Will digital dollar be a threat to bitcoin?

[davis196]

The only short term threat regarding the digital dollar would be banning Proof-of-work blockchains and mining in the United States.
The Bitcoin miners will have to move to another country. There will be short term drops of the mining hashrate and that's all.
The digital dollar would be a bigger threat for the fiat banks rather than Bitcoin. CBDCs are designed to give more power to the central banks and I'm sure that this will make the private banks obsolete in the distant future. In the short term, private banks cannot be destroyed, because there's no new system that can replace the current fiat lending system.
Maybe PoW coins will be banned completely from all crypto exchanges in the future. Who knows?

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[Pierre 2]

Well I personally use 3 biggest usd pegged stable coins right now (BUSD, USDT and USDC) but purpose for me to use them is completely different. I convert Turkish lira to USD over these coins. So Digital Dollar would only make things easier. Compared to my dollar demand, I buy Bitcoin to do conversions to altcoins, or to hodl, or to short term trade etc. People should stop comparing stable coins to Bitcoin.

[Iranus]

The only short term threat regarding the digital dollar would be banning Proof-of-work blockchains and mining in the United States.
The Bitcoin miners will have to move to another country. There will be short term drops of the mining hashrate and that's all.
The digital dollar would be a bigger threat for the fiat banks rather than Bitcoin. CBDCs are designed to give more power to the central banks and I'm sure that this will make the private banks obsolete in the distant future. In the short term, private banks cannot be destroyed, because there's no new system that can replace the current fiat lending system.
Maybe PoW coins will be banned completely from all crypto exchanges in the future. Who knows?

I don't understand any connection to digital dollar issuance and POW blockchains and mining, POW will only be affected by energy related issues.
CBDC or digital dollars are really just an upgrade of fiat to a digital version, so they will support banking or fiat money in the future. They are basically brothers, not rivals. CBDC would be a danger to stablecoins, as money printing should be managed by governments, not by private companies. The stablecoin is irritating government institutions, who feel their power is waning because of the unregulated operation of the stablecoin.

[TheUltraElite]

It will all depend on the returns that Bitcoin and digital dollar will give. Digital dollar is more like a stablecoin which is suitable for risk averse individuals.

A digital dollar is a stablecoin. There is no question of return coming for that, but to be used only as a stablecoin or just like anoher fiat money payment mode.

If Proof of work miners are prohibited they will move to other countries. There are bypasses to such problems and mining would not stop. Again a CBDC will not change the entire scenario immediately. There will be gradual change in the people's minds and then the coin might see some movement. Whether people use the CBDC or crypto will come to picture only then.

[Luzin]

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?

It is clear that some countries today have plans for the creation of digital currencies. That's because they are concerned about the development and flow of crypto currency. They are afraid of being challenged and are powerless to stop it. CBDC dollars are also a digital currency with full state control and will probably be the same as you say. But the digital dollar will also need a process of recognition. That's what's a regulatory advantage.
Maybe CBDC will be recognized as a legitimate transaction tool, and that's what makes BTC a little weak. But I think as long as the consensus of trust in crypto is there, we don't need to worry. I think crypto is just about to start.

[Reid]

It will be successful, I do believe that. It's not like many of Americans are still using literally cash, most are using credit and debit cards so when it comes digital, it will be more like an upgrade again.
Is it a threat to Bitcoin? No, so does any fiat that is change to digital.
It goes back to the sample of credit and debit cards. They exist and yet investors are buying Bitcoin. It's not really because of usage but more like preparing for the future.

[Leviathan.007]

We have had this discussion on the forum for a number of times and the answer has always been the same and clear. It is important to understand that this will not be a threat or a problem for bitcoin at all because in the end, a digital dollar is something that is backed by a dollar and there is no significant difference between a digital dollar and a fiat money. Both are centralized and are getting controlled by governments, central banks, and other related organizations, which means that there is no big difference between traditional fiat money and the digital dollar. Therefore, this cannot pose a threat to bitcoin at all.

[_BlackStar]

OP, I agree with some assumptions that digital dollars are not a threat to bitcoin. The digital dollar is a CBDC product that is currently being prepared by the government in order to regain the trust of its customers. Centralized financial systems have lost a lot of user trust mainly because of the many problems customers have with banks out there.

Of course it would be very similar to a stablecoin, but these digital dollars are controlled by the government through a central bank. There may be positives and negatives for bitcoin, but I'm sure anyone who knows how the centralized financial system works then bitcoin will still be the best option to use.

[rby]

Digital dollar = Digital Currency
Bitcoin = Cryptocurrency
A digital currency which made by a government of a country couldn't be cryptocurrency. As much as cryptocurrencies offer us decentralized convenience and informational security, I don't think any government-run currency can protect it. I also think that digital USD is a stable currency, and Bitcoin is a currency with volatilities so Bitcoin is used for trading. So all things considered I don't think we need to worry about digital dollar.

It is not all cryptocurrencies that are decentralized and has information security. That is why Bitcoin remains the only reliable coin in terms of decentralization. It means that CBDC and some altcoins share the same characteristics of centralization. And if thr digital dollar should have effect on cryptocurrencies, it should affect coins like Binance stable coin and usdt and not decentralized Bitcoin.

[Odusko]

The digital dollar will not be a threat to Bitcoin as Bitcoin only provides an alternative and not a competitor with traditional currency, after all, does not only serve as a currency but also an asset that has the potential to grow in price and that is why Bitcoin is sometimes referred as digital gold. As long as the digital dollars price does not grow above the traditional dollars then it does not have the same characteristics as Bitcoin and should not be a threat to Bitcoin.

[lalabotax]

Isn't this question also for various other CBDCs?
We can see from the digital dollar function itself. is a legal tender. And became the benchmark currency in most countries in the world. But Bitcoin, this not only applies as a currency, but also has value and trust to be something worth investing in. While the dollar, no. This is what makes Bitcoin most likely not to be disturbed by the digital dollar.

[ingiltere]

Not at all. There is a lot of difference between Bitcoin and digital money. For one thing, there is no state control in Bitcoin. Any digital currency that states try to make will be a centralized system. This is completely against Bitcoin's philosophy.
Most of the money used right now is digital anyway. Which one of us carries cash? Everything happens through credit cards and mobile payment systems.
I don't understand why these discussions are still happening. People who understand the philosophy of Bitcoin already know that such initiatives will not replace Bitcoin. I don't see any other currency that threats to Bitcoin. Because Bitcoin didn't come to this stage easily, it didn't gain this trust for no reason. None of the altcoins have even 10% of that trust. Look at what's happening with second place holder Ethereum. How far is it actually in terms of decentralization and trust. That being the case, a centralized digital currency is not even a threat.

[BitcoinMoses]

Digital Dollar is not Decentralized Currency. It is fiat currency. Bitcoin is not fiat currency.
Bitcoin is an electronic cash and the payment system.

Digital dollar will have no impact on Bitcoin.

[suzanne5223]

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 digital US dollar will never be a challenge for the growth of crypto in the US because they both didn't serve the same purpose and the last time I checked the CBDC is always another version of fiat currency but if the Fed misunderstands this there may be a form of challenges for crypto growth in the US.
In the meantime, I hope the US government won't imitate the BTC blockchain concept and go for proof of work.

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

The US digital dollar beings success depends on the idea implemented by the US government but the use of POW cryptographic proof won't make the US digital dollar crypto a success.

[GreatArkansas]

US dollar will still be US dollar, it will be just digitalized, it's like what we have now which is stablecoins, so what's the point they still want to do it as we already experiencing to use a digital us dollar which is stablecoins we have now?
So for me, this is really far threat with Bitcoin as their digital US dollar is pegged with fiat US dollar which we all know the value of it is decreasing over the time.

[Rigon]

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?

The digital dollar will not hurt Bitcoin. Rather, it may be even stronger for Bitcoin. As soon as the digital dollar comes in, they will start trading with Bitcoin and Bitcoin will gain even stronger.As we may have seen before China issued their own currency and banned Bitcoin But there was no damage to Bitcoin, maybe from here I can say that even if the digital dollar is launched, there will be no damage.

[Gallar]

it will not be a serious threat to bitcoin, because even though the US dollar is made as digital money but the function and use will be the same, it is only made digitally, so it will not be a threat to bitcoin, because bitcoin is still considered an asset / investment, rarely who use bitcoin as a means of payment, digital dollars will not be a threat because in terms of usability there is something different.

[adzino]

It is not going to be any threat to bitcoin. Digital dollars won't be decentralized. So people looking for decentralized currency, currency that isn't controlled by the government, currency that they own and no one else has control of will still be using bitcoin.


There are already "digital wallet dollars" and they were never a threat. And then lets be honest, most people invest in bitcoin to make profits. You won't be able to make any profit holding stable digital dollars.

[SheilaF]

Digital dollar are not any threat to bitcoin. In fact, bitcoin can help in promoting digital dollar. Through bitcoin, we can realize the goal of cashless economy. For example, we can purchase online items through bitcoin, and the seller can easily get the digital dollars with low fee. This can make digital dollar successful.

[sunsilk]

No need to think about it being a threat. Bitcoin is volatile while digital dollar has a stable value. While we hold bitcoin, we're all for it until the price of it goes up.

While this digital dollar and others that have the same stagnant value, they'll be used mostly for purchase as it's guaranteed that there will be no volatility issues.

So, the difference of it from bitcoin is totally far and we can still use bitcoin the same as these digital dollar does. But, they can't be the same as bitcoin for being volatile.