Economics

[tabas]

actually does not have much effect on the bitcoin ecosystem, because basically people's views about bitcoin have started to change from a means of payment to a store of value asset. but the impact of currency digitization is to create a better crypto ecosystem. this will trigger regulations that make crypto clearer and possibly fully legalized like in el salvador. so broadly speaking it will be good in the long run.

Well, there might not be that much effect but I think there will be another source that shall add to the market cap of bitcoin. We can imagine that after USDT and other stable coins, there goes the cbdc's that will also be helping bitcoin to push its price to the top.
And that's because there will be an added cap to the current cap that bitcoin has. Those cbdc's are already under the regulation but even if they'll be hard on it, they can't regulate bitocin.

[Jating]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

You forget about China as well and Russia who had their CBCD already.

It doesn't have any effect to the bitcoin/crypto market because obviously it is very different. These CBCD's are in the control of the government so it's fully centralised. These government are just taking advantage of the situation and uses the blockchain technology for their advantage. So this is like the local fiat, only this time it is in digital form. And you can't even trade it on exchanges so that's another main difference.

[doomloop]

How these currencies will affect the bitcoin/crypto ecosystem?

We can rephrase the question to 'how will fiat affect bitcoin and crypto ecosystem'. All I know is that the reason government created nation's digital currencies has nothing to do with bitcoin and cryptocurrencies but they are means for us to spend locally. Only what I know that will be happening is that government will be controlling their fiat and digital currencies but decentralized currencies like bitcoin is the real asset someone should have. The connection bitcoin has with the government currencies is that bitcoin value is increasing when compared.

Yeah, someone already suggested this but I think the reason why he title it like that is because he is in the economics board and I think money is also related to economics?

And lastly to turn heads for the reader but moving on I think there is an effect if countries started to create their own version of digital currencies because it is more legal and they can market it easily and maybe they are also easier to use than a regular cryptocurrency but die hard crypto supporters are still there. They wont leave crypto just for this because in the end this digital currencies created by the governments are still under their control. Only the appearance have changed, nothing more.

[Cookdata]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

There will be no impact on bitcoin, it will continue to serve the same purpose it has for the previous 60 years (decrease in purchasing power) with all the massive printing.
I was so determined to see how my country's digital currency (Enaira) would go when at the first launch, the download and ratings were low and was taken down but came back again and after some weeks, and today, it's one of the failed projects my country has launched last year. The low rating, review, and dissatisfaction were so much.

[Hydrogen]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

It all depends upon how much trust people retain in traditional financial institutions and how well central banks are able to incentivize the rapid development and adoption of their assets.

Initially, they could incentivize CBDCs offering excellent options and terms to the public. Then later those options could dry up, if they succeeded in achieving a monopoly. Which could in turn spawn more alternative assets and currencies in something resembling a financial arms race. That would appear to be the normalized trend we've witnessed throughout history.

Who do people believe in, and who do they trust? Both are great questions I would not mind knowing the answer to.

On one hand, I think public distrust of the state could be at an all time high due to corona lockdowns and general discontent. On the other hand people can certainly have short term memories at times. It is possible most have already forgotten events of the past 2 years? Its hard to say which direction the wind is blowing, many aren't being as vocal about their thoughts as they have in the past.

I get the impression many do not remember the 2008 financial crisis. Perhaps the COVID crisis will be the same? Or perhaps it will be different?

[Rockstarguy]

Even if every country have their own digital currency it doesn't change anything and it can't be the same as bitcoin because bitcoin is fully decentralised and can't be manipulated by anyone.  If every country decide to have their digital currency am not sure if the currency will be volatile in nature. I have been following the nigeria government who launched a kind of digital currency call E-naira , since then this currency was launched I have not heard anything concerning it, even if one decides to get some E-naira I don't think if it will add any value by getting some profit. Governments that are trying to make a digital currency are doing it for selfish reasons.

[Anguwa]

Almost all countries that will have their own digital currency, I believe, will have some regulatory agency, such as banks and other financial organizations, that will operate as a task force to oversee digital currency transactions. However, Bitcoin transactions are decentralized; there is no third-party, no middleman, and no government or financial institution can regulate them.

[_act_]

We can imagine that after USDT and other stable coins, there goes the cbdc's that will also be helping bitcoin to push its price to the top.
And that's because there will be an added cap to the current cap that bitcoin has.

CBDCs will not help in any way to push Bitcoin price to the top, they are just the same as fiat and nothing more than fiat. The price of Bitcoin is used to compare the price of fiat, fiat do devalue, also demand of Bitcoin increasing is not because of CBDCs or Fiat or stable coin, it is because people see the value in Bitcoin and buy it.

[bittraffic]

It all depends how they will be implementing these currencies.

If the governments "outlaw" all other Crypto currencies to force people to use their digital currency, then it will have a bad influence on the adoption of Bitcoin.

If the governments define Bitcoin as a "Commodity" and not as legal tender, then obviously Bitcoin adoption as a payment system will suffer as a result. (This is how most governments are currently protecting the Fiat currencies) 

I want Bitcoin and these digital currencies to have a level playing field, to see which one will win in the end. (Centralized or Decentralized) 

Outlawing cryptocurrencies will probably be impossible this time because of the countries adopting BTC. There are lots of them already which even the politicians in the US are already protecting and proposing legislation for the use of BTC. Because of these, the governments will just be forced to regulate cryptocurrencies which is what they are currently been doing. The effect is the trust to cryptocurrency or BTC kept going up.

I'm sure the implementation of government back digital currencies and the laws being created from then on will just be to make the transactions of market participants be transparent in the CBDC platform.

[Darker45]

There's not much effect, if at all. These central bank-issued currencies, after all, are not in any way similar to Bitcoin except their being digital currencies.

And this is not really a huge transformation. As a matter of fact, there's not much difference between the current status of fiat and the new digital currencies. Even before this idea of a CBDC is thought of, fiat is already developing toward digitalization.

But if there's a good effect of this, it would be on the side of governments. If all of fiat is issued digitally and on a transparent blockchain, then public spending and budget allocation is easily monitored. 

[Odusko]

Many countries are busy developing their own central bank digital currency but in the latest development, International Monetary Fund made a statement concerning the stability and sustainability of the CBDC which is a big drawback to the government's quest to create a contender for cryptocurrency through the CBDC.

[gantez]

But if there's a good effect of this, it would be on the side of governments. If all of fiat is issued digitally and on a transparent blockchain, then public spending and budget allocation is easily monitored. 

I think transparent spending by the government in fiat currency can help reduction of inflation in this time of high inflation they have to avoid certain recurrent expenditure. Budget should not be padded but made free from manipulation of figure, the government including so much of padded expenses that is not reflecting on the economy is corrupt practice which does not help the economy.

[uchegod-21]

The countries are just following the latest technology in the finance world. They have the digital version of their currency. The value of the digital version is the value of the physical version. Since it does not appreciate it does not compete with bitcoin. If the value of their physical currency depreciates, the value of their digital token will depreciate also.
My country also has their own e-naira but many people are not using it.

[suzanne5223]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

To be honest, if I could remember correctly about 29-35 countries ought to have created their own digital currency since the year 2019 when the IMF boss advise them about thinking of creating their own CBDC which will serve ease of payment and possibly reduce the level of fiat printing. They were all serious about it then but they later throw it away and it will be nice if they are serious about it now crypto is extremely trending.

[TheUltraElite]

Many countries are busy developing their own central bank digital currency but in the latest development, International Monetary Fund made a statement concerning the stability and sustainability of the CBDC which is a big drawback to the government's quest to create a contender for cryptocurrency through the CBDC.

It is all a work-in-progress and the uncertainty about it is way more than that people need to think of. So lets not think about what is going to happen in future but get ready with bitcoin buying as much as we can whenever the price falls. If things go out of hand, we have nothing to do with it and have to cope with it. These are opportunities when there is a war like situation and bitcoin falls including stocks, keep money at hand and buy.

Forget what CBDC comes in, it will be for the better only, if not people will protest and governments will be forced to make changes. The governments always want new methods to tax its people, so it will be such that we can use it with some advantages not disadvantages.

[fiulpro]

- They are pseudo cryptocurrencies, people already know that they would take over some use from fiat by reducing the cost that goes in exchange but that's about it

- Government will try and ban cryptocurrencies as well so that they have investor pooling in their digital currencies

- They might be subjected to limited use since the government might not consider the people who are actually not equipped enough to handle virtual applications

I don't think it will affect cryptocurrencies as long as the government does not come in between the normal functioning of them.

[Findingnemo]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

India didn't launched their CBDC so its a wrong information which should be edited.

All the countries are thinking now and if you have sense then think why they are trying to create their own instead of an actual decentralized controlled by none?

Because they never want you to spend your money, they just keep everyone as slave and few as rich by keep inflating the value which decrease the purchase power of your currency gradually.

[uneng]

A lot of countries are releasing/ contemplating to release their own digital currencies. EU is contemplating digital euro, Jamaica is thinking of digital Jamaican dollar.. India has already launched digital rupee..
How these currencies will affect the bitcoin/crypto ecosystem?

India didn't launched their CBDC so its a wrong information which should be edited.

All the countries are thinking now and if you have sense then think why they are trying to create their own instead of an actual decentralized controlled by none?

Because they never want you to spend your money, they just keep everyone as slave and few as rich by keep inflating the value which decrease the purchase power of your currency gradually.

Governments like the idea cryptocurrencies are trackable, but they don't like its decentralized nature, so they are going to fixe it by creating their own centralized cryptocurrencies that aren't different from traditional fiat currencies in value, purpose and usage. I believe their impact on crypto market will be zero, because people who are investing in bitcoin and altcoins aren't interest in fiat currencies, especially from third world countries. Moreover, there is already stablecoins which follow dollar price, the best option of its kind and the only one needed to avoid cryptocurrency market's volatility.

[beerlover]

Governments like the idea cryptocurrencies are trackable, but they don't like its decentralized nature, so they are going to fixe it by creating their own centralized cryptocurrencies that aren't different from traditional fiat currencies in value, purpose and usage. I believe their impact on crypto market will be zero, because people who are investing in bitcoin and altcoins aren't interest in fiat currencies, especially from third world countries. Moreover, there is already stablecoins which follow dollar price, the best option of its kind and the only one needed to avoid cryptocurrency market's volatility.

Yeah, as someone who is a cryptocurrency trader all you’re going to need is the stable coins that we already have here in the cryptocurrency market, such as DAI and USDT, and nothing more. You don’t need CBDC because you won’t be able to trade with any of those.

When I researched on CBDC to understand what it really is, and to know whether it’s going to have any features at all that will differentiate it from the original fiat, but there isn’t. If you install the CBDC wallet from the Central Banks, you will see that only thing you can use this to do is simply just to send and receive money in your country, and it is not like Bitcoin where you can send and receive money from anywhere around the world. So it’s of no use. If I wanted to do local transactions, I can use my online banking.

[stepwilli]

It’s not all about countries creating their own digital currencies, the question is whether there is anyone who even cares about the CBDC? Is this the first time that a country has made an attempt in creating their digital currency? There have been other countries before now that have created their own digital currencies, but they never really gained any much adoption, and no one is talking about them this time around.

People really don’t have interest in making use of CBDC, just like some people have pointed out, CBDC is literally just the same fiat, there isn’t any difference and it’s also same banks that are offering this service to you.