Can Central Bank Digital Currencies Kill Cryptocurrencies ?

[Abiky]

https://news.bitcoin.com/rbi-official-central-bank-digital-currencies-could-kill-cryptocurrencies/


Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar says central bank digital currencies could “kill whatever little case there could be” for cryptocurrencies, like bitcoin and ether.

RBI Deputy Governor T. Rabi Sankar talked about the potential impact of central bank digital currencies (CBDCs) on cryptocurrencies, like bitcoin and ether, at a webinar organized by the International Monetary Fund (IMF), local media reported Friday. By “private cryptocurrencies,” the Indian government and the central bank refer to all non-government-issued cryptocurrencies, including bitcoin and ether.


I know IMF are huge critics of Bitcoin and any country that adopts Bitcoin as a legal tender, they're also involved one way or the other innit . As I don't blame RBI much, only scared of dollarization https://news.bitcoin.com/indias-central-bank-rbi-warns-crypto-could-lead-to-dollarization-of-economy/ which they say are not of them countries interest. Asides that, drug abuse and money laundering has been a norm over there.

IMF are chiefly responsible and Championing the move against Crypto Currencies and Bitcoin all for them selfish interest... But do you see any possibility of Central Bank's Cryptocurrencies killing Bitcoin, Crypto Currencies ?, although China imposed huges bans of any other digital currencies except there's and are doing quite well ( Economy ) correct me if I'm not!

What you think?!

CBDCs won't probably use a Blockchain, so don't count on them "killing" cryptocurrencies anytime soon. Of course, most people will use CBDCs over crypto because they're backed by the full faith and credit of the government. It'll be just like now where most people use Fiat even when crypto proves to be better in many ways. I see a future where both CBDCs and decentralized cryptocurrencies will collide, giving people the choice from one type of currency to the other. No matter how hard governments try, they will never destroy crypto/Blockchain tech because of its decentralized and censorship-resistant design.

Bitcoin is the one cryptocurrency that will last a lifetime due to how far it has gone since day one. It's only been 13 years since BTC's inception, yet it continues to grow stronger every day. As long as decentralization wins, there should be nothing to worry about. Just my opinion

[TheGreatPython]

It sounds like can fiat currency kill BTC! I ready doubts about this concept of CBDC and its potential. Most of the country in the world doesn't have the ability and resource to create and maintain their own CBDC. Allowing crypto assets and taxing them is less costly and convenient for the govt than creating CBDC. Also, I do not find many similarities between them expect their use case. So talking about killing one another is irrelevant.

Fiat currency is already been here right before the btc came in and fiat is still being favored by the governments/banks and as well as the majority of people. Btc is nothing against it but between cbdc and cryptos, cryptos are the first one to came in however cbdc is being favored the most by the governments/banks because it's theirs but many people are still sticking with cryptos over cbdc so there is no need to worry about it.

Cbdc cant surely kill cryptos but they are the ones that cryptos will kill. Governments can allow crypto but they cannot totally control it, that is the reason why they created cbdc and I don't think creating it is hard and costly.

[laredo7mm]

It sounds like can fiat currency kill BTC! I ready doubts about this concept of CBDC and its potential. Most of the country in the world doesn't have the ability and resource to create and maintain their own CBDC. Allowing crypto assets and taxing them is less costly and convenient for the govt than creating CBDC. Also, I do not find many similarities between them expect their use case. So talking about killing one another is irrelevant.

Fiat currency is already been here right before the btc came in and fiat is still being favored by the governments/banks and as well as the majority of people. Btc is nothing against it but between cbdc and cryptos, cryptos are the first one to came in however cbdc is being favored the most by the governments/banks because it's theirs but many people are still sticking with cryptos over cbdc so there is no need to worry about it.

Cbdc cant surely kill cryptos but they are the ones that cryptos will kill. Governments can allow crypto but they cannot totally control it, that is the reason why they created cbdc and I don't think creating it is hard and costly.

You should do more research about what you are talking about. People do not like or favored fiat. They are forced to use it because it has been legalized by their government. Inflation is the reason why people do not like fiat in the first place. CBDC is nothing but a digital form of fiat. There is nothing new so it is not a better version of fiat. People will face even greater problems while using CBDC.

If BTC is nothing against fiat then how did you come to this place? BTC controlled by any company? Didn't you see any ads about BTC? Still, you find it out and this number is growing. There must be something in it that's why people like to store their wealth in BTC, not fiat.

[Abiky]

You should do more research about what you are talking about. People do not like or favored fiat. They are forced to use it because it has been legalized by their government. Inflation is the reason why people do not like fiat in the first place. CBDC is nothing but a digital form of fiat. There is nothing new so it is not a better version of fiat. People will face even greater problems while using CBDC.

If BTC is nothing against fiat then how did you come to this place? BTC controlled by any company? Didn't you see any ads about BTC? Still, you find it out and this number is growing. There must be something in it that's why people like to store their wealth in BTC, not fiat.

You're right about that. CBDCs are just the same as any ordinary Fiat currency except for the fact that they're completely digitized. A digital cash system would bring lots of benefits to both governments and central banks alike. For instance, it'll be possible to track and trace every transaction performed on the government-controlled ledger (something that's not possible with paper money today). This will mark the end of privacy for good.

At least, decentralized cryptocurrencies will be there to save the day. CBDCs will never kill crypto because the latter is decentralized and censorship-resistant. Of course, people will use CBDCs because they don't have any other choice. But decentralized cryptocurrencies won't lose traction no matter how hard governments try to destroy them. As long as decentralization is put at the forefront of crypto/Blockchain tech, we'll have nothing to worry about. Just my thoughts

[romero121]

You're right about that. CBDCs are just the same as any ordinary Fiat currency except for the fact that they're completely digitized. A digital cash system would bring lots of benefits to both governments and central banks alike. For instance, it'll be possible to track and trace every transaction performed on the government-controlled ledger (something that's not possible with paper money today). This will mark the end of privacy for good.

At least, decentralized cryptocurrencies will be there to save the day. CBDCs will never kill crypto because the latter is decentralized and censorship-resistant. Of course, people will use CBDCs because they don't have any other choice. But decentralized cryptocurrencies won't lose traction no matter how hard governments try to destroy them. As long as decentralization is put at the forefront of crypto/Blockchain tech, we'll have nothing to worry about. Just my thoughts

CBDCs are just digitised traditional fiat that are being run over a cryptography. How far this gonna succeed same as the bitcoin and other cryptocurrencies isn't known. This digitised usage will help ease the taxation process. In most of the cases even the CBDC isn't integrated with a blockchain. So, this CBDC doesn't have anything important and this isn't gonna kill bitcoin.

[Kadal Ijo]

In my opinion, the presence of Central Bank Cryptocurrencies will not interfere with a strong Cryptocurrencies community, this is actually an old idea to make investors safer and not afraid of being exposed to scams, and cryptocurrencies that decentralized in my opinion will continue to be liked by people because of large profit opportunities.

[Zlantann]

Central Bank Digital Currencies and Bitcoin offers different services. Central Bank currencies are centralized and controlled by government. They are digitalized fiat created to compete with Bitcoin to make their citizens loose interest in Bitcoin. While Bitcoin holds the key to privacy and freedom. Smart people would always know the difference and the advantage of Bitcoin over these CBDCs and would definitely choose the former. The relatively low transaction fees of Bitcoin would forever make Bitcoin the preferred choice. My insinuation is that both CBDC and Bitcoin would continue to exist. If any one would kill each other, my guess is that Bitcoin would kill them all.     

[South Park]

Central Bank Digital Currencies and Bitcoin offers different services. Central Bank currencies are centralized and controlled by government. They are digitalized fiat created to compete with Bitcoin to make their citizens loose interest in Bitcoin. While Bitcoin holds the key to privacy and freedom. Smart people would always know the difference and the advantage of Bitcoin over these CBDCs and would definitely choose the former. The relatively low transaction fees of Bitcoin would forever make Bitcoin the preferred choice. My insinuation is that both CBDC and Bitcoin would continue to exist. If any one would kill each other, my guess is that Bitcoin would kill them all.     

The problem is that on average people do not want to bother about learning the differences between the two, which means they will believe whatever they are told by the government, and if they are told that CBDCs are better than bitcoin then they will believe it, and even if we got to see a massive crisis in the future and people had to learn the hard way about how bad the fiat system is for them, I am sure that just a few years after it they will forget about it and the governments will begin to push for their fiat and CBDCs again.

[Oilacris]

Central Bank Digital Currencies and Bitcoin offers different services. Central Bank currencies are centralized and controlled by government. They are digitalized fiat created to compete with Bitcoin to make their citizens loose interest in Bitcoin. While Bitcoin holds the key to privacy and freedom. Smart people would always know the difference and the advantage of Bitcoin over these CBDCs and would definitely choose the former. The relatively low transaction fees of Bitcoin would forever make Bitcoin the preferred choice. My insinuation is that both CBDC and Bitcoin would continue to exist. If any one would kill each other, my guess is that Bitcoin would kill them all.     

The problem is that on average people do not want to bother about learning the differences between the two, which means they will believe whatever they are told by the government, and if they are told that CBDCs are better than bitcoin then they will believe it, and even if we got to see a massive crisis in the future and people had to learn the hard way about how bad the fiat system is for them, I am sure that just a few years after it they will forget about it and the governments will begin to push for their fiat and CBDCs again.

If you are illeterate then you would really be having this kind of problem in differentiation in between cbdc and cryptocurrencies and on the question if cbdc can kill crypto? No it can't because it's a different market which simply means
That people would really be still supporting crypto since we do know the benefits in terms of utility plus having the opportunity for you to make profits or money or in terms of investment.

[RussianEnglishTranslation]

I don't think the central bank digital currencies will kill off crypto. Many CBDCs will be built to work with public chains like Etheruem, the internet computer, and Flare.

[coupable]

Saying that these currencies will kill cryptocurrencies is an exaggeration for several reasons, the most important of which are:
- There are fundamental differences between the two currencies, and one cannot substitute for the other with the same characteristics.
- Encrypted currencies have become a reality, and if someone intends or wants to kill them, there are also many who do not aspire to that and prefer decentralized encrypted currencies over central ones.

[Abiky]

CBDCs are just digitised traditional fiat that are being run over a cryptography. How far this gonna succeed same as the bitcoin and other cryptocurrencies isn't known. This digitised usage will help ease the taxation process. In most of the cases even the CBDC isn't integrated with a blockchain. So, this CBDC doesn't have anything important and this isn't gonna kill bitcoin.

That's certainly true, mate. We could say that CBDCs are nothing more but a "glorified" version of Fiat. With the new digital cash system, governments and banks will have more power than ever. Not only will CBDCs make taxation easier, but they will also allow governments to keep track of your spending habits. Everything will be fully visible in a digital ledger only the aforementioned entities control. This will mark the end of privacy, as paper money is phased out for good.

Luckily, we have decentralized alternatives (cryptocurrencies) that will enable financial freedom without interruptions. As long as the community keeps crypto/Blockchain tech decentralized, there should be nothing to worry about. Who knows if CBDCs get to live alongside crypto for generations? Just my thoughts

[South Park]

The problem is that on average people do not want to bother about learning the differences between the two, which means they will believe whatever they are told by the government, and if they are told that CBDCs are better than bitcoin then they will believe it, and even if we got to see a massive crisis in the future and people had to learn the hard way about how bad the fiat system is for them, I am sure that just a few years after it they will forget about it and the governments will begin to push for their fiat and CBDCs again.

If you are illeterate then you would really be having this kind of problem in differentiation in between cbdc and cryptocurrencies and on the question if cbdc can kill crypto? No it can't because it's a different market which simply means
That people would really be still supporting crypto since we do know the benefits in terms of utility plus having the opportunity for you to make profits or money or in terms of investment.

As sad as this may sound most people are financially illiterate, despite their finances being so important that they dedicate a great deal of their time to try to earn money, they do not want to stop and think about the moves they need to do to improve their financial situation, so even if CBDCs and cryptocurrencies are completely different most people will believe whatever they are told, something which will hinder the adoption and the development of cryptocurrencies in general.

[Ahli38]

Saying that these currencies will kill cryptocurrencies is an exaggeration for several reasons, the most important of which are:
- There are fundamental differences between the two currencies, and one cannot substitute for the other with the same characteristics.
- Encrypted currencies have become a reality, and if someone intends or wants to kill them, there are also many who do not aspire to that and prefer decentralized encrypted currencies over central ones.

that's right mate. even instead of CBDC killing cryptocurrency instead I see the opposite potential. because most people don't want to be controlled by the center. And it could be when someone who is not familiar with cryptocurrency and he is introduced to the CBDC system by the central bank and finally he uses CBDC and from there he begins to deepen so that he finds another system, namely Cryptocurrency and finally he will face two choices to be made and choose which one is better. comfortable between centralized and non-centred. then I'm sure most people will choose the decentralized one. because freedom is there. and it is no longer a myth that every human being wants freedom and does not want to be controlled. so in the end Cryptocurrency will be the most chosen one. and maintain its superiority.

[Fivestar4everMVP]

But do you see any possibility of Central Bank's Cryptocurrencies killing Bitcoin, Crypto Currencies ?,

Well, This can never happen if we the entire community stand together as one, the cryptocurrency community has grown so large and we are still growing, the central bank, the IMF, China, whatever they call themselves , cannot impose their currency on us if we do not let them.

I still dont understand why this set of bodies are always campaigning against Bitcoin and cryptocurrencies in general, as if they are the ones to choose for us, what or where we should put our money in, all this campaign against Bitcoin is probably because with Bitcoin , they lose complete access to our money which they really need to continue to enrich themselves while we, the true owners of the money languish in poverty through devaluation of the fiat currency and inflation, this is not good , and only a fool will have a taste of sugar are still go back to licking salt.

[Sang Prabu]

I'm sure this will not happen, cryptocurrencies is a unique thing that depends on the power of the community, as happened with Bitcoin with a community that is spread throughout the world and many countries choose to legalize bitcoin and increasingly proven that bitcoin provides many benefits and income on country.

[Mauser]

IMF are chiefly responsible and Championing the move against Crypto Currencies and Bitcoin all for them selfish interest... But do you see any possibility of Central Bank's Cryptocurrencies killing Bitcoin, Crypto Currencies ?, although China imposed huges bans of any other digital currencies except there's and are doing quite well ( Economy ) correct me if I'm not!

What you think?!

I don't think that digital currencies issued by central banks can kill crypto currencies. The more people invest in crypto currencies the more powerful they become, and the less power governments have on the money supply. Banning crypto currencies might be one option for one party countries like China, but it doesn't work in democracy with multiple parties. We have seen so this year when the European Union tried to limit crypto currencies and their bill didn't pass. As for the IMF, it's is run by politicians who are connected to the big Western countries and will act in their interest. The IMF is giving out their loans in US Dollars and Euros and doesn't want Bitcoins and other cryptos to succeed. In the end it comes down to investors who actually buy and trade in a currency they choose. Just because the government tells us to buy central bank digital currency doesn't mean we have to do it. In my opinion the demand for such digital currencies will not be as high as for crypto currencies.

[minime0105]

But I will let you know if that and we all know that before the existence of cryptocurrency Fiat currency is already in existence so both of them having different uses but similar so therefore cryptocurrency cannot be killed all stone out of the market because of Fiat currency the reason is that cryptocurrency is a decentralized currency why Fiat currency is centralised currency which is being controlled by the government why decentralized currency is not being controlled by the government which Bitcoin falls under the decentralized currency.

[Ozero]

I wonder how central bank digital currencies (CBDC) can kill a decentralized cryptocurrency? Only as a result of normal competition between them? But these are different financial assets and there is minimal competition between them. Most likely, CBDCs will compete with private stablecoins, and this can happen with the help of strict regulation and government bans. But a decentralized cryptocurrency should not be afraid of CBDC. After all, CBDC is, in fact, a state stablecoin and nothing more. People themselves will rob what they use and we are absolutely confident in cryptocurrency.

[Jemzx00]

Saying that these currencies will kill cryptocurrencies is an exaggeration for several reasons, the most important of which are:
- There are fundamental differences between the two currencies, and one cannot substitute for the other with the same characteristics.
- Encrypted currencies have become a reality, and if someone intends or wants to kill them, there are also many who do not aspire to that and prefer decentralized encrypted currencies over central ones.

There will more and more reasons as to why these digital currencies will never kill or replaced cryptocurrency especially bitcoin. Both of these reason are correct as cryptocurrencies and digital currencies will not be same and both will have its own supports and critic. In case this will how governments will transition in the future, both type of currency will coexist with each other and cryptocurrencies will still be considered as an asset, investment and a volatile currency.