Can Bitcoins kill Central Banks?

[La56]

Bitcoin is a virtual currency that uses peer-to-peer technology to operate with no central authority or institutions like Banks. By its very own definition, Bitcoin sounds well positioned to kill central banks. Could it? This topic of central banks and their potential replacements are complex with a lot of valid arguments supporting it and against it.
The digital era may be against central banks, but it all not that easy as it has a strong foundation and six centuries of history. The first central banks, often helped nations in funding wars and other initiatives that are supported by the government. The British redefined the concept of central banking in 1844 with a legislative effort that laid the foundation for an institution that had the power to issue currency.
With the idea of a bank with that level of power could help stabilize the financial system in times of crisis and war. It is a concept that many experts agree helped stave off disaster during the 2007–2008 financial crisis and the Great Recession. Presently, modern central banks play a variety of roles like maintaining full employment and stables prices, ensuring the safety and soundness of the nation’s banking and financial system, stabilizing the financial system in times of crisis and helping oversee the nation’s payment systems.
Currently, central banks are the predominant structure nations use to manage their economies. They have a long history and monopoly power. Hence they are not going to give up that power without an intense fight. While Bitcoin and other digital currencies have created great interest, their adoption rates are very minimal and obviously, the government support for them is almost nonexistent.
Unless governments recognize and label Bitcoin as a real-time currency, Bitcoin has little less hope of killing off central banks any time soon. Having said that, central banks across the globe are very keenly watching and understanding what Bitcoin is doing. As we all know that metal coins are expensive to manufacture and most of the time their face value is kind of cheaper than their manufacturing cost, we shouldn’t be surprised if central banks one day issues digital currencies under their name.
That is the exact reason why they should adopt it sooner rather than later. The earlier banks adapt and adopt some or the other form of Blockchain the more relevant they will remain. Bitcoin has established a lot of partnerships with FinTech firms I order to develop the applications of Blockchains in their capital markets. That could explain why big banks have been eagerly warming up to Bitcoin and other major cryptocurrencies which use Blockchain.

[DrBeer]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

[Jacksoon999]

Bitcoin is a virtual currency that uses peer-to-peer technology to operate with no central authority or institutions like Banks. By its very own definition, Bitcoin sounds well positioned to kill central banks. Could it? This topic of central banks and their potential replacements are complex with a lot of valid arguments supporting it and against it.
The digital era may be against central banks, but it all not that easy as it has a strong foundation and six centuries of history. The first central banks, often helped nations in funding wars and other initiatives that are supported by the government. The British redefined the concept of central banking in 1844 with a legislative effort that laid the foundation for an institution that had the power to issue currency.
With the idea of a bank with that level of power could help stabilize the financial system in times of crisis and war.In the future it will be seen that Bitcoin is destroying the central bank...

[Ucy]

I guess a Central Bank is part of government... meaning it has to be subjected to Just laws/principles that binds a Nation. As far as I can tell, no bank on earth has the right to stop people from accepting payment in any currency they choose to get paid in, except maybe the people are somehow enslaved to the bank. Free people should have the right to accept payments in any currency as long as that is helping them and their societies.
I suspect the banks feel they have the right to rule and control people at the expense of the people's laws, probably due to people's indebtedness to them. Well, I believe there are lot of people who don't own them a penny... So they need to be careful how they treat such people

[Mauser]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

This is the most plausible answer. At the moment governments hold all the power of the people. We are not ready for a regime change. But one day in the future this could happen. If enough people demand a change that the politicians need to react. While central banks who print money each year worked for many years, it doesn't mean it will be going to stay like this. We just need to work together to change the system.

[elda34b]

Why would government give up a system where they can control and influence the economics on their country? That will be plain stupid. On top of that, the goal of Bitcoin is not to kill anything, but simply provide a way for people to transact digitally without relying on a centralized entity. It won't solve the problem of GDP, microeconomics, etc.

[youdacapt]

There is a repetition about bitcoin killing banks conversation, but it is not realistic at all. I will give you an illustration and i want you to find your answer by yourself.
You need to do a personal survey by yourself, how many locals in your country, state, or city you live in would trade their commodities in exchange for bitcoin with you ? Now you as a trader, or an investor or a bounty hunter or ambassador; when you get your profits from these crypto activities , do you keep them in your wallet to spend? or you convert them to your local currencies to spend ?

I believe you have your answer, bitcoin cannot kill central banks; it can only co exist with fiats currency to make the financial market, world a very better place.

[ultrloa]

The answer is no since first no one regulate bitcoin so there's no law can be implied to overcome the fiat system while government can easily erase out bitcoin in their financial system if they want ban the usage of it on their country, also this thoughts is so impossible so maybe lets not speculate about that since bitcoin needs fiat TBH. Maybe for now just use it according on how you can gain with it and don't listen to other that it will conquer the system since this is close to impossible for now.

[zanezane]

Why would government give up a system where they can control and influence the economics on their country? That will be plain stupid. On top of that, the goal of Bitcoin is not to kill anything, but simply provide a way for people to transact digitally without relying on a centralized entity. It won't solve the problem of GDP, microeconomics, etc.

Exactly, why would they go that route knowing that their power will be useless in a decentralized fashion. I also have to add that it will take years to really uproot the established system and bitcoin has a lot of things to fill in.

[ninkdwi]

for what reason is Bitcoin killing banks? I think it doesn't need to be enforced, and it can't be as if it is a murderer. let bitcoin grow with all its systems and the bank will be the balance so that the resilience of the value of Bitcoin remains a top priority for bitcoiners. we as bitcoin holders don't have to be aggressive.

[Darker45]

No, it won't. Central banks will remain. Bitcoin cannot take over any country's central bank's monetary and financial functions. A central bank's role in a country is more than just issuing money. I'm afraid Bitcoin is not a central bank's replacement. Bitcoin may not even be fiat's complete replacement. At best, it is a major alternative from which central banks may learn a lesson or two as regards monetary development. I think Bitcoin has played a significant role in several countries' plan to shift to CBDC.

[wxa7115]

The answer is simple - no, bitcoin will not kill banks!
Why? Because governments will never allow an uncontrolled entity to replace a government-controlled, formal payment mechanism. The only thing that bitcoin, as a technology, can influence, is to push banks to use part of blockchain technologies in banking technologies.

I agree, I get that people can dream whatever scenario they may like but we need to be realistic here, the goal of bitcoin has never been to kill banks, the goal of bitcoin is just to offer a currency with a scarce supply that is permissionless, that is it, anything more than that is nothing but a dream.

Governments are never going to allow this to happen and banks instead of remaining static and accept defeat will just adapt to the new reality just as they have been doing for hundreds of years, so while a world without banks sounds like a good idea to some it is never going to happen.

[sunsilk]

We may be in the digital era but it's hard to be seen that bitcoin will kill the central banks. The government won't allow that to happen. The central banks can give the go signal for establishments to go and adopt bitcoin.

But they'll never allow it to replace the central banks and let it control its role in a country. Central banks have vital roles which they cannot hand over to bitcoin.

[kolbalish]

No, this is inevitably not the purpose of Bitcoin. And not all countries have announced Bitcoin legal. I have explained before that banks regulate all the financial activities of a country. In that trial, the government will not expect Bitcoin to be turned off. And banks are bound to a government in many paths, but since Bitcoin is virtual, it doesn't appear to be stricken. But Bitcoin will not be eligible to kill the bank.

[Ibrahim60]

Though bitcoin have so much popularity among people around the world and a huge number of people invest their money in Bitcoin but Bitcoin can never kill Central Banks. This is not possible. Because everyone believe banks because bank is centralized and Provide fiat. On the other hand bitcoin is a virtual coin. Not all the people in the world depends upon bitcoin. But most of the people like 80/90% people depends upon banks because they keep their money from banks. Bank give people loan. On the other hand bitcoin have no facility like loan. So bitcoin can't kill banks.

[YOSHIE]

Honestly, I didn't have time to read the entire content of your topic, but I only aim for your question in the topic title.

For your answer, 99% of the answers are below.
Can Bitcoin Kill Central Banks?

[dothebeats]

That would be nigh impossible. Bitcoin does not and will not fulfill the roles of central banks. They are still vital for controlling the economy and stimulating it whether we like it or not. Also, why would the governments let that happen anyway? It would be hard for them to control the economy, the inflows and outflows of money, and everything in between if central banks aren't existing.

[el kaka22]

Why though? Why would bitcoin kill central banks? What would benefit bitcoin, and what would the society benefit from no more central banks? Do you really know what they are suppose to do and what they are there for?

Central banks are the places that take a look at a nations economy and make decisions based on that, and if you remove it all together it becomes the wild west and outlaws and there won't be anything that decides on what's going to happen, I am not saying that would be bad compared to now because I do not know, maybe a liberal economy without a central bank is the solution to all the economical problems we have but I can guarantee you the first few decades will be horrible because liberal economies allow rich to do whatever they want so instead of the Central bank it would be people like Elon or Jeff that decides the economy, I rather not deal with that.

[irsykes]

Maybe it is better if bitcoin stay like this, for investment purpose or maybe what people use beside to replace fiat. Because Central Banks itself is really big power and can control anything, me who amateur maybe only think don't let they make bitcoin banned and we just not disrupt them if not any problem happened to bitcoin itself.

[adzino]

It is not going to happen. It's never going to happen (unless a huge revolution takes place after few decades and freedom is actually a thing). Think about it. A decentralized coin taking over the central bank. A coin that government has no control over. Can you imagine that? Nope, you can't. Because the government like to keep power and control its citizen. And with the help of central banks they are even able to indirectly control bitcoin. This has both bad and good bad sides. So no, bitcoin won't kill central banks, but maybe a centralized coin controlled by the government by change how a central bank works.