crypto especially to create its own digital currency.

[Twinkledoe]

Is it a threat to bitcoin?

It's not and CBDC will bring a good impact for bitcoin as the institutional investors will be having a convenient way for them all to buy crypto. CBDC has become a solution for the development that is happening in financial technology in a centralized entity like a central bank.

The central bank didn't wanna leave behind the fast development that is happening in the crypto and blockchain. I saw that there are so many people who have started to adopt crypto. Crypto can be a threat to central the bank as it can make its service becomes obsolete. The bank in a hurry to follow the development in crypto especially to create its own digital currency.

I believe the OP is really new with crypto. Central Banks creating their own currencies are not a threat to bitcoin. I believe it is the opposite. Once these users find out the benefits of using crypto via the usage of CBDC, then I guess we will see adoption here. They can compare the pros and cons of bitcoin and CBDC, and choose what is best for their needs, in terms of control, privacy and other things.

[TravelMug]

Why do you think Central banks around the world are rushing to develop their own digital currencies? Is it a threat to bitcoin?

I don't think it will be a big threat to bitcoin, on the contrary, it might help crypto in general as it might wake up the curiosity of the masses and peak at what bitcoin is. They are developing their won digital currencies for their own used only, meaning it won't be a public ledger.

The threat is that when central banks around the world look at bitcoin as a tool by criminals, hence the hard line stance. But it seems that they have accepted the fact, and what they are doing is just putting some regulatory framework. So I think this is good as it gets, we meet them in the middle ground.

[Wexnident]

Any source on the "rushing" part? Since honestly, they had the ability to develop it even a few years ago already imo, just that implementation would be the hard part since you know, not everyone has access to tech which is basically the medium when using digital currencies. And if that were the case, I'd guess their mindset was why purposely develop something only a select few could take advantage of right?

As for being a threat, why even? I mean, is the JP yen threatening the USD? Are Euros threatening USD? Not really no? It's not like there's some sort of competition between currencies, at least from what I know.