Will digital dollar be a threat to bitcoin?

[Queentoshi]

I came across this on the news today, and I wonder if this will be a challenge to the growth of crypto in the united states with the government beginning to consider the digital dollar.

The White House is particularly targeting the proof-of-work transaction-validation process used by many blockchains, including bitcoin. This mechanism consumes huge amounts of energy because it requires a lot of computing power.

And with everything else, the administration is pushing for a digital dollar, a kind of digital twin of the dollar, at a time when China has taken a step ahead on this issue

Read here
Do you think with the level of civilization in the united states, that the digital dollar will be successful?

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[Hispo]

It wont be completely a threat to Bitcoin because many people see Bitcoin as an asset/ invesment instead a payment medium that can contest against the traditional ones provided by centralized platforms, like Visa & Mastercard. I don't share that vision however.

The digital dollar will probably be very successful among the average people who dont know about Bitcoin or cryptocrurrencies in general, since this project of digital currency by USA would likely make easier for people to manage their finances, pay their bills, pay for their services and keep track of their credit score, but in exchange of centralization and possible surveillance for commercial and law enforcement purposes.

Bitcoin shall continue to have high liquidity from those who want to speculate with its value, as investement and tradeable asset, it is also worth noticing those businesses which accept Bitcoin, they do it because either share the idea of a decentralized medium of exchange (while they also accept Visa & Mastercard) or necessity (as consequence from being excluded by Visa & Mastercard). People who already accept Bitcoin could just add the CBDC option if they want and keep Bitcoin and the rest of their options intact.

[Smartvirus]

The major issues with CBDC has not been the digitalisation of it but rather the issues of centralization as opposed to decentralisation and the fact that, its always going to he ravaged by issues of inflation. Digital dollar would remain a boundary bonded currency and that's not what bitcoin is. The uniqueness of bitcoin would always be its stronghold and the reason it persists in our world.

Having the government hedge on the energy consumption has become an old news and it would be washed away with the strokes of the clock. The CBDC will never hold a substantial threat to bitcoin.

[fiulpro]

Is visa threat to bitcoins?
Is Mastercard a threat to bitcoins?
What's digital dollar? Is it any different from the dollar in your bank ! ? How different is it gonna be? Is it not going to be backed 1:1 ? It is going to definitely be the same thing honestly and thus at the end of the day what you should focus on is accepting the fact that it's not a crypto it's not an ath it's not even a new kind of virtual currency, it's just nothing but fiat and thus it does have constraints of the fiat as well and there is nothing to be worried about since they are going to be backed and strong, hopefully, maybe not like usdt but can be used in its place.

[franky1]

a CBDC is not a threat.
its underlying value is locked to its laws. such as minimum wage and its inflation rate.

EG if min wage is CBDC=1hour labour. and each year there is 5% inflation
then in 10 years that 10CBDC is equivalent to only 44 minutes of labour
this means if you can buy 4 loaves of bread today if bread was pegged at 16min labour.. you can only buy 3 loaves in a decade

bitcoins value is supported at the bottom by the lowest cost to acquire it on the planet. which due to its deflationary process increases noticeably every four years meaning after 10 year the lowest value of bitcoin will buy you more bread than the first year

a governments CBDC may feel slightly different to use than mastercard/paypal. but ultimately it ends up being the same moving government money, pay taxes and have value decline due to inflation. and yes they will still 'create' new money at a unmeasured rate of their whim

bitcoins features and utility are different to government money. used for different things and supports a different value system

think of fiat/CBDC as things to get rid of, spend as quick as you can when you get it or invest it.. and think of bitcoin as the place to put it when you want to save/invest your value and not lose it by just holding fiat/CBDC

[coupable]

It will never be easy to completely change the currency and convert it into a scripted virtual currency. Especially since the dollar is the currency of the whole world. It really is the world's currency.
The US government is seeking to change its paper currency to an electronic counterpart. This will not change the financial characteristics of the dollar because it will remain centrally controlled by certain parties.
In this topic, the news about the gradual withdrawal of the $100 bills from the global markets before their final withdrawal from the US market was discussed :
https://bitcointalk.org/index.php?topic=5411084.0

[The Cryptovator]

I don't believe this is a threat to Bitcoin. Nothing happened when China banned Bitcoin and launch its digital currency. Rather it would be easier to convert into fiat once the exchange adds digital dollar or fiat. Then we don't need to run for paper money. And the blame for energy consumption isn't new anything.

[348Judah]

Do you think with the level of civilization in the united states, that the digital dollar will be successful?

Understand this fact, USD CBDC may be successfully launched and nothing can stop that fine and good but bitcoin can never admit CBDC as a threat just as a dog cannot be a threat to the lion same is how CBDC can never be a threat to bitcoin, cbdc is not a cryptocurrency but rather a digital version of fiat currency, what the people want ks bitcoin and are achieving their results in adopting it, i believe a large number of US citizens are benefiting the use of bitcoin using peer to peer without having a role from centralized banks or exchanges, both CBDC and bitcoin may exist together but the people understand what they want and go for it.

[DeathAngel]

Digital dollar is not a threat to bitcoin, no. Digital dollar is just a stablecoin, a shitcoin. It’s the same as the regular USD, they will be able to track everything you spend. They will be able to see what you like buying, where you eat, where you hang out. It’s full on communism, straight out of China.

Bitcoin is so much better in all ways. There’s a fixed supply, you can buy what you want & nobody can stop you. Your money won’t be eaten by inflation. You can transact P2P without government surveillance.

Buy bitcoin!

[Upgrade00]

You are asking two questions, one in the title and one in the thread. Addressing the latter first;

Do you think with the level of civilization in the united states, that the digital dollar will be successful?

Yes, it's a possibility. Digital exposure is quite high in the U.S, and having an extra layer on that using the block chain could definitely be successful. It could create a cheaper and faster way to transact using the USD, than what is available today, while giving the government more control of transactions.

Will digital dollar be a threat to bitcoin?

Is the regular dollar a threat to Bitcoin? It isn't, so a digital version, or more specifically a blockchain version would not be any different.
People use Bitcoin for a couple of reasons;
• As a global currency,
• For privacy,
• For freedom,
• As an asset and/or hedge fund,
• As a speculative asset, etc.
A CBDC would not fill this and attract those users to hold them instead.

[KingsDen]

The digital dollar you are saying about is the CBDC which is already in existence in many countries, including China that you mentioned. I want to note that your caption is wrong or doesn't correlate with the body. The real question would have been "Will digital dollar be a threat to stable coins like USDT".

Bitcoin is in different class as it is not centralized, unlike some stable coins and the alleged digital dollar. Then, to answer your question, there'll be no difference between fiat dollar and digital dollar. So, since fiat dollar doesn't affect Bitcoin, the digital version will not also. The innovation will encourage many to learn about cryptocurrency, it is an advantage.

[franky1]

a CBDC is not going to change over night..
just like taking old design bank notes out of circulation.. for a period of time they have both forms running both accepted as legal tender and slowly when old money is handed into banks new money is handed out. and old money doesnt return to circulation

most people spend their months salary within that same month. thus it wouldnt take decades to transition just like it doesnt take decades to take old bank notes out of circulation

the UK is going to be an example of how fast old (queen face) bank notes will be taken out of circulation

other methods they could employ
initially i can see how US could offer CBDC at a good + interest rate where people can "save" CBDC and earn interest on it while "saving" old fiat will go into negative interest. if they hand in/convert their normal fiat dollar to claim new CBDC then they wont lose value. . and then after some time just take old notes out of circulation. and the transition is complete

[CryptSafe]

I really do not think digital dollar would be a threat to Bitcoin. Bitcoin is seen as a store of value while some see it as digital gold. Digital dollar can stand as a means of transacting with Bitcoin for value but can not in any way effect or compete with Bitcoin. Bitcoin has already been in existence before digital dollar and come to talk of it, digital dollar is just currency to complement the fiat. So therefore I see no reason it Should be a threat to Bitcoin.

[topman21]

I came across this on the news today, and I wonder if this will be a challenge to the growth of crypto in the united states with the government beginning to consider the digital dollar.

The White House is particularly targeting the proof-of-work transaction-validation process used by many blockchains, including bitcoin. This mechanism consumes huge amounts of energy because it requires a lot of computing power.

And with everything else, the administration is pushing for a digital dollar, a kind of digital twin of the dollar, at a time when China has taken a step ahead on this issue

Read here
Do you think with the level of civilization in the united states, that the digital dollar will be successful?

I don't believe this will start the loss for Bitcoin.Various countries such as China have previously banned Bitcoin and brought their currencies to the market, but this did not harm Bitcoin.From there we were able to prove that no currency can actually be a loss for Bitcoin.If there is a system to convert the digital dollar to Bitcoin, Bitcoin will definitely be stronger.

[minairia3]

Digital dollars or any CBDC coin will not affect or threaten bitcoin. Simply because their essence is still the original fiat only converted to digital, still government-administered, still issued without limits, and will lose value over time. Actually, I don't see a difference between fiat and CBDC.
With the development of technology as well as the digitization of everything today, upgrading fiat to digital is inevitable. The goal is not that it will compete with bitcoin but the goal is to bring convenience to people as well as greater control for governments.

[bittraffic]

I came across this on the news today, and I wonder if this will be a challenge to the growth of crypto in the united states with the government beginning to consider the digital dollar.

The White House is particularly targeting the proof-of-work transaction-validation process used by many blockchains, including bitcoin. This mechanism consumes huge amounts of energy because it requires a lot of computing power.

And with everything else, the administration is pushing for a digital dollar, a kind of digital twin of the dollar, at a time when China has taken a step ahead on this issue

Read here
Do you think with the level of civilization in the united states, that the digital dollar will be successful?

They are saying they are following China's model?
The use of BTC will be threatened as this digital dollar may just be used and adopted faster than BTC. That is just it but BTC will still be preferred by most as an asset. The energy fud has been around for years but it's not going to make BTC vow to this fud.

But USD is also threatened these days since more countries today are avoiding the dollar use because of Russia-China transactions.

[FinneysTrueVision]

Most economic activity in the US is already digital. I don't know how an official diftal currency would look like. Would it only be used for settlements or will people be buying their coffee with it? It won't be a threat to bitcoin regardless. There will always be a need for something that is permissionless and censorship-resistant.

[mk4]

The digital dollar wouldn't be a threat to bitcoin the same way how the USD in it's current state isn't a threat to bitcoin.

Regulations concerning PoW mining is a different topic though. If the authorities became a lot more strict, it's safe to assume that we'd expect a temporary sell off; but in the end it would still probably be a nothingburger in the long term.

[SquirrelJulietGarden]

Digital dollar will not be a thread for Bitcoin.

It is similar to stable coins that are abundant in crypto market but it has a big different characteristic. It is built, launched and managed by central banks and governments. It won't be collapsed like UST from Terra and it is advantage of governmental digital dollar.

Growth of digital dollar and CBDCs will result in more and stricter solutions from governments in regulations, law enforcements in order to control stable coins as well as reduce effects of stable coins. They will do all these to get as much benefit as possible for their CBDCs.

[2stout]

Just remember, digital dollars/CBDC= fiat 2.0, so it's really hard to see it being a threat to Bitcoin, IMHO.  Bitcoin is a true global currency, wherein the digital dollars/CBDC will be a more a nation thing with some international reach.  Gotta worry more about the gov't being a threat than the digital dollar; who knows, maybe it's one of their tools to backdoor Bitcoin?