Will digital dollar be a threat to bitcoin?

[Flexystar]

Most funny statement I have ever read. That's compulsory failure from white house and it's vision regarding the digital dollar. USA is country where most of the old people live as compared to young minds. They respect their traditional ways of banking and that's cash! I am not at all sure how they gonna implement the digital dollar if the main customer that is their citizens are not going to use it anyways?

El Salvador, the country in central America is big flop example for this one. It was declared as bitcoin acclimatized country, but sooner we saw what happened with the response from the locals. They don't want solutions for the existing ecosystem, they want liberalization of wages, employments, health faculties and much more.

Implementing Digital Dollar means nothing to these things but only way to get over bitcoin. Better they spend the money for improving day to day lives.

[Fivestar4everMVP]

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

Though I am not trying to compare Nigeria to USA, but it might interest you all to know that Nigeria has tried a thing like this, but it didn't succeed, the government of nigeria in a bid to stop its citizens from using crypto currencies created a digital version of the Nigerian naira and called it e-naira, but not only did this fail, it failed woefully, today, I can't find one person that's using this as a means of transaction, it's either crypto or normal (paper) fiat currency.

I see USA is trying to take the same step, I highly doubt it will succeed, any currency that have the control of the government can never be compared to that which is decentralized.

[Abiky]

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.

No Fiat currency will ever be able to threaten Bitcoin's existence. That's because Fiat (whenever digital or physical) is centralized, whereas Bitcoin is not. As you've said before, only a complete shutdown of the Internet would be able to stop Bitcoin for good. But we all know this is technically impossible to achieve. A digital dollar would only benefit the US government and the central bank (The Federal Reserve) than individuals themselves. It will be the end of privacy for good since the new CDBC will give the government more power over people's finances. Paper money will be phased out for good, leaving us only with truly-decentralized cryptocurrencies such as Bitcoin and Monero. As long as people have a choice, there should be nothing to worry about. Just my opinion

[KaliLinux]

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?

Regardless of which nomenclature is now used by the US government, this is no different from the same CBDC we have seen some other countries delving into and has nothing to do with Bitcoin and I also believe has no effect whatsoever on BTC. Is this digital fiat going to be having different inflation effect from its normal fiat currency? or maybe because it is tagged digital? I don't see any difference from the digital services the Banks already provide that any digital currency (CBDC) will change to make it more important to have any edvrse effect on Bitcoin. 

[LUCKMCFLY]

I would never think that the digital dollar could be a threat to Bitcoin, because obviously the dollar would not have any support, even though they say yes, and they have proof of it, it is not like that, it is like saying that they now have low support gold bullion, I think everything is like a mirage where there has always been a clear hegemony of the dollar after the second world war, where the USA was consolidated as a world power, from then on they are the strongest currency, so no would mean no fear for Bitcoin, it's simple, bitcoin is managed through supply and demand, and all its ways like whales, people's emotions, institutions, and they are not controlled by governments or banks, I think that is the best guarantee.

[YUriy1991]

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

My opinion No one will know the true value of digital dollars for quite some time to come. maybe the market experiment had just begun, and it was hard to believe that it could be called a failure so quickly.

There is room for a lot of changes in the near future. Having said that, there are also many questions remaining, namely which coin will rise to the top? How will they compete with other cryptocurrencies? Will they be any different from Bitcoin?

I think that's normal especially for Bitcoin.

[BobK71]

I would never think that the digital dollar could be a threat to Bitcoin, because obviously the dollar would not have any support, even though they say yes, and they have proof of it, it is not like that, it is like saying that they now have low support gold bullion, I think everything is like a mirage where there has always been a clear hegemony of the dollar after the second world war, where the USA was consolidated as a world power, from then on they are the strongest currency, so no would mean no fear for Bitcoin, it's simple, bitcoin is managed through supply and demand, and all its ways like whales, people's emotions, institutions, and they are not controlled by governments or banks, I think that is the best guarantee.

Me too, I never thought that when dollar rises crypto currency will be very affected so much, the reason why we are feeling this thing is because of the best market, we're still in the bear market, and I belive once it is done crypto coins prices will goes up and can have a good start again. Web3 is here, few more days or weeks we can see how it will affect the market price

When the dollar price increases, other countries experiencing inflation. As a result, the price of people's daily goods increases. Financial institutions raise interest rates. Investors are discouraged from investing. Due to which movement is not seen in crypto. The Ukraine-Russia war has had a major impact on economies around the world this year. And if the war continues, it will be difficult for crypto to go into a bullish trend. But digital dollar has nothing to do with crypto. Both positions are different.

[Wiwo]

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.

For the fact that the digital dollar will have an intrinsic value, it becomes a no contender to Bitcoin, since Bitcoin has a value that constantly changes against the dollar, so the characteristic of Bitcoin made it unique and able to be called an asset and that is why most people prefer Bitcoin as an asset more than a currency, the only time Bitcoin is most preferred for the transaction as a currency is when Bitcoin is the only alternative to faint in some incidents.

[8rch7]

In my personal opinion, digital dollars will not pose a threat to bitcoin at all, because digital dollars issued by the US government are still the same as dollars issued by federal banks, digital dollars are the same as US paper and coins used. now, in the previous year China also banned bitcoin miners and they tried to create their own coins but the proof is that until now bitcoin is still the main choice of investors, so we don't need to be afraid and don't need to worry even though the government tries to create dollars in digital and issue their own coins but believe me it will never be a threat to bitcoin.

[RealMalatesta]

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.

No Fiat currency will ever be able to threaten Bitcoin's existence. That's because Fiat (whenever digital or physical) is centralized, whereas Bitcoin is not. As you've said before, only a complete shutdown of the Internet would be able to stop Bitcoin for good. But we all know this is technically impossible to achieve. A digital dollar would only benefit the US government and the central bank (The Federal Reserve) than individuals themselves. It will be the end of privacy for good since the new CDBC will give the government more power over people's finances. Paper money will be phased out for good, leaving us only with truly-decentralized cryptocurrencies such as Bitcoin and Monero. As long as people have a choice, there should be nothing to worry about. Just my opinion

The idea that there would be a "threat" is the fact that we are talking about something that would be a problem for crypto only in the investment amount, not in a controlling way. So, if there is a digital dollar, a cbdc or whatever you want to call it, that means there could be some money that could have gone to bitcoin, could end up with that.

I am not saying this would be terrible for us, but it could potentially postpone the bull run as well. It’s not a "threat", because both will coexist peacefully and there is no problem with that, but at the same time we are talking about something that would postpone the bull run so it's not a great thing neither.

[Sterbens]

In my personal opinion, digital dollars will not pose a threat to bitcoin at all, because digital dollars issued by the US government are still the same as dollars issued by federal banks, digital dollars are the same as US paper and coins used. now, in the previous year China also banned bitcoin miners and they tried to create their own coins but the proof is that until now bitcoin is still the main choice of investors, so we don't need to be afraid and don't need to worry even though the government tries to create dollars in digital and issue their own coins but believe me it will never be a threat to bitcoin.

That is one of their ways to rival bitcoin, but the fact is that they will not be able to do that, in fact bitcoin will always be a favorite for many people. Most importantly, maybe this will be the beginning of the road for those who are new to bitcoin. This will happen over time, because sooner or later many people will realize the real purpose of the government in creating digital dollars, that is to say copying the way bitcoin works.

[CryptoApeKing]

I don't see how and why a government would allow cryptocurrencies to overtake its own currency as the medium for exchange for goods and services within the global economy.  There are many reasons for this. However the idea of allowing the Government Currency to hedge against BTC is an interesting idea.  We would be going back to the days before the FED was created.   

[Abiky]

The idea that there would be a "threat" is the fact that we are talking about something that would be a problem for crypto only in the investment amount, not in a controlling way. So, if there is a digital dollar, a cbdc or whatever you want to call it, that means there could be some money that could have gone to bitcoin, could end up with that.

I am not saying this would be terrible for us, but it could potentially postpone the bull run as well. It’s not a "threat", because both will coexist peacefully and there is no problem with that, but at the same time we are talking about something that would postpone the bull run so it's not a great thing neither.

Most people will prefer the Digital Dollar over Bitcoin because of convenience. But that doesn't mean Bitcoin will lose interest among investors and traders alike. It's part of a new asset class that's here to stay for a very long time. Just like Gold, Bitcoin will prove to be a reliable store of value anyone can use to protect themselves against the negative effects of inflation. CBDCs (digital Fiat currencies) won't pose a threat to Bitcoin no matter how you see them thrive in the mainstream world. There will be a separation between the centralized world of banks and the decentralized world of crypto/Blockchain tech.

The fact that the US and other countries are announcing the creation of their own digital currencies, means that Bitcoin has already won the war. Governments had no choice but to do this to help prevent Bitcoin from taking over the world. It doesn't matter if Bitcoin never becomes the world's reserve currency, as long as it stays true to its core values of decentralization and censorship-resistance. Just my thoughts

[witcher_sense]

I don't see how and why a government would allow cryptocurrencies to overtake its own currency as the medium for exchange for goods and services within the global economy.  There are many reasons for this. However the idea of allowing the Government Currency to hedge against BTC is an interesting idea.  We would be going back to the days before the FED was created.   

We all have become so accustomed to permissioned forms of money - government-issued money - that it became almost impossible for us to conceive of a world based on a permissionless system where all interactions between individuals can be conducted without the violent interventions of those who have power. Yet, with the invention of the bitcoin decentralized system, we are getting closer and closer to a world where governments and money are separated, which means no single entity will have the power to dictate economic course or to print up money out of thin air for no cost to enrich whoever is close to that printer. The main reason why bitcoin may succeed in helping people to throw off the shackles of the system based on fiat money is that it is completely out of reach for those having power: no matter how wealthy you are or how many friends in high places you have, you won't be able to take away bitcoin from people holding their own private keys, you won't dilute their savings, and you won't enslave them by selling empty promises. People didn't ask for the government's permission to generate a random number, they will also not ask for permission to send these numbers to whoever they want because a decentralized system incentives people to behave in a decentralized way.

[Abiky]

We all have become so accustomed to permissioned forms of money - government-issued money - that it became almost impossible for us to conceive of a world based on a permissionless system where all interactions between individuals can be conducted without the violent interventions of those who have power. Yet, with the invention of the bitcoin decentralized system, we are getting closer and closer to a world where governments and money are separated, which means no single entity will have the power to dictate economic course or to print up money out of thin air for no cost to enrich whoever is close to that printer. The main reason why bitcoin may succeed in helping people to throw off the shackles of the system based on fiat money is that it is completely out of reach for those having power: no matter how wealthy you are or how many friends in high places you have, you won't be able to take away bitcoin from people holding their own private keys, you won't dilute their savings, and you won't enslave them by selling empty promises. People didn't ask for the government's permission to generate a random number, they will also not ask for permission to send these numbers to whoever they want because a decentralized system incentives people to behave in a decentralized way.

With CBDCs on the brink of becoming a reality, I think the hopes of Bitcoin "ruling" the world will be long gone. That's because governments will never allow a decentralized cryptocurrency to take away their power over people's finances. The new Digital Dollar will give the US more power than ever, as it will be able to have complete control over each transaction performed on the ledger. Not only will the FED and the US government be able to freeze or control access to your money, but they will also be able to have a complete overview of your spending habits. Everything will be visible by these entities, putting an end to privacy for good.

Don't except them to be friendly towards Bitcoin and other cryptocurrencies, especially when they'd want to force people to use their "new digital cash system". Bitcoin will survive thanks to its decentralized and censorship-resistant design, but not many people will use it because they will be afraid of government's intervention. There's a dark future ahead of us, so we should be prepared for the worst. Just my opinion

[Vzae]

I can't judge this as a threat to bitcoin. CBDC won't change overnight, USD CBDC might launch successfully and nothing can stop it but it won't pose any threat at all to bitcoin.

[$anounimus$]

I think considering digital dollars as a complement to cryptocurrencies rather than as a challenge. Digital dollars are more traceable, more centralized, and easier to cash out by governments compared to bitcoin.

This could make it more attractive in some ways to consumers who prioritize these features. It is also possible that people will use one or both types of currency depending on their preferences, needs, and concerns.

Simply don't be too discouraged that the government will soon have its own digital dollar; this could eventually prove to be a good thing for crypto enthusiasts.

[8rch7]

I can't judge this as a threat to bitcoin. CBDC won't change overnight, USD CBDC might launch successfully and nothing can stop it but it won't pose any threat at all to bitcoin.

I also strongly agree with your opinion, although digital dollars are managed directly by the government and the government also plans to use digital dollars as a tool to eliminate bitcoin, but I firmly believe digital dollars will never be able to compete with bitcoin, which certainly digital dollars will not at all become a threat to bitcoin, so I never thought bitcoin could be defeated by digital dollars issued by the government.

[Davidvictorson]

There is a place for the dollar despite it numerous problems and personally, I think that a digital dollar is the worst idea out there especially if the motivation is to topple bitcoin instead of making it work along side. My fear is that once the government has control of your currency again especially in through CBDC, they can cut you off or take it all at the push of a button. Additionally, the idea that the government would create a digital currency for free is absurd and naive.

[BinarySumo]

I don’t think so. People view Bitcoin as an investment. And I think, dollar has its own value. People who are not comfortable with bitcoin or don’t know what it is would be more interested in the digital dollar.