Will digital dollar be a threat to bitcoin?

[CryptoYar]

Will digital dollar be a threat to bitcoin?

Nope, digital dollar will be controlled by the central bank whereas Bitcoin is the exact opposite, It can not be controlled by any central authority.

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.
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Bitcoin is 56x more energy efficient than the current banking system. I think the problem is not energy consumption, but the financial freedom that bitcoin offers.

A recent peer-review white paper finds that Bitcoin's blockchain uses almost half the annual energy of previous estimates. The Valuechain publication also shows that Bitcoin is 56 times more energy efficient than the current banking system.

Source

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[UmerIdrees]

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?

USDT ,USDC and all these stablecoins are also sorts of digital dollars though the US government does not recognize them. In case US government came with its own digital dollar, it will have no effect on the bitcoin. I would say that bitcoin will become even stronger since we know that US dollars won't be inflation free and can be produced as many as they like anytime. 

The effect of digital US dollar would be that other countries will also come up with their own stable coins, creating a mess of useless coins 

[Pmalek]

The dollar is already digital. Cash isn't used as much as it was in the past and future societies will be cashless ones. The only thing those is power have to do is to create a system with stricter control that would allow them to govern you by fear. If you aren't in line with their agenda, you can be punished by not being allowed to use your digital and centralized coins the way you want to.

For something like that to happen, you have to get rid of the competition. What is the competition to a fully controlled government coin? The one that is decentralized and trustless.

But they are not going to ban it just like that because they don't want to look like the enemy. They want you to request for bitcoin to be banned because it's a hazard for the environment, it's used for money laundering, financing terrorism, and all other sorts of illegal activities. The negative portrayal of Bitcoin will continue to show the people that it's not in their interest to use this currency. And if and when enough interest is generated and someone proposes that we should maybe ban it, the majority will get on board.

Stay educated. In the name of the late George Carlin, don't trust anything your government tells you. Nothing. 0%, nada!       

[taufik123]

Bitcoin is 56x more energy efficient than the current banking system. I think the problem is not energy consumption, but the financial freedom that bitcoin offers.

A recent peer-review white paper finds that Bitcoin's blockchain uses almost half the annual energy of previous estimates. The Valuechain publication also shows that Bitcoin is 56 times more energy efficient than the current banking system.

Source

but they still think that bitcoin is a major problem of big energy use and masks the real big energy use. Bitcoin becomes the scapegoat to cover it all. Financial freedom is a disaster for governments because they cannot regulate it. Bitcoin is a financially free digital asset that is full of pros and cons, but bitcoin will survive and cannot be threatened by anything including the digital dollar that continues to emerge. Bitcoin stays on track and digital dollars or stablecoins stay on track too. The government cannot fully regulate.

[Oasisman]

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?

Digital dollar sounds like it has been existing already with all the digital and online transactions using various types of E wallet that converts your physical fiat digitally. This might probably work for the convenience of every means of online payment. However, Bitcoin is still different than this digital dollar, as Bitcoin could either be used as a currency or an investment. Dollar, may it be fiat or digital will eventually deflate, while Bitcoin will continuously rise and will avoid deflation. 

[Ozero]

The digital dollar will not pose an immediate threat to bitcoin because the digital dollar is an improved form of cashless dollar payments. The digital dollar can really compete directly with non-government stablecoins because they will have so much in common. Moreover, states may further prohibit the circulation of non-state stablecoins due to such competition.

[BobK71]

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?

Digital dollar sounds like it has been existing already with all the digital and online transactions using various types of E wallet that converts your physical fiat digitally. This might probably work for the convenience of every means of online payment. However, Bitcoin is still different than this digital dollar, as Bitcoin could either be used as a currency or an investment. Dollar, may it be fiat or digital will eventually deflate, while Bitcoin will continuously rise and will avoid deflation. 

It can be said that digital dollars have been used since before the advent of Bitcoin. Generally we consider digital form of fiat money as digital dollar. Bitcoin or cryptocurrency emerged after this digital dollar. But that doesn't affect Bitcoin or Cryptocurrencies because they are two different things. Both are stands in their own position. Where cryptocurrencies are completely different which is run by the use of blockchain technology.

[kryptqnick]

The topic of digital dollar was discussed many times. We already have USDT, and it doesn't seem to take away Bitcoin's power. USDT is not under control of the government, and IMO it makes it better, attractive to peope around the world. The USA is a big country, but many people within it would be skeptical about the digital dollar because they prefer the one they already have, and people outside the US might be reluctant to use something that is under lots of control of a particular state which they might not trust or like.
Furthermore, lots of people are into Bitcoin because of its growth. The digital dollar would aim at stability, not growth of value, so it's a completely different thing even in this regard and thus Bitcoin users won't be tempted to switch at all.

[Coyster]

maybe in the future the Central Bank Digital Currency or CBDC will success but like all other said it will be centralized and in my opinion it might not transparent as crypto did, and the other that it will not a threat for a bitcoin and I think this will be the opposite people maybe get more attracted of cryptocurrency world

Quite a lot of people are already allured to decentralized cryptocurrencies like Bitcoin, and also centralized non-government crypto in general, mind you that in no way is the government attempting to create CBDC's to allure people to crypto, or to encourage people to use crypto, CBDC's are created in a bid to reduce the number of people that are using decentralized crypto, a part of me has always felt that the campaign for CBDC's is basically in direct competition to Bitcoin.

Having said that, whilst CBDC's don't function like Bitcoin, and what goes on with it can't directly affect Bitcoin, but the activities of those who created CBDC's can affect Bitcoin, and these people are no other than the government, they'd definitely strengthen their campaign against Bitcoin, trying to dissuade their people from using it, but rather they should trust the crypto that is issued and controlled by them.

Bitcoin has always risen above government manipulation, and i am pretty sure that the case of CBDC's will absolutely be no different.

[Abiky]

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?

Neither the Digital Dollar nor the Digital Yuan will be a direct threat to Bitcoin. That's because Bitcoin's decentralized and censorship-resistant design will make it hard (if not impossible) for governments to carry on with their agenda of forcing the use of Fiat for good. There will always be a way to access Bitcoin even if the government bans its use (consider how there are people mining and using Bitcoin in China even though it was "banned" by the government some time ago). CBDCs like the Digital Dollar and the Digital Euro will only strengthen Bitcoin's adoption in the mainstream world. The fact that central banks are responding with digital currencies of their own, tells us that Bitcoin is being taken seriously among those who previously ignored it.

I think the Digital Dollar would be successful because the pandemic has accelerated the adoption of digital payments by a large margin. People are used to paying with their phones or credit/debit cards without ever touching paper money, so the transition to digital Fiat should be a no-brainer. If the US acts quickly, it may be able to hold the Dollar's (USD) position as the reserve currency of the world. We'll see what'll happen after the Digital Dollar is launched for public use. Just my thoughts

[Agbe]

Well I do not have much to say about this all what I to say is that, as far as I know, dollar can not be a challenge to bitcoin. Let me use my country as a. example, dollar is very high in my country but I or we are even angry that why we are using dollar which is not even used to but garri in the market but this the garri that we can used dollar to is very costly because of the high rate of dollar. Now coming to America, dollar can not be used to trade another dollar because it does not have bullish and bearish markets, And also dollar is a stable currency which is controls by Americans government but bitcoin is a decentralized digital currency that does not controlled by any. Bitcoin can be trade itself that is p2p trading because it grows. You can but bitcoin and store it to grow but dollar is stagnant. Therefore, it is bitcoin that has a bigger threat to dollar and not the digital dollar that can be a threat to bitcoin but bitcoin does.

[_BlackStar]

Well I do not have much to say about this all what I to say is that, as far as I know, dollar can not be a challenge to bitcoin. Let me use my country as a. example, dollar is very high in my country but I or we are even angry that why we are using dollar which is not even used to but garri in the market but this the garri that we can used dollar to is very costly because of the high rate of dollar. Now coming to America, dollar can not be used to trade another dollar because it does not have bullish and bearish markets, And also dollar is a stable currency which is controls by Americans government but bitcoin is a decentralized digital currency that does not controlled by any. Bitcoin can be trade itself that is p2p trading because it grows. You can but bitcoin and store it to grow but dollar is stagnant. Therefore, it is bitcoin that has a bigger threat to dollar and not the digital dollar that can be a threat to bitcoin but bitcoin does.

Note that this is not about fiat dollars or any other fiat currency, but this thread is about the other possibilities that digital dollars could bring to a new form of government-owned payment system and will it be a threat to bitcoin?

I've already said that the traditional fiat payment system we've been using has had many setbacks, including a reduction in customer trust in banks. But what will be the impact of digital dollars or the like on bitcoin, that is the main point.

[ejd59005]

Honestly, isn't the dollar mostly digital as it is right now? Most people I know, me included use debit or credit cards in place of cash. Literally using 'digital dollars'

I see what you mean though. Could the government make up their own digital currency and 'force' people to use that while trying to push bitcoin out because of the energy usage? That's actually an interesting concept. They push out BTC because of the amount of energy we're consuming while some states like Texas ran out of energy last winter. I really don't know what they'd do honestly, but it does seem like they really want to limit the amount of energy being consumed, like ETH has done.

Either way I think BTC is here to stay.

[_BlackStar]

Honestly, isn't the dollar mostly digital as it is right now? Most people I know, me included use debit or credit cards in place of cash. Literally using 'digital dollars'

Yes, it is digital fiat that has nothing to do with blockchain. But I can think the digital dollar the OP is referring to is the digital dollar the government is planning to go through CBDC where the concept is still centralized but maybe integrated with one of the blockchain.

I see what you mean though. Could the government make up their own digital currency and 'force' people to use that while trying to push bitcoin out because of the energy usage?

That can be done through the CBDC, but the government will not be able to encourage bitcoin users to stop using bitcoin. CBDC is government owned currency where they have central authority, so it is just another alternative to government currency to get more usage

Either way I think BTC is here to stay.

Of course, bitcoin to stay - CBDC will not negatively affect the popularity of bitcoin.

[Abiky]

Honestly, isn't the dollar mostly digital as it is right now? Most people I know, me included use debit or credit cards in place of cash. Literally using 'digital dollars'

I see what you mean though. Could the government make up their own digital currency and 'force' people to use that while trying to push bitcoin out because of the energy usage? That's actually an interesting concept. They push out BTC because of the amount of energy we're consuming while some states like Texas ran out of energy last winter. I really don't know what they'd do honestly, but it does seem like they really want to limit the amount of energy being consumed, like ETH has done.

Either way I think BTC is here to stay.

Yes. But even though the US Dollar is digital through the use of credit/debit cards, it doesn't live on a Blockchain or Distributed Ledger that's controlled by the government and the Federal Reserve. The transformation will be completed when paper money is phased out for good and the FED launches a CBDC which resembles Bitcoin in every way (except that it won't be decentralized). While a digitized version of the US Dollar won't be a direct threat to Bitcoin, it will certainly give more power to the government over people's finances. A CBDC would be the perfect tool for a full-fledged surveillance state. It'll be the end of privacy as we know it. Most people don't care about privacy anyways, so they will quickly adopt the Digital Dollar even if that would lead them to a "certain path of death". Just my opinion

[JohnBitCo]

The only reason if there is any, for digital dollar to be a threat to bitcoin will be it having characteristics (blockchain) features as that of bitcoin. Apart from that, I don't see it as a threat to bitcoin. The government will still control and own the digital dollar, which can be regulated and reversed, unlike bitcoin. The dollar is a worldwide currency that is used for various exchange purposes and cross-border payments, thus its digitization will benefit the government but will never pose a threat to bitcoin.

In order for the digital Dollar to become a threat for bitcoin it has to become completely decentralized and also it has to be not in control of any government. Since digital dollar will be controlled by the US government there is no way to dollar can become a threat to bitcoin. I don't understand why people are comparing digital dollar with bitcoin.

[ChiBitCTy]

This is a topic that has already been heaving debated and as your post mentions, something that China had already rolled out, some time ago in fact. The truth is the same principles apply as to why neither will be any sort of legitimate contender to bitcoin and that’s because they are both centralized currencies and that’s literally all that needs to be said about it.

[worle1bm]

The actual competition depends on the usage of people and government are still exploring the blockchain technology to develop these digital CDBC but it's not a threat to bitcoin as we have seen in China digital yuan case also.The people will keep utilising btc as mode of investment and payment in the future with the inflation rising.The digital dollar is just another form of currency only subject to government control so how come it can compete with decentralised coin? So we can say that btc growth is determined despite of these relentless efforts by governments.

[rat03gopoh]

Threatened in what?
If the internet and electricity around the world suddenly stopped, then that would be a real threat to bitcoin. Centralized and decentralized aren't competition. In the end, all payment systems will become digital to achieve transaction efficiency, the presence of CBDC is a future innovation that however requires support. Whether you wanna use it or not, it's just a matter of taste.

[BlockChainMentor]

Powell said he will need approval from white house and congress for process with digital dollar although it will not harm bitcoin after approval.