How will CBDCs will impact Bitcoin?

[Blawpaw]

CBDCs are coming, and they spell the end of the Private monetary policy as we know it. The list of countries adopting CBDCs is growing at a fast pace:

The Bahamas
Antigua and Barbuda
St. Kitts and Nevis
Monserrat
Dominica
Saint Lucia
St. Vincent and the Grenadines
Grenada
Nigeria

Governments have already understood the sheer potential of the Blockchain to impose Total monetary control.

So, how do you guys think will affect Bitcoin?

[1715467102]

1715467102

[1715467102]

1715467102

[franky1]

to normal fiat people they will just see it as another phone app. like paypal or venmo

certain CBDC are not as "overwatch" as tinfoil hat's proclaim
many of them have like a dozen different commercial banks being the account providers. where the commercial banks do the KYC.
and where within the commercial bank app. there are 3 levels of account
account limits(spendability amount per month) =under $xxx has no KYC
(imagine it like virtual debit card)
then basic kyc for above min salary to below small business amounts. then full KYC for the wealthier/business accounts

of course the currency inside the apps is not going to be deflationary so again its just fiat in a new app

so people will still, much like today want to hedge that inflation via a deflationary asset

[NeuroticFish]

You really need a 101th topic on this? Every week new topics pop up asking about this.
I've linked a very few of them:

https://bitcointalk.org/index.php?topic=5416457.0
https://bitcointalk.org/index.php?topic=5419584.0
https://bitcointalk.org/index.php?topic=5419179.0
https://bitcointalk.org/index.php?topic=5409436.0


Short answer: little to no impact. CBDCs are just another representation of fiat.

[Blawpaw]

Short answer: little to no impact. CBDCs are just another representation of fiat.

Sure, but paper fiat cash is the most anonymous form of value you can find, whereas a CBDC is a representation of fiat paper cash that is fully trackable. So, with heavy regulation in place against cryptos won't this have a negative effect over Bitcoin?

[NeuroticFish]

Sure, but paper fiat cash is the most anonymous form of value you can find, whereas a CBDC is a representation of fiat paper cash that is fully trackable. So, with heavy regulation in place against cryptos won't this have a negative effect over Bitcoin?

Can you buy today anonymous irreversible payment things with your card?
Or, even better, can you withdraw paper fiat from your card?
Also, can you buy Bitcoin with your card or with bank transfer?
Well, same will have to happen with CBDCs too.

CBDCs will be competition for Visa/Mastercard (centralized, fiat related), CBDCs will be competition for stable coins (centralized). Bitcoin (decentralized), as I said, will be pretty much unaffected.

[Jawhead999]

Sure, but paper fiat cash is the most anonymous form of value you can find, whereas a CBDC is a representation of fiat paper cash that is fully trackable. So, with heavy regulation in place against cryptos won't this have a negative effect over Bitcoin?

I'm just wondering how much you can withdraw from your banks without getting asked why you always withdraw your money. Banks will ask you regarding what's the reason you withdraw your money and they're actually already know what have you done with your money, they just want to verify it. Don't forget someone that you've traded can expose your illegal business (if you did for criminal) and there's many CCTV can trace you.

Fiat isn't anonymous and CBDC will not give any impact to Bitcoin.

[franky1]

CBDCs will be competition for Visa/Mastercard (centralized, fiat related), CBDCs will be competition for stable coins (centralized). Bitcoin (decentralized), as I said, will be pretty much unaffected.

i predict it will be Visa/mastercard running it in some fashion

CBDC is not where bank of england do everything for the british CBDC

what will happen is BOE will issue the initial premine of a few trillion CBDC£

smart contract it out to half a dozen commercial banks/payment services
and the commercial banks/services then handle the customer service/supervision stuff, because simple fact and logic there are not enough ministers/senators, civil servants to watch ever ones picnic and coffee purchases.. nor do they want or care to spy on everyone personally

..
if you research the chinese CBDC its not the PBOC thats handling it all. they have distributed the reserves(pre mine) to half a dozen commercial payment services
Alibaba, Tencent, Huawei, JD.com and UnionPay

the structure of the e-yuan
is the PBOC issue new currenct and share it down to the commerical payment services. the commercial services then have their own customers, so the commercial services then do the customer registration part and keep those databases inside the commercial services..

payments flow between the commercial services
if the commercial services find something suspicious they report that to the chinese department that deals with crimes.. not the PBOC and not the PRC
the police then see if its criminally suspicious, to then seek a court order via the court devision. which then gets the cops access to request more personally identifiable information about the individual account holder from the commercial service

oh and guess what folks
china. i said it china's CBDC has it where the payment services have 3 levels of account
amounts under monthly wage spends account level have no KYC. if you want to increase your income/expenditure limit. you can register for simple KYC and if your wealthy or run a business then you have to full KYC

..
its much the same as how the UK/US system works now..
and no, the US/UK system now of normal fiat is not where "government" are sat at computers watching everyones transaction.. they are reactive to reports cent by commercial banks

will people please do your research and use the search function instead of forming a silly opinion and then come in seeking people to agree with an opinion you might already have formed pre ask.

im not siding with anything but just writing what i have found out in my own research and observations.. but i keep seeing silly posts of people with no knowledge forming an opinion about something. asking a question hoping to get an answer that aligns with an opinion they have
 

[tranthidung]

CBDCs are coming, and they spell the end of the Private monetary policy as we know it. The list of countries adopting CBDCs is growing at a fast pace:

You can follow that website, CBDCtracker.org and get more updates and more details about countries that already launched or might launch their CBDCs. There are some main categories: Cancelled, Research, Proof of concept, Pilot, Launched on that website.

Governments have already understood the sheer potential of the Blockchain to impose Total monetary control.

So, how do you guys think will affect Bitcoin?

You are asking about a story between an egg and a chicken. There would be no Bitcoin if there are no fiat currencies and centralization, inflation from them. There would be no CBDCs if there is no Bitcoin.

All of cryptocurrency types will co-exist and they will interact with each other, support each other, compete with other in order to upgrade themselves better and bring more convenience to human.

[sunsilk]

I'm thinking about the same impact that Tether made to bitcoin. When there are new printed Tether in the circulation, it buffs the price of bitcoin.

So in theory, that could be the same for CBDCs as we've got new sets and versions of Tether that might inject a lot of money again to the market. Well, that's what I can think of since it's just another version of a stable coin.

[btc_angela]

I don't think it will have a big impact on Bitcoin. On the contrary, it might bring new set of investors on the market. I mean if people realizes what CBDC is, as government might have total control of everyone as they can be track then perhaps they will shift to crypto such as BTC.

And we don't need to wait though, as far as I know there are countries who are already doing a test pilot and so far we are not affected by it in any form.

[DaveF]

Agreeing with NeuroticFish that this has been talked about and talked about over and over.

But, I was discussing this the other day with some other people and one of them pointed out that there is no answer to this question other then:

'It depends where you are' Most of the places listed in the OP are smaller nations. If say picking on a random country on the map...Argentina....did it that would have a different impact then if say Canada did it then if the Philippines did it.

So, thinking about it the answer is, there is no answer.....

-Dave

[pooya87]

Agreeing with NeuroticFish that this has been talked about and talked about over and over.

But, I was discussing this the other day with some other people and one of them pointed out that there is no answer to this question other then:

'It depends where you are' Most of the places listed in the OP are smaller nations. If say picking on a random country on the map...Argentina....did it that would have a different impact then if say Canada did it then if the Philippines did it.

So, thinking about it the answer is, there is no answer.....

-Dave

I disagree. It doesn't matter on the location, what matters is the "HOW". For example when PayPal, credit cards, debit cards or even bitcoin were created they didn't change anything in the existing monetary system. You can and do still use cash and all existing methods are usable, the only difference is that now you have multiple options to choose from depending on the level of privacy, security and convenience you need.

Most probably CBDC will be another extra options on top of existing ones that won't change a thing in existing options.
However, HOW they enforce its usage makes the difference. If some government (be it Argentinean or Canadian government) decided to go full dictator mode and force everyone to use only CBDC and nothing else then it would be different than if they were suggesting it as an extra option with "benefits"(!) that you could freely choose to use.

[fuguebtc]

Sure, but paper fiat cash is the most anonymous form of value you can find, whereas a CBDC is a representation of fiat paper cash that is fully trackable. So, with heavy regulation in place against cryptos won't this have a negative effect over Bitcoin?

I'm just wondering how much you can withdraw from your banks without getting asked why you always withdraw your money. Banks will ask you regarding what's the reason you withdraw your money and they're actually already know what have you done with your money, they just want to verify it. Don't forget someone that you've traded can expose your illegal business (if you did for criminal) and there's many CCTV can trace you.

Fiat isn't anonymous and CBDC will not give any impact to Bitcoin.

Fiat is not completely anonymous but it can still be anonymous, just like criminals use fiat to launder money and do their evil deeds without being detected by the police. But if we get rid of fiat completely and replace it with CBDC, things can be very different because the government can control everything even our smallest actions.

But it is true that CBDC cannot affect bitcoin because in my opinion bitcoin is not a currency but an asset more like gold, but regulation will affect bitcoin.

[tranthidung]

Fiat is not completely anonymous but it can still be anonymous, just like criminals use fiat to launder money and do their evil deeds without being detected by the police. But if we get rid of fiat completely and replace it with CBDC, things can be very different because the government can control everything even our smallest actions.

But it is true that CBDC cannot affect bitcoin because in my opinion bitcoin is not a currency but an asset more like gold, but regulation will affect bitcoin.

Both fiat currencies and CBDCs are traceable but with CBDCs and blockchain technology, governments can have more easily to do their works.

With fiat currencies, in countries with good laws and regulations, their governments can have enough data to trace flow of your money and can more easily to detect money laundering. This is a good example on how regulations can contribute to help society better.

After the Terra and FTX collapses and some related entities, I believe more regulations will be executed soon but it is good for cryptocurrency and blockchain ecosystems in future.

[DeathAngel]

I don’t think CBDC’s will negatively impact bitcoin at all. If anything it’ll probably push people towards bitcoin. CBDC’s are controlling & restrictive, where as bitcoin is great for people to control their own wealth.

Nobody wants the government being able to control their shopping & what they spend. CBDC’s are one step closer to social credit scores & literally nobody wants that. I suggest you buy bitcoin before CBDC’s come in & governments ban you from buying bitcoin.

Bitcoin is the future, CBDC’s are restrictive. Do not let anybody have the chance to stop you spending your money how you want to. Bitcoin is empowering & governments don’t like that.

[dimonstration]

Sure, but paper fiat cash is the most anonymous form of value you can find, whereas a CBDC is a representation of fiat paper cash that is fully trackable. So, with heavy regulation in place against cryptos won't this have a negative effect over Bitcoin?

I'm just wondering how much you can withdraw from your banks without getting asked why you always withdraw your money. Banks will ask you regarding what's the reason you withdraw your money and they're actually already know what have you done with your money, they just want to verify it. Don't forget someone that you've traded can expose your illegal business (if you did for criminal) and there's many CCTV can trace you.

Fiat isn't anonymous and CBDC will not give any impact to Bitcoin.

I think he mean the paper cash transaction from person to person unless someone will identify the fingerprint of the owner which makes them trackable but I do agree on logic with paper cash deal since its a physical circulation which no one monitor the flow from person to person.


Back to the topic, Many discuss this before when stablecoin first introduce that it will be affected Bitcoin and look exactly what happening on crypto market by just Tether manipulating its supply.  I wonder what will the implications if USDT became rouge. I don’t want to completely ignore CBDC but let’s not worried about until it was already making some noise in the market.

[Smartvirus]

of course the currency inside the apps is not going to be deflationary so again its just fiat in a new app

This is just the right way to look at it. I think there is really nothing new about the whole CBDC system from one having a local bank mobile bal and following up on his day yo day transactions. It'd as normal as it gets and for me, I doubt I would have any reason to key into the CBDC idea, I still see it to have nothing to offer other than being some fiat in an app.
Without operating the app to see what it's enter phase has to offer or the services there in, I would expect it to create a room for swapping and trading currencies else, what they only archive is some virtual fiat and nothing more.

[bittraffic]

I do think CBDC will be massively used compared to cryptocurrency and in some cases, people will also be using CBDC to buy cryptocurrency as it would be allowed also.

to normal fiat people they will just see it as another phone app. like paypal or venmo

certain CBDC are not as "overwatch" as tinfoil hat's proclaim
many of them have like a dozen different commercial banks being the account providers. where the commercial banks do the KYC.
and where within the commercial bank app. there are 3 levels of account
account limits(spendability amount per month) =under $xxx has no KYC
(imagine it like virtual debit card)
then basic kyc for above min salary to below small business amounts. then full KYC for the wealthier/business accounts

of course the currency inside the apps is not going to be deflationary so again its just fiat in a new app

so people will still, much like today want to hedge that inflation via a deflationary asset

This no KYC is probably just from the beginning but after a few years of adoption, they will be asking KYC. Nonetheless, CBDC is also here to stay.
Only those with tinfoil will keep hiding thier crypto unlinked to thier CBDC app account.

[The Cryptovator]

CBDC, in my personal view, will assist Bitcoin. It will have no effect on Bitcoin. We are having some issues with Bitcoin trades locally, such as p2p where Bitcoin is not legal. CDBC would make trading more efficient and faster. Centralized coins, which are infrequently controlled by the government, will not compete with decentralized currencies such as Bitcoin. So I'm positive about CDBC. At the very least, the government recognizes the significance of Bitcoin.

[Captain Corporate]

People do not realize what CBDC really is, and that's why they are so afraid of it. The reality is that it's something simple, it's USDT or BUSD basically but controlled by the government. First of all, when we get in and out of exchanges KYC means we are already tracked, which means when you turn your USD into USDT that means you are already tracked. So instead of trusting a company in the Bahamas and buying usdt, or trusting CZ and buying busd, you will trust the American government and buy their CBDC instead for example. I still wouldn't trust the nations listed in OP's message, but if a big nation does it, then I will trust it.