Central banks around the world want to get into digital currencies

[conected]

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

If that happens then surely Bitcoin and other cryptos that are currently very high in price could return to like in 2018. But seeing this, it is not that easy for governments around the world to jointly ban and confiscate their people's Bitcoin and force to use a centralized one.  Although India has taken that policy in advance.  The US and many other countries are already open to developing technology.  They also need a competitor that is as equal as Bitcoin, does it already exist?

- The government has no evidence and no clue to consider the amount of Bitcoin are flooding the market, as an investor, maybe we all hid our bitcoins very well, even when the government investigated them, the results they got were nothing. In addition, bitcoin or stocks or many other forms of investment, where to invest is freedom and based on each person's preferences, binding is meaningless when things don't violate the law and money is in our possession, we have the right to decide, I would be interested in investing in a government or bank digital currency only if they understand this principle of equality and freedom.

[uneng]

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

If that happens then surely Bitcoin and other cryptos that are currently very high in price could return to like in 2018. But seeing this, it is not that easy for governments around the world to jointly ban and confiscate their people's Bitcoin and force to use a centralized one.  Although India has taken that policy in advance.  The US and many other countries are already open to developing technology.

As I was in doubt about this matter I sent a ticket to a national exchange which I'm customer asking if the government could create a law confiscating bitcoins, then the exchange just told me: well, we can't predict what the government will do.

Again I asked them in a hypothetical scenario where the government made a rule like this to confiscate bitcoins, how would the exchange act regards this matter, and they just told me to keep in the platform only bitcoins I use for trading activity and to withdraw the rest of my coins to a safe wallet. That was their recommendation.

After reading the two replies they sent me, a red sign lighted in my head...

They also need a competitor that is as equal as Bitcoin, does it already exist?

There is no equal competitor to bitcoin, that is why there is a good chance governments are going to use authoritarianism to enforce their digital currencies.
Because through free will very few people would want to adopt them instead of bitcoin.

[Theones]

Banks can go for their own digital currencies but they can't be crypto like bitcoin. since all of those are backed by banks and can easily be manipulated. These digital currencies are just like digital fiat which is already in circulation.

[TheGreatPython]

As I was in doubt about this matter I sent a ticket to a national exchange which I'm customer asking if the government could create a law confiscating bitcoins, then the exchange just told me: well, we can't predict what the government will do.

Again I asked them in a hypothetical scenario where the government made a rule like this to confiscate bitcoins, how would the exchange act regards this matter, and they just told me to keep in the platform only bitcoins I use for trading activity and to withdraw the rest of my coins to a safe wallet. That was their recommendation.

After reading the two replies they sent me, a red sign lighted in my head...

That's a good answer, I think governments can't take your coins from your wallet, but they can take it from exchanges. Think about it, if you are dealing with some place that deals with the government, there is always a chance that they can reach it. All they have to do is send a mail about what needs to be done, and if they send one that says "all local exchanges will have to deliver all the coins on their possession to government or it will be punishable by jail" and then what are you expecting these exchanges to do? They will of course deliver and give all the money to those governments.

This is why I think you should keep your coins in a secret hardware wallet, that way you could hide it from everyone. Of course you may want to trade or buy or even have a bit of money there, but do not keep all of it there unless you are using them, if you are not using it, just put it on a hardware wallet.

[bittick]

Banks can go for their own digital currencies but they can't be crypto like bitcoin. since all of those are backed by banks and can easily be manipulated. These digital currencies are just like digital fiat which is already in circulation.

It's more or less stablecoin but coming from central bank, even though they usually name it as CBDC which stands for Central Bank Digital Currency but it's just same thing.
Won't be really surprised if the whole crypto market don't get hyped up when these central banks released their own version of coin since it's like a copycay the existing stablecoins.

[lixer]

In recent times I read an Swiss central bank is going to own bitcoins and that must be a a really good news, while they are doing this, some dumb central banks are busy looking for ways that they are going to ban Bitcoin, which doesn’t even work out since a lot of exchanges and traders will quickly move to decentralization once they place that ban, which means that the central would no longer get taxes from these exchanges, and even employees of the exchanges in those countries will lose their job which is bad for their economy.

Swiss central bank did a good thing by embracing cryptocurrency which might be turning as a trend setting for other counties to follow in near future .

[oHnK]

As I was in doubt about this matter I sent a ticket to a national exchange which I'm customer asking if the government could create a law confiscating bitcoins, then the exchange just told me: well, we can't predict what the government will do.

Again I asked them in a hypothetical scenario where the government made a rule like this to confiscate bitcoins, how would the exchange act regards this matter, and they just told me to keep in the platform only bitcoins I use for trading activity and to withdraw the rest of my coins to a safe wallet. That was their recommendation.

After reading the two replies they sent me, a red sign lighted in my head...

That's a good answer, I think governments can't take your coins from your wallet, but they can take it from exchanges. Think about it, if you are dealing with some place that deals with the government, there is always a chance that they can reach it. All they have to do is send a mail about what needs to be done, and if they send one that says "all local exchanges will have to deliver all the coins on their possession to government or it will be punishable by jail" and then what are you expecting these exchanges to do? They will of course deliver and give all the money to those governments.

This is why I think you should keep your coins in a secret hardware wallet, that way you could hide it from everyone. Of course you may want to trade or buy or even have a bit of money there, but do not keep all of it there unless you are using them, if you are not using it, just put it on a hardware wallet.

Indeed, not all of the total Bitcoin in circulation can be confiscated by the government if this program continues.  but unfortunately, other forms of refusal still exist, for example all trading sites are frozen by the government so that their very fast movements have to be crippled because they do not have a permit.  Bitcoin users will return to like p2p so that all transactions are not detected by the government.  This is the worst picture of the government if it legalizes Bitcoin and replaces it with CBDC.  But I admit CBDC will not be equivalent to Bitcoin even though the direct government makes it.

[wxa7115]

They are trying to deceive people that is why they are doing this, we know that we have no need for those coins at all but since governments have realized they cannot kill bitcoin then they are going the next best thing, they are trying to put imitations out there and then claim their coins are better than bitcoin, something similar to what we see in the altcoin market with the difference those coins are backed by central banks.

The plan is simple they will try to get people to adopt their coins instead of bitcoin and when we add that a coin owned by a government can be even more oppressive than the fiat system we have in place then it is easy to understand their motivations, but from our point of view it does not make sense to adopt those coins, but that is us, people with a decent amount of knowledge about the economy and bitcoin, but the rest of the people are not like us, so I expect in the future those coins to have decent success if they keep up the charade.

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

There is no doubt in my mind that something like that is coming, it seems that people forget that during the Great Depression the US government confiscated the gold that was in private hands, there were many people that disobeyed the order and were able to keep their gold and get great profits thanks to it and while there is no doubt that gold is easier to confiscate than bitcoin, how many people are actually holding their bitcoin in wallets only they control?

It seems to me that a great deal of people are storing their coins in exchanges and if at some point a law like that is passed then they're going to lose all their bitcoin, they will be incredibly mad about it but at that point there is nothing to be done, this is why if you're going to use exchanges you need to use them for what they are for, trade there and then immediately get your coins out of there.

[Quidat]

There is a difference between digital currency and cryptocurrency...
but we are on the way to mass adoption of both. Several countries are already planning to circulate their own cryptocurrencies and it is true that China is currently the lead in developing its own digital currencies and cryptocurrencies.

With different countries planning on developing their own cryptocurrencies now, what will that look like in the future? I am just thinking about how Government regulate the Fiat currency, Is this the same way they will regulate their various cryptocurrency? will the price of that crypto be this volatile like what we have now which makes investors make huge profits? or will those cryptocurrencies just be more like the stable coins that we currently have now? I guess time will tell how all this will pan out considering that the idea behind crypto was decentralization.

Just still the same with fiat, if they do make out  their own coins then expect that it would be similarly be heavily centralized and i do believe that there are already some digital currencies
that had been made just like with hat Digital Yuan in China. Then what you can expect with those? Those are just simply fiat on digital manner but doesnt really make any difference
or something new that can be offered.Nothing beats out cryptocurrencies when it comes to decentralized and totally been transparent and these are the main
reasons on why people cant really just turned their back because they do know the importance of these things.

[nicecrypto]

They are trying to deceive people that is why they are doing this, we know that we have no need for those coins at all but since governments have realized they cannot kill bitcoin then they are going the next best thing, they are trying to put imitations out there and then claim their coins are better than bitcoin, something similar to what we see in the altcoin market with the difference those coins are backed by central banks.

The plan is simple they will try to get people to adopt their coins instead of bitcoin and when we add that a coin owned by a government can be even more oppressive than the fiat system we have in place then it is easy to understand their motivations, but from our point of view it does not make sense to adopt those coins, but that is us, people with a decent amount of knowledge about the economy and bitcoin, but the rest of the people are not like us, so I expect in the future those coins to have decent success if they keep up the charade.

The worse part if that they can force people to use only their centralized digital currencies, forbidding bitcoin and other decentralized crypto currencies. What I most fear is a bitcoin confiscation ordered by authoritarian governments towards btcs held in centralized exchanges. If something like this happened, I believe exchanges would deliver all the coins to governments without chances of reverting the decision.

There is no doubt in my mind that something like that is coming, it seems that people forget that during the Great Depression the US government confiscated the gold that was in private hands, there were many people that disobeyed the order and were able to keep their gold and get great profits thanks to it and while there is no doubt that gold is easier to confiscate than bitcoin, how many people are actually holding their bitcoin in wallets only they control?

It seems to me that a great deal of people are storing their coins in exchanges and if at some point a law like that is passed then they're going to lose all their bitcoin, they will be incredibly mad about it but at that point there is nothing to be done, this is why if you're going to use exchanges you need to use them for what they are for, trade there and then immediately get your coins out of there.

I also think it depends on the number or quantity of bitcoin that an investor have that might make them to hodl them in an exchange, to me that is. If I have a lot or some reasonable amount of Bitcoin, I wouldn't hodl those in an exchange but investors should only hodl some tradable amount of such assets in exchange just for trading in order to avoid such kind of losses.

[Kong Hey Pakboy]

With different countries planning on developing their own cryptocurrencies now, what will that look like in the future? I am just thinking about how Government regulate the Fiat currency, Is this the same way they will regulate their various cryptocurrency? will the price of that crypto be this volatile like what we have now which makes investors make huge profits? or will those cryptocurrencies just be more like the stable coins that we currently have now? I guess time will tell how all this will pan out considering that the idea behind crypto was decentralization.

It will be the same thing, I mean digital currencies are just a glorified fiat currency, they are just trying to reduce the printing of their legal tender but their digital currency is going to have the same purchasing power as their physical fiat. The only advantage of digital currency is that they are backed by the government and I think that's about it.

[Grafen]

What Central Bank is doing is digitizing Fiat, not creating cryptocurrency. This means that they still have full control over the circulation of the country's digital currency, so this is centralized.
This is also what is being implemented in my country to digitize the local currency because currently transactions are done digitally and online, the government felt the need to do this.

Are central banks so greedy that they don't want to make their own blockchain, but simply tokenize fiat into digital currencies?

[wxa7115]

There is no doubt in my mind that something like that is coming, it seems that people forget that during the Great Depression the US government confiscated the gold that was in private hands, there were many people that disobeyed the order and were able to keep their gold and get great profits thanks to it and while there is no doubt that gold is easier to confiscate than bitcoin, how many people are actually holding their bitcoin in wallets only they control?

It seems to me that a great deal of people are storing their coins in exchanges and if at some point a law like that is passed then they're going to lose all their bitcoin, they will be incredibly mad about it but at that point there is nothing to be done, this is why if you're going to use exchanges you need to use them for what they are for, trade there and then immediately get your coins out of there.

I also think it depends on the number or quantity of bitcoin that an investor have that might make them to hodl them in an exchange, to me that is. If I have a lot or some reasonable amount of Bitcoin, I wouldn't hodl those in an exchange but investors should only hodl some tradable amount of such assets in exchange just for trading in order to avoid such kind of losses.

I would not have any problem with someone that keeps a small amount of money in an exchange because he wants to trade or he is waiting for his orders to be filled, that is completely normal, the problem comes when people use the exchange wallet as their main wallet because they think it is more practical.

But then the exchange gets hacked or they close their account and they finally realize they never had coins to begin with, and I think there is the risk that governments will begin to confiscate the wealth of their citizens to pay their debts, and bitcoin is definitely an asset they will like to have at any cost and exchanges are an easy target for them to get all of those coins.

[wxxyrqa]

I would not have any problem with someone that keeps a small amount of money in an exchange because he wants to trade or he is waiting for his orders to be filled, that is completely normal, the problem comes when people use the exchange wallet as their main wallet because they think it is more practical.

But then the exchange gets hacked or they close their account and they finally realize they never had coins to begin with, and I think there is the risk that governments will begin to confiscate the wealth of their citizens to pay their debts, and bitcoin is definitely an asset they will like to have at any cost and exchanges are an easy target for them to get all of those coins.

You said everything very correctly. Governments can pose a very big danger not only for cryptocurrency users, but also for large cryptocurrency companies. This is another example of why it is impossible to keep large amounts of cryptocurrency funds on the accounts of cryptocurrency exchanges. I believe that all cryptocurrencies should be stored in their wallets in complete safety.

[adzino]

They are just going to implement the blockchain tech over here. A centralized coin, controlled by the government, fully regulated and nothing different from the current electronic transaction system (cashless payment system). They will be the same as the fiat currency, with the only difference being that the government can track each and every coin without much effort. Keeping their people under more surveillance.
As far as I have heard, China is already done with their digital currency. They are supposed to be launching anytime soon.

[sapnu]

Other than going with the trend, central banks are obviously doing shady stuffs that involves crypto or making their own digital currencies. It seems like they trying to outrun the current successful cryptocurrencies and at the same time, take advantage of the fact that the government is behind them. Even though they have the advantage when it comes to wide usage and legal transactions, I don't think they would succeed on taking over the cryptocurrencies place. People wants decentralization and freedom with their transactions, no one would ever want to stay on the grip of the government who abuses their power most of the time.

[DrBeer]

To begin with, I'm not sure that banks are just shaking from fear from cryptocurrencies. While banks control fiat and national currencies, and the means of payment in the country is the national currency (+ possibly dollar / euro), they have nothing to fear. And this situation is unlikely to ever change.
Now about digital currencies. For starters - I hope everyone understands the difference between cryptocurrencies and government digital currencies? So - national digital currencies - yes, this is the future! Many countries are preparing, some have gone further, but everyone will go in this direction. This is logical - reducing the cost of servicing fiat money. So that you understand - the costs of servicing cash are huge! Secondly, security and control. As you understand, it is extremely difficult to control cash, digital currencies are already easier, and using certain technologies, the level of control can approach 100%. Primitive theft of money will turn into a useless event, fraud and manipulation - most likely too - an illegitimate operation and tokens are instantly marked and frozen for movement within the system!
In a word, crypto technologies will take digital fiat money to the next level. Cryptocurrency will not kill fiat, but will only strengthen it and help transform it into a better "product"

[nakamura12]

The reason why banks are into cryptocurrency or let's say government are into cryptocurrency is because they want to get money the people in their country by asking tax when you use cryptocurrency like they have their own exchange then banks can get a tax from every trade that a person made. Even if the cryptocurrency is not centralized but they can still have a site that is centralize.

[acquafredda]

If they do not issue these new forms of currencies on public and decentralized protocols this is probably going to be the next big robbery against humanity. People should not accept these new forms of keeping old control with newer tools. I am afraid that is what is going to happen and digital currency will make people susceptible to be de-monetized at will (are you against your government? I am going to close your account!)
Bitcoin is some form of insurance against this, do not forget it.

[AndySt]

To begin with, I'm not sure that banks are just shaking from fear from cryptocurrencies. While banks control fiat and national currencies, and the means of payment in the country is the national currency (+ possibly dollar / euro), they have nothing to fear. And this situation is unlikely to ever change.
Now about digital currencies. For starters - I hope everyone understands the difference between cryptocurrencies and government digital currencies? So - national digital currencies - yes, this is the future! Many countries are preparing, some have gone further, but everyone will go in this direction. This is logical - reducing the cost of servicing fiat money. So that you understand - the costs of servicing cash are huge! Secondly, security and control. As you understand, it is extremely difficult to control cash, digital currencies are already easier, and using certain technologies, the level of control can approach 100%. Primitive theft of money will turn into a useless event, fraud and manipulation - most likely too - an illegitimate operation and tokens are instantly marked and frozen for movement within the system!
In a word, crypto technologies will take digital fiat money to the next level. Cryptocurrency will not kill fiat, but will only strengthen it and help transform it into a better "product"

Undoubtedly, the future is in digital currencies, and all these government efforts will definitely lead to a real result. But it is this total control over the turnover of cash that is a little frightening, because economic activity is not expressed in black and white colors, and the line between fraud and normal economic activity is also not always strictly defined. There may be a situation where a small ordinary person will be unprotected in the face of a ruthless state machine in the person of its representatives. It can happen all the time now, and it's even stronger here.