Can Central Bank Digital Currencies Kill Cryptocurrencies ?

[dezoel]

Don't know what's that "little case" mean but cryptos like btc and eth are not little or small so I guess they are going to be safe for this. The only ones that can get killed here are the small cryptos or the ones that are not known and not those small cryptos that are on the top like matic. That was fine to me since I always want the junk coins to disappear so that this market are going to be clean.

An economy of a country doesn't totally or doesn't only depend on the cryptos, which is why china that already banned cryptos a long time ago are still doing well. Other countries should not be afraid of but if there are scared here, that would only be the crypto users.

[Smartprofit]

CBDC is a digital financial system that is fully controlled by the Central Bank (unlike, for example, cash).

Central bank does fully control cash, since it fully controls the supply. Sure, it doesn't know who pays who, but monopolizing people's money is entire control.

The exchange of bitcoins for CBDC can be disabled at the program level. 

You can't know what I exchange, unless there's an intermediary involved. Same goes for cash, bank accounts, poker stars credit points, anything that's treated as money. However, electronic money, such as bank account, does violate your privacy.

This will turn Bitcoin into a geek toy.

No, it wouldn't. Even if we assume they somehow traced everyone who's going to trade their E-USD for BTC, and froze their accounts, which is impossible but say if, there's still a pretty strong economy build on top of bitcoin. There are people, me included, who use bitcoin as a currency. Also, this dictating attitude would push many into using money that is censorship resistant.

In my opinion, CBDCs are designed to be the only money in the world.  It will be a financial monopoly.  All other money will be prohibited.  In my opinion, this is exactly the idea of ​​CBDC....

Cash will be banned (banknotes spread viruses, cash is used by criminals and terrorists). 

Commercial bank deposits will be prohibited (commercial banks are not needed, they are obsolete). 

IT corporate money will be banned (corporations should not compete with governments). 

Cryptocurrencies and stablecoins will be banned (these are monetary surrogates, their circulation of money harms the new global financial system). 

Yes, nowadays, many goods and services can be purchased with bitcoins. 

However, direct settlements with bitcoins can be prohibited (by controlling the circulation of goods and services).  The first step towards such control is the digital marking of goods.

[jrrsparkles]

Okay apart from the text I got some thoughts, if the government claims that CBDC can kill the decentralized cryptocurrencies literally means that those decentralized cryptocurrencies are killing the existence of fiat money?

If yes then CBDC are not much different from the fiat money then these bitcoin and ethereum can kill the CBDCs as well in future.

[BlackHatCoiner]

In my opinion, CBDCs are designed to be the only money in the world.

But, they can't, because there's money that satisfies needs you can't even imagine doing in the traditional financial system.

Cash will be banned (banknotes spread viruses, cash is used by criminals and terrorists).

Cash is also used by innocent people. It won't be banned because of terrorism. It'll be banned to make privacy invasion as much effective as possible. In other words, to control.

IT corporate money will be banned (corporations should not compete with governments).

That's just one's opinion.

Cryptocurrencies and stablecoins will be banned (these are monetary surrogates, their circulation of money harms the new global financial system). 

They've tried to do that in the past a gazillion times, yet, I can still use bitcoin to purchase many stuff.

However, direct settlements with bitcoins can be prohibited (by controlling the circulation of goods and services).

Direct settlements with bitcoin cannot be prohibited in the same way cryptography cannot be prohibited.

[so98nn]

Barely doubt this can happen. There is no way crypto currencies can get killed with central banks actions like this. Presumably not by single governments action!! Let’s say India launches this digital currency then also rest of the world will continue to flourish in the crypto currencies.

Moreover, in the era where different countries are launching legal tenders and trying to become worlds bitcoin hub I barely doubt actions of single government can interfere with existence of bitcoin. Maybe in India itself it could hamper but not throughout the world.

[The Cryptovator]

I want to take CDBC positively. This isn't harmful to Bitcoin anyway. It would make it easier to trade Bitcoin legally worldwide. Now we need cash to make Liquidity. But when CBDC will Launch we can easily convert Bitcoin to CDBC. Because most exchanges will accept CDBC and no reason to ignore that. Killing Bitcoin isn't an easy task at all. And centralized currency issuers will never support decentralized cryptocurrency anyway. So let them think what they want, it won't hurt Bitcoin.

[Zilon]

Can the government kill what they can't regulate and control the answer is NO. The best the can do is project their CBDC and stair up FUD in the minds of novice crypto investors which might trigger their sell-off. IMF still wants to be in-charge and have full custody of how much move around the international market so the fight hard to restore their centralized nature and frown at any country that legalizes Bitcoin. But the truth remains the era of centralization is long gone the world is embracing decentralization and with this change there is nothing any government in the world can do to stop this

[justdimin]

You have to understand that the current RBI governor is a political hire to act as a puppet for the government. If the Indian government really cared about experience, they wouldn't let Dr. Rajan resign.

CBDCs can't put a dent on cryptos. Killing is out of question. Cryptocurrencies work in a different way and CBDCs are just a digital representation of fiat currency. It won't be much different than the ways we are using UPI nowadays. Don't worry!

CBDC definitely can't kill crypto, because it is just one nation, doesn't matter which nation, could be the USA, the UK, India, Greece, Germany, it never really matters. The only thing that matters is the fact that one nation could be eliminated from the current situation and there will be a lot of people who will end up with upsetting portfolios that mean nothing anymore, or move towards p2p to make it work.

However, if we end up with something that is a bit more precious, then we could end up with a good return in the long run. So, the best thing to do would be to actually end up with a good alternative ready before any of this happens.

[naira]

Forbidding something that is not controlled by a certain institution will only be in vain. Bitcoin, who can really control when public awareness is now so open about Bitcoin? The fear that the IMF created with their myriad limitations of simply being able to organize bankers to issue CBDCs does not mean they have succeeded in controlling Bitcoin transactions in a controlled manner.

Killing crypto with growth that will still only be left behind, in general CBDC is controlled in the region of bank chaos, then aims to need a global crypto financial system? well, maybe it is possible if every country and financial policy is equalized? but the article is that all banks in foreign countries only take care of their country's finances. no matter how much they do everything possible, in fact blockchain is used to adapt to today's finances. CBDCs will remain limited, whereas crypto could be created with billions in supply and make it difficult for the IMF to control. What about trying to control Bitcoin's growth? really very far from expectations.

[Fatunad]

You have to understand that the current RBI governor is a political hire to act as a puppet for the government. If the Indian government really cared about experience, they wouldn't let Dr. Rajan resign.

CBDCs can't put a dent on cryptos. Killing is out of question. Cryptocurrencies work in a different way and CBDCs are just a digital representation of fiat currency. It won't be much different than the ways we are using UPI nowadays. Don't worry!

CBDC definitely can't kill crypto, because it is just one nation, doesn't matter which nation, could be the USA, the UK, India, Greece, Germany, it never really matters. The only thing that matters is the fact that one nation could be eliminated from the current situation and there will be a lot of people who will end up with upsetting portfolios that mean nothing anymore, or move towards p2p to make it work.

However, if we end up with something that is a bit more precious, then we could end up with a good return in the long run. So, the best thing to do would be to actually end up with a good alternative ready before any of this happens.

Finding some alternative for this year or directly in a hurry wont really be that relevant.Why? Im too confident that there's no way or there's no time that would come in terms of controlling out crypto even or despite
of the existence of cbdc's or something those centralized wont really be enough on taking down crypto.We know on how decentralized market works and even how hard they would make out those bans
then the community would really be still able to make out some other way or path on making transactions without any intervention from them.They both co-exist and serve out
different people who do really needs out on something.

[tadamichi]

In my opinion, CBDCs are designed to be the only money in the world.  It will be a financial monopoly.  All other money will be prohibited.  In my opinion, this is exactly the idea of ​​CBDC....

If you understand economics then you will understand this can only work in theory, because everything can be used as money.
Example:
Cigarettes are used as money in prison.

The only thing they will achieve is creating a huge shadow economy.

If they really make a cbdc this restrictive and prohibit everything else, then people will just settle in other forms of money when needed. People can settle their daily needs in a cbdc and then circumvent the system for everything else, there’s nothing that can stop this in practice.

cash is used by criminals and terrorists

It’s not about which tool they use, if they kill cash then criminals and terrorists can use gold or anything else. Cash should be a human right, because in 99% of cases it’s used by regular citizens and it will only kill privacy and freedom for them.

And if just 1 other country doesn’t ban cash, then they can settle in this currency, so it’s really just regular people that are affected by this.

[suzanne5223]

I believe the first question OP, should ask him/herself is have any CBDC performed very well in the past few years because it will always be the something as fiat currency and the only difference is one is digital cash because the reason why people supported crypto like Bitcoin till today is because of it decentralized and no censorship and consensus nature.
If CBDC cannot be operated in a decentralized and no censorship and consensus way only a few people will use it.

[jaberwock]

Are they going to make the central bank digital currencies decentralized? Then yes. But will they? I don't think so. They are never going to so something like this. Decentralization means more power to the citizens which is never going to happen. So no, central bank issued digital currencies are not going to kill crypto currencies. They are like regular fiat currency but with slightly different structure where they use a digital ledger.

Yes, you are right about that, decentralization puts the citizens in control here, but you also have to know that it all depends on the platform that you are making use of. Cryptocurrency can be decentralized, but if the users are making use of centralized exchanges or custodian wallets, then that means that the government is still in control. the governments are now making use of custodial wallets and centralized exchanges to penetrate into the decentralized crypto currency space.

So, the only way to make sure that the citizens remain in power is to make sure that they are all making use of decentralized platforms such as P2P exchanges, and also fully decentralized wallets.

[Cookdata]

Okay apart from the text I got some thoughts, if the government claims that CBDC can kill the decentralized cryptocurrencies literally means that those decentralized cryptocurrencies are killing the existence of fiat money?

If yes then CBDC are not much different from the fiat money then these bitcoin and ethereum can kill the CBDCs as well in future.

Crypto is killing fiat in a such a way that it has made many of us realize how useless they are, they made us believe to save our fiat with shitty fiat interest rates instead of encouraging us to keep the good investment and likewise Crypto is not killing fiat because the two are different things which sometimes depends on each other. For example, you need fiat to switch between portals of fiat and cryptocurrency and vice versa.
CBDC is nothing different from Fiat we see every day, one is physical and the other is recorded on the blockchain ledger, it is not close to stable coins on market cap, they are insignificant where crypto exists.

[wxa7115]

The claims in the article would apply to majority of the coins available, but not to Bitcoin, so making the headline about Bitcoin is a bit wrong and misleading.

Sankar detailed: “A currency needs an issuer or it needs intrinsic value. Many cryptocurrencies which have neither are still being accepted at face value – not just by gullible investors but also by expert policymakers and academicians.” The official elaborated:

Fiat can be arbitrarily printed and have no intrinsic value, but is yet accepted at face value, the government does not want users to come to this realization, hence they try to talk down on alternative currencies.

Can CBDCs kill Bitcoin? No.
A blockchain version of a centralized system would not undermine a decentralized one. Of anything, imitating cryptocurrencies would give them more legitimacy.

Basically this is nothing more but politicians believing their own lies, if bitcoin could be as easily killed as they think then why it is still exist today? Why despite the fact a digital form of fiat has existed for so long people have still decided to accept bitcoin?

Has it ever occurred to them that it is because people are rejecting the characteristics of fiat and prefer a decentralized currency they cannot control and exploit at will? Obviously not, since they believe they can kill bitcoin by releasing their CBDCs.

[Awwal08]

Because of the intense security surveillance of transactions involving cryptocurrencies in Nigeria, any transaction stating cryptocurrency in the narration would result in the account being frozen, and they are very serious about it. The e-naira was later introduced to replace the cryptocurrency. They have the ability to destroy cryptocurrency if they are serious about it.

[Wong Gendheng]

Don't worry about the idea of a central bank cryptocurrencies, this will make crypto more popular and certainly won't kill the future of cryptocurrencies, I think this is good so it can make users more secure and not worried about very high price fluctuations like what is happening with cryptocurrencies today .

[Wawa2013]

Don't worry about the idea of a central bank cryptocurrencies, this will make crypto more popular and certainly won't kill the future of cryptocurrencies, I think this is good so it can make users more secure and not worried about very high price fluctuations like what is happening with cryptocurrencies today .

Since the emergence of crypto is not liked by the government, therefore there are many ways that the government has taken to kill crypto.
But in the end crypto is still there and is still growing, meaning that the government's efforts always fail to kill crypto. Therefore CBDC is not
a threat that can kill crypto. After all, it would be better if CBDCs and cryptocurrencies co-exist, complementing each other, rather than beating
each other up. So it is impossible for CBDC to kill crypto, and vice versa, crypto is not possible to kill CBDC too. Since both are still needed
for now, after all crypto has a bright future, because crypto can give us the freedom to manage our own finances. Therefore more and more people
trust crypto, even though the government does not support crypto. Therefore investing in crypto is very profitable, so it's not too late if we want
to invest in crypto today.

[Cryptodebjoe]

The key factor is that as long as CBDC is concerned the government would not want to decentralize the currency and this bottleneck will stifle the currency once again....

[arwin100]

For trying to adopt the changes made by cryptocurrency for sure it will not kill the industry what you concerned with and most provably people will take it as alternative since investors will not focus on one thing so for sure all of this will get adopted and maybe by the help of their created currency it will help boost the popularity of crypto. So chill out and don't worry about things which didn't give any bad effect yet.