2021-06-23 Forbes - Say Goodbye To Bitcoin And Say Hello To The Digital Dollar

[acquafredda]

The Senate Banking committee's hearing on the digital dollar two weeks ago was not only a public exploration and introduction to the concept a central bank-backed digital currency, the hearing was also used as a platform to publicly assassinate the viability of the private ("bogus" in the words of Senator Warren) cryptocurrency market (bitcoin, stablecoins, etc.).

https://www.forbes.com/sites/bryanrich/2021/06/23/say-goodbye-to-bitcoin-and-say-hello-to-the-digital-dollar/

Great! The digital dollar, and with it all the central bank digital currencies, are the new "blockchain" sneak oil, if you know what I mean!
While the wise man watches and observes the moon, the fool continues to watch the finger.
That is good, they are still missing the point. In any case, digital dollar, stablecoin etc. are just replacements for old currencies.
Bitcoin is a revolutionary protocol that cannot fear this thin and sterile challenge.
Onward and upward.

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[Oceat]

Let's see how many large institutional investors would be going to support that since that digital currency is just like XRP. They clearly missed the point how blockchain and Bitcoin works. I think they were just trying to make the progress faster without even considering to further increase their knowledge about how blockchain and Bitcoin works.

Talking about stable coins is just the same to these stable coins we have had ever since Bitcoin exist.

[DooMAD]

I might be alone on this one, but I'm actually hoping a digital dollar (if it happens) does result in the demise of corporate stablecoins.  People sometimes compare fiat to IOUs.  But at least they're the original IOU.  Not a secondary IOU that supposedly represents the primary one, but likely isn't backed 1:1, so you don't actually know whether your secondary IOU represents anything useful at all.

If it weren't for laziness and ignorance, stablecoins would never have gained traction to begin with.  The sooner they die, the better. 

[NeuroticFish]

The sooner they die, the better. 

Actually I'm not convinced that CB IOUs will be better than the current stable coins. The CBDCs may have "lovely" features like seizing the money of your wallet, features the current stable coins most probably don't have.
By no mean this would mean that current stablecoins are any good, especially as they are most probably not properly backed.

I'm curious how many will "invest" into digital dollar LOL

[jossiel]

Nothing actually changes in value.

It's still the same and people who are looking positively on it, well. Yeah, you have digital dollar and China got the digital transactions before they even implement this digital dollar.

Nice Forbes! invest now in your digital dollar. 

[mindrust]

The Senate Banking committee's hearing on the digital dollar two weeks ago was not only a public exploration and introduction to the concept a central bank-backed digital currency, the hearing was also used as a platform to publicly assassinate the viability of the private ("bogus" in the words of Senator Warren) cryptocurrency market (bitcoin, stablecoins, etc.).

https://www.forbes.com/sites/bryanrich/2021/06/23/say-goodbye-to-bitcoin-and-say-hello-to-the-digital-dollar/

Great! The digital dollar, and with it all the central bank digital currencies, are the new "blockchain" sneak oil, if you know what I mean!
While the wise man watches and observes the moon, the fool continues to watch the finger.
That is good, they are still missing the point. In any case, digital dollar, stablecoin etc. are just replacements for old currencies.
Bitcoin is a revolutionary protocol that cannot fear this thin and sterile challenge.
Onward and upward.

This was predicted by many people. I am still not so sure that they will be able get rid of bitcoin so easily but on the other hand I am thinking, maybe they are the same guys that let the tether scam happening so they can use it against bitcoin when the shit hits the fan.

We will see how it will turn out in the end, hopefully soon.

[acquafredda]

Whatever it may happen I do not care. They are missing the point and that is what I care the most since replacing our currencies with those does not change much and actually will give too much power over our wealth to them.
Bitcoin has always been here for the rescue.

[SFR10]

I really hate how they ended that article
^{- Seriously? I wonder what they see when they look in the mirror?}

Add to that, even after gaining traction, the private crypto market continues to be used primarily as a tool of corruption and speculation.

I'm curious how many will "invest" into digital dollar LOL

And I'm curious to know if there's any reason for using that so-called digital dollar?
^{- FYI, I'm not even comparing it with other cryptocurrencies; Personally, I don't see any differences to other traditional methods [some with a workaround]: e.g. Funds on my bank account [I can still transfer them to someone or pay for stuff].}

[NeuroticFish]

And I'm curious to know if there's any reason for using that so-called digital dollar?
^{- FYI, I'm not even comparing it with other cryptocurrencies; Personally, I don't see any differences to other traditional methods [some with a workaround]: e.g. Funds on my bank account [I can still transfer them to someone or pay for stuff].}

I guess that it's a competitor for USDT: to be used in arbitrage, to be used by those who don't know nor want to use LN, to be used by certain "govt approved" shops which won't accept Bitcoin, but will accept digital dollar.
And I see it also as a competitor for VISA/MC, where no 3rd party company (and its fees) is being used for in-shop payments.

So it probably has its use and this may unfortunately slow the Bitcoin adoption.

[stomachgrowls]

Whatever it may happen I do not care. They are missing the point and that is what I care the most since replacing our currencies with those does not change much and actually will give too much power over our wealth to them.
Bitcoin has always been here for the rescue.

We do all not care about those existence about digital fiat or something that they had been creating just for the sake on ending up on the same idea.

It isnt really much off different nor having the relevance since it is just all the same, nothing changes and nothing to really care about.

Crypto community wouldnt really be caring at all no matter what things they would be creating all over again.We do know the difference between
decentralized and heavily centralized. Period!

[dansus021]

Let's see how many large institutional investors would be going to support that since that digital currency is just like XRP. They clearly missed the point how blockchain and Bitcoin works. I think they were just trying to make the progress faster without even considering to further increase their knowledge about how blockchain and Bitcoin works.

Talking about stable coins is just the same to these stable coins we have had ever since Bitcoin exist.

indeed

bitcoin is not going anywhere even tho there is digital dollar digital yuan and other government digital stablecoin

since bitcoin is pioneering the blockchain and crypto industrys

[bbc.reporter]

The sooner they die, the better. 

Actually I'm not convinced that CB IOUs will be better than the current stable coins. The CBDCs may have "lovely" features like seizing the money of your wallet, features the current stable coins most probably don't have.
By no mean this would mean that current stablecoins are any good, especially as they are most probably not properly backed.

I'm curious how many will "invest" into digital dollar LOL

No one will “invest” in the digital dollar similar to no one invests in paper dollars. However, it will be used for buying, keeping and investing, trading. It will be a medium of exchange similar to how we sometimes convert cryptocoins into fiat because we need fiat.

They will promote the use of the digital dollar and it will be easy for the people to accept it and easy for the businesses to adopt it because all the banking infrastructure will be mandated to support it.

Also, while the government promotes this digital dollar, they target bitcoin and the cryptospace and reduce it into a market for risky assets where strict KYC is enforced and where only some people under a certain criteria will be allowed to invest. We need to see that we do not yet have the advantage.

[Ghepetto]

The only chance -any- CBDC has to compete with Bitcoin is to make an entity that mirrors Bitcoin's mechanics.

To do so governments and banks would have to relinquish power in order to achieve this.

They will not.

So-


Let me assume that all the CBDC's will have the same mechanics and controls that are found in the Legacy banking system.  The only one thing that needs to be said to it's creators is the following:

If you ignore reality long enough, eventually it will come back to bite you in the ass.



The question we should be asking here is what happens when all these CBDC's are created out of thin air and every creator of a CBDS (Central Bank Digital Shitcurrency) decides to use five to ten percent of these shitcoins to buy Bitcoin?  Like we have seen here, time and time again.

So please, hurry up and make your shitcoins and then use them to pump Bitcoin to ten million euro each.  I understand this is not probable, but it is not impossible.

Covid has exposed the cumulative global incapacity to identify or relay reality (of all politicians) while at the same time failing to achieve the goals they were created to achieve.  

This will be no different

[mindrust]

The only chance -any- CBDC has to compete with Bitcoin is to make an entity that mirrors Bitcoin's mechanics.

Which mechanics is that exactly? Having 10 transactions per second? I don't think they'll want to have that mate. If they want to compete, sure they'd want that but I am not sure if they'll want to compete with bitcoin.

They are probably going to have a 9999999999999999tps centralized coin instead.

[Carlton Banks]

I might be alone on this one, but I'm actually hoping a digital dollar (if it happens) does result in the demise of corporate stablecoins.  People sometimes compare fiat to IOUs.  But at least they're the original IOU.  Not a secondary IOU that supposedly represents the primary one, but likely isn't backed 1:1, so you don't actually know whether your secondary IOU represents anything useful at all.

If it weren't for laziness and ignorance, stablecoins would never have gained traction to begin with.  The sooner they die, the better.  

I disagree

to me, the backing has never been an interesting part of stablecoins, the pegging is the killer app (also assuming the network is permissionless & decentralized). Simply as a tool to trade true cryptocurrency against a less volatile token (I hesitate to use the word "asset"), corporate stablecoins do a great job.

Sure, there is considerable counterparty risk as a downside, but that exists in the world of banks and credit unions also, all the more so when you're using your access to the fiat money system to trade cryptocurrencies (banks often put a black mark against you for doing so).

tl;dr The "funds" in your bank account aren't properly funded either, these so-called professionals can't even guarantee an IOU, which is in itself a means to avoid liability for maintaining reserves of real assets. This is, of course, a professionalism of a sort: professional theft

[Ghepetto]

The only chance -any- CBDC has to compete with Bitcoin is to make an entity that mirrors Bitcoin's mechanics.

Which mechanics is that exactly? Having 10 transactions per second? I don't think they'll want to have that mate. If they want to compete, sure they'd want that but I am not sure if they'll want to compete with bitcoin.

They are probably going to have a 9999999999999999tps centralized coin instead.

Great question!

I was referring to the mechanics that reflect the vision of Bitcoin, my apologies for not being clear:

Accounts can not be frozen.
Transactions cannot be muted.
Permission is granted to all.  (unbanked solution)
There is no central point of failure.
Entities who do not trust each other can transact without being hindered in any fashion.
Etc
Etc
Etc


You may be right that they do not want to compete with Bitcoin, but I was trying to convey my thoughts regarding this article specifically.

As far as the ten transactions per second, nobody wants to pay for coffee with Bitcoin, as nobody pays for coffee with gold.  With my loose understanding of the Lightning network, this a non issue.

Personally I would not want to sacrifice exponential levels of security for more transactions per second, I can wait.  And if you look at how long it takes to deposit and clear a check on the Legacy system, this point becomes moot.

I respect your point, it makes sense, but I see it from a different perspective. 

   

[mindrust]

I was referring to the mechanics that reflect the vision of Bitcoin, my apologies for not being clear:

Accounts can not be frozen.
Transactions cannot be muted.
Permission is granted to all.  (unbanked solution)
There is no central point of failure.
Entities who do not trust each other can transact without being hindered in any fashion.

Again, you are proving my point.  No central bank would want to have these qualities.

"Accounts cannot be frozen" -> LoL

"Transactions cannot be muted." -> Omegalul

"Permission is granted to all." -> u wot?

"There is no central point of failure." -> I'll give you a hint: "Central Bank"

"Entities who do not trust each other can transact without being hindered in any fashion." -> at this point: xd

You may be right that they do not want to compete with Bitcoin, but I was trying to convey my thoughts regarding this article specifically.
As far as the ten transactions per second, nobody wants to pay for coffee with Bitcoin, as nobody pays for coffee with gold.  With my loose understanding of the Lightning network, this a non issue.
Personally I would not want to sacrifice exponential levels of security for more transactions per second, I can wait.  And if you look at how long it takes to deposit and clear a check on the Legacy system, this point becomes moot.
I respect your point, it makes sense, but I see it from a different perspective.  
  

Ok, I get your point too.  

[NeuroticFish]

No one will “invest” in the digital dollar similar to no one invests in paper dollars. However, it will be used for buying, keeping and investing, trading.

Well, you'd be surprised, but I've seen posts from people who wanted to invest in Facebook's Libra (which was also meant to be stable coin too) or even invest into USDT (although here he meant hedge, not actual investment).
And if banks will offer some pennies for the deposits in digital dollar, I expect people "invest" into this coin just to "stake" it at a bank.

tl;dr The "funds" in your bank account aren't properly funded either, these so-called professionals can't even guarantee an IOU, which is in itself a means to avoid liability for maintaining reserves of real assets. This is, of course, a professionalism of a sort: professional theft

Well said, although lately in Europe the commercial banks must deposit certain funds at the central bank in order to cover the deposits until the limit of 100k EUR/bank/person. I don't know the exact mechanics though.
I may mix things up, but I think that it was after the banks' crash (in Malta? iirc) where too many have lost their money, this thing was imposed in EU.
However, back on topic, govt (with inflation) and banks (central and commercial) do their contribution in showing a (fake!) sense of funds' safety, while they steal from everybody who afford to put aside a couple of pennies. But no wonder, when the public retirements fund is big fat Ponzi and nobody does anything against it. People seem to believe everything if it's said on a calm and reassuring voice.

[bbc.reporter]

The only chance -any- CBDC has to compete with Bitcoin is to make an entity that mirrors Bitcoin's mechanics.

To do so governments and banks would have to relinquish power in order to achieve this.

They will not.

So-


Let me assume that all the CBDC's will have the same mechanics and controls that are found in the Legacy banking system.  The only one thing that needs to be said to it's creators is the following:

If you ignore reality long enough, eventually it will come back to bite you in the ass.



The question we should be asking here is what happens when all these CBDC's are created out of thin air and every creator of a CBDS (Central Bank Digital Shitcurrency) decides to use five to ten percent of these shitcoins to buy Bitcoin?  Like we have seen here, time and time again.

So please, hurry up and make your shitcoins and then use them to pump Bitcoin to ten million euro each.  I understand this is not probable, but it is not impossible.

Covid has exposed the cumulative global incapacity to identify or relay reality (of all politicians) while at the same time failing to achieve the goals they were created to achieve.  

This will be no different

However, these CBDC will not compete with bitcoin. It will only be set up to complement the financial system we have presently. Companies will use it to pay their employees, accept it for goods and services, pay taxes, everything that can be done with fiat will also can be done with CBDC.

@NeuroticFish. I reckon people might convert paper money to CBDC to use as a medium of exchange if it is more convenient. Also, they might also prefer to accept it as payment from work. As a speculative investment bitcoin and other cryptocoins will always be the best because of its volatility.

[buwaytress]

I might be alone on this one, but I'm actually hoping a digital dollar (if it happens) does result in the demise of corporate stablecoins.  People sometimes compare fiat to IOUs.  But at least they're the original IOU.  Not a secondary IOU that supposedly represents the primary one, but likely isn't backed 1:1, so you don't actually know whether your secondary IOU represents anything useful at all.

If it weren't for laziness and ignorance, stablecoins would never have gained traction to begin with.  The sooner they die, the better. 

Likely? If banks in the US are in an indefinite period of doing away with fractional reserves, I really can't see why they'd want need or want to back any of those digital IOUs with anything more than the obligatory inspection pass.

At least now, it'll be backed by whatever certainties the world's largest (as yet) superpower can offer. But when the usurper in the East flexes for real, I wonder what happens.

P.S. You're not alone.