Is Digital dollar a threat to Bitcoin ?

[krishnaverma]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

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[Upgrade00]

Rather than spamming irrelevant articles across the forum you could add some extra information or thoughts you have on the topic it discusses. That would make more for a discussion than simply posting a line and a one line follow up.

There's also a press board where you can post links, but only reserved for "Notable press hits".

[BenCodie]

Rather than spamming irrelevant articles across the forum you could add some extra information or thoughts you have on the topic it discusses. That would make more for a discussion than simply posting a line and a one line follow up.

There's also a press board where you can post links, but only reserved for "Notable press hits".

+1

Though to answer the question in the title - no - Bitcoin is a threat to all fiat currency and always will be as it is superior. No form of fiat currency will ever be a threat to Bitcoin. They will try to attack it, as they have hundreds or even thousands of times...but they will never beat it.

If anything, digital dollar is a step to mass adoption. As people start to learn how to use a digital dollar they will eventually see the added benefits of using a blockchain like Bitcoin, and will be able to make the transition in comparison to trying to transition from banking apps or cash.

[mk4]

It is a temporary "threat" knowing in a way that a lot of uneducated/misinformed people will think that a CBDC will be a threat to bitcoin, hence having less retail interest in the markets in the short-mid term after a CBDC gets released.

Long term though? Definitely not.

[freedomgo]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

Not really, I'd rather say that bitcoin is more of a threat to the digital dollar than the other way around.

Anyway, that doesn't really matter because e-dollar/digital dollar and bitcoin have their respective and distinct use why they were created in the first place. People also have their own reason why would they choose bitcoin over e-dollar or e-dollar over bitcoin. This digital dollar is of course controlled by the government, so that will be useless when it comes to guarding ourselves up when it comes to inflation but if in terms of stable coins, digital dollar has the advantage because it doesn't move that much and has less risk compared to the volatility of bitcoin.

[krishnaverma]

Rather than spamming irrelevant articles across the forum you could add some extra information or thoughts you have on the topic it discusses. That would make more for a discussion than simply posting a line and a one line follow up.

I will try to add more information in OP from now on.

But, it will be a positive development for bitcoin and encourage more people to use bitcoins.

How does that happen ? Isn't it more like competition? The people with traditional thinking might go with government backed project.

[pooya87]

"Digital dollar" has existed long before bitcoin did in centralized form and it is not going to change. Each time you use Paypal, credit cards, internet banking, online payments, etc. you are using digital dollar! It does not fall under the same category as bitcoin simply because it is centralized and because of that talking about "threats" is like comparing apples and oranges.

that-handles-17-million-transactions-per-second

That's pathetically low for a centralized payment system.

[Yatsan]

Not even close. Different concepts and different advantages; one is stable and one is volatile. USD based currencies are stable ones while Bitcoin is highly volatile generating profit as an investment. I've said not even close because investors are using these currencies differently; Bitcoin more of an asset while usd based digital currency are for daily transactions, so I don't think one fears another.

Rather than spamming irrelevant articles across the forum you could add some extra information or thoughts you have on the topic it discusses. That would make more for a discussion than simply posting a line and a one line follow up.

I will try to add more information in OP from now on.

But, it will be a positive development for bitcoin and encourage more people to use bitcoins.

How does that happen ? Isn't it more like competition? The people with traditional thinking might go with government backed project.

Not a competition but more of coexistence I guess. The only difference is decentralization and centralization of each. On my end especially when trading, I do prefer using usdt as a mode of payment because it is more convenient to use. But I also doubt one would promote the other currency.

[Hispo]

I think we have already talked about the influence of the CBDCs on Bitcoin on other threads, but anyways...

I must admit that 17 million transactions is an impressive number, but it would not have much influence on Bitcoin since we are talking about two different kind of assets: Centralized and intrusive versus Decentralized and neutral.
I still believe Bitcoin will be okey, as long as the protocol is maintained properly.  

[bittraffic]

The Chinese CBDC wasn't very successful at all. We know China has an authoritarian government that will force its people to use government platforms but it seems not very effective for the Chinese since they are still using the Wechat and etc. There were reports that the Chinese are not using CBDC anymore.

In Nigeria as well, it's also not working, and its due to the adoption of BTC in the country. There could be any different result in any other place or country.

[Wimex]

I don't think it's possible, they are two totally different things, the dollar, even if it is digital, is still controlled by an institution, and depending on how it is managed, it can generate inflation, directly affecting the currency and the community, on the other hand, bitcoin is free of state restrictions, and despite being volatile, it generates many opportunities for the user, such as having full control of their capital or having much more solid growth opportunities.

[Davidvictorson]

It's a tricky one, but I absolutely believe that the digital dollar poses a threat to bitcoin. There is a possibility that the federal government will enact absurd taxes and restrictions. There are a number of ways in which this could negatively impact bitcoin owners, and even lead to a desire to sell their assets. As a result, the Fed will provide bitcoin owners with a tempting offer to convert their funds to the digital dollar at an initial one-to-one exchange rate that will eventually depreciate.

[krishnaverma]

It's a tricky one, but I absolutely believe that the digital dollar poses a threat to bitcoin. There is a possibility that the federal government will enact absurd taxes and restrictions. There are a number of ways in which this could negatively impact bitcoin owners, and even lead to a desire to sell their assets. As a result, the Fed will provide bitcoin owners with a tempting offer to convert their funds to the digital dollar at an initial one-to-one exchange rate that will eventually depreciate.

Is it even possible to create a system to convert crypto assets one to one to something like digital dollar?

[serjent05]

If the government lets things flow naturally, the Digital dollar will never be a threat to Bitcoin.  The only threat to Bitcoin is the government that creates that Digital dollar.  The reason is that the government can impose a regulation that prohibits any Bitcoin transaction or usage of Bitcoin just to promote their CBDC.  It will not only cut people from using Bitcoin but also discourage any future adoption of Bitcoin.

[Quidat]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

They are creating the opposite, it might really be having that notable feature or something which shows much better in terms of transaction speed and high number on volume but
still people who are seeing that decentralized things is always been better then it would be just simply ignored.They could create all the things they do want but as long it would
be that centralized then people wont really be seeing these things to be interesting.Just like the rest which are trying to make out which interest and recognition
isnt really that much.

[KennyR]

If the government lets things flow naturally, the Digital dollar will never be a threat to Bitcoin.  The only threat to Bitcoin is the government that creates that Digital dollar.  The reason is that the government can impose a regulation that prohibits any Bitcoin transaction or usage of Bitcoin just to promote their CBDC.  It will not only cut people from using Bitcoin but also discourage any future adoption of Bitcoin.

Digital dollars are developed to limit the usage of bitcoin and make people turn towards CBDC. Already many countries have done it, and this will get added to the list. Nothing specific as to make bitcoin down. As said in a post the misunderstanding could make few people get into it at the beginning. This might cause some temporary impact which in the long term gets subsided.

[uneng]

If the government lets things flow naturally, the Digital dollar will never be a threat to Bitcoin.  The only threat to Bitcoin is the government that creates that Digital dollar.  The reason is that the government can impose a regulation that prohibits any Bitcoin transaction or usage of Bitcoin just to promote their CBDC.  It will not only cut people from using Bitcoin but also discourage any future adoption of Bitcoin.

Digital dollars are developed to limit the usage of bitcoin and make people turn towards CBDC. Already many countries have done it, and this will get added to the list. Nothing specific as to make bitcoin down. As said in a post the misunderstanding could make few people get into it at the beginning. This might cause some temporary impact which in the long term gets subsided.

People won't turn towards CBDC, at least bitcoin adopters, because they know the differences betwen bitcoin and the digital fiat, while also aware digital fiat has no difference to fiat. Who is going to adopt CBDCs are the people who don't want to use bitcoin, but for crypto market it doesn't make any difference, nothing changes. It will be the same scenario we face right now. The only problem is that governments start using coercive power to force people using CBDCs and to stop using bitcoin. That would be done through a ban, but I guess most countries are safe from this threat, since governments are adopting relatively friendly stances regards bitcoin and crypto.

[BALIK]

The Chinese CBDC wasn't very successful at all. We know China has an authoritarian government that will force its people to use government platforms but it seems not very effective for the Chinese since they are still using the Wechat and etc. There were reports that the Chinese are not using CBDC anymore.

In Nigeria as well, it's also not working, and its due to the adoption of BTC in the country. There could be any different result in any other place or country.

CBDC failure has nothing to do with bitcoin, and even successful CBDC has no effect on bitcoin, they are basically 2 different assets, and CBDC is simply an upgraded version of Fiat. CBDC is inevitable because we are in the digital age and the government's goal in issuing it is to try to control the people more than to compete with bitcoin. If the digital dollar were to be created, I would consider it a rival to today's stablecoins rather than bitcoin or altcoins.

[franky1]

most CDBC including US, canada, china, sweden, africa all try to emulate the so called "two layer"(no coincidence) of bitcoin-liquid/LN
there is a third (top) layer joining these CBDC called the m-bridge which is like the IMF SDR reserves network

yep certain corporate sponsored devs used/abused bitcoin to sandbox test CBDC future decisn using bitcoin and sub networks

the US trial variant(hamilton) of CBDC has a 2 second "blocktime" which has caused in tests bottlenecks of settling 1.7m/2 seconds where it would only be 100% at 3seconds+ for 1.7m tx fully settled

the blocks are not mined nor staked. they are just premined units put into multisig signed tx's(for commercial bank reserves).. where by the transactions in the block are collated and signed by trusted parties(central bank + certain commercial banks)

below the blocks. are the smart contract networks that[as said above] assign reserves in multisig between commercial banks
and then the commercial banks act as hubs for customers payments in their own sub network in milli second(0.07sec) payments

where funds loop through commercial banks smart contracts and the commercial banks then swap reserves between each other every 2-3 seconds to settle the balances out


                       central bank
                    /          |          \                         blockchain
    commerce --- commerce --- commerce
   commerce --- commerce --- commerce
   /     |   \          /     |   \          /     |   \         sub networks
user user user  user user user user user user
CBDC fiat wont be deflationary. they will continue to be able to co-sign more value into existence at the blockchain level to however much reserve amounts the want thus devalue the holdings at the subnetwork level of users

users cant just take their keys to any commercial bank wallet app it is multisig meaning they would have to set up new multisig with new (account) at other commercial bank and send funds across (like opening new account to close first account)

though commercial banks "autopilot" their tx signing of a users signed payment, commercial banks can refuse to co-sign if certain rule breaks occur

though the user database of KYC stays at the subnetwork stage, the commercial banks can report certain activities to financial authorities of criminal investigation where the authorities can then get a court order to view all payment KYC details of suspected criminal act  from the commercial bank involved

in short the Central bank is not monitoring all user payments, they delegated that role to the commercial banks, the central bank and financial action task force/regulators only receive the suspicious activity

[nullama]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

It's basically going to be another altcoin competing with Bitcoin in my mind.

Also, I'm sure there will be some issues with CBDCs as they're going to be implemented per country in different ways, and somehow they'll be talking to each other.

[wxa7115]

The Chinese CBDC wasn't very successful at all. We know China has an authoritarian government that will force its people to use government platforms but it seems not very effective for the Chinese since they are still using the Wechat and etc. There were reports that the Chinese are not using CBDC anymore.

In Nigeria as well, it's also not working, and its due to the adoption of BTC in the country. There could be any different result in any other place or country.

CBDC failure has nothing to do with bitcoin, and even successful CBDC has no effect on bitcoin, they are basically 2 different assets, and CBDC is simply an upgraded version of Fiat. CBDC is inevitable because we are in the digital age and the government's goal in issuing it is to try to control the people more than to compete with bitcoin. If the digital dollar were to be created, I would consider it a rival to today's stablecoins rather than bitcoin or altcoins.

CBDCs have always been inevitable, if a scammer can create their own useless coin then it is clear governments can do the same, but as you state I do not see them as opponents for bitcoin, since anyone which is holding bitcoin for reasons beyond just making money will know it is a terrible idea to exchange their bitcoin for those CBDCs.

And while CBDCs will compete against stable coins there is no guarantee they will beat them in a fair competition, as if you need to identify yourself just to open a wallet then many people will prefer to keep using stable coins for the time being.

[kro55]

In my opinion, both are entirely different, so they cannot threaten each other, using CBDC is no different than you are using fiat. In a sense, CBDC is a digital version of fiat and if we cannot compare fiat to bitcoin then CBDC is similar.

I agree with pooya87's point: digital dollars have been around for a long time, and we have been using them for a long time, so it would not be correct to say that it is a threat or will compete with bitcoin. Bitcoin is not just a currency, it is an asset and an investment, so to speak, there is no such thing as a government-created asset class to compete with bitcoin.

[mv1986]

In my opinion, both are entirely different, so they cannot threaten each other, using CBDC is no different than you are using fiat. In a sense, CBDC is a digital version of fiat and if we cannot compare fiat to bitcoin then CBDC is similar.

I agree with pooya87's point: digital dollars have been around for a long time, and we have been using them for a long time, so it would not be correct to say that it is a threat or will compete with bitcoin. Bitcoin is not just a currency, it is an asset and an investment, so to speak, there is no such thing as a government-created asset class to compete with bitcoin.

Bitcoin's mission and purpose won't change in the slightest because of the introduction of a CBDC. The situation remains the same: the CBDC is pretty much the same as a simple dollar bill from the perspective of how it is created (out of thin air) and how it is backed (by nothing). Now some will argue that the dollar bill is backed by the strength of a national economy, but that would imply that the money printing is based on a rational relationship between the quantity of money being produced and put into circulation and the strength of the economy., but all too often have we seen a decoupling of money quantity and the economy's strength. It just doesn't make sense anymore (and probably might have never made sense, but wasn't as consequential as it is now getting more and more).

[franky1]

Bitcoin's mission and purpose won't change in the slightest because of the introduction of a CBDC. The situation remains the same: the CBDC is pretty much the same as a simple dollar bill from the perspective of how it is created (out of thin air) and how it is backed (by nothing). Now some will argue that the dollar bill is backed by the strength of a national economy, but that would imply that the money printing is based on a rational relationship between the quantity of money being produced and put into circulation and the strength of the economy., but all too often have we seen a decoupling of money quantity and the economy's strength. It just doesn't make sense anymore (and probably might have never made sense, but wasn't as consequential as it is now getting more and more).

fiat/CBDC wont be backed by an underlying asset nor of "strength of national currency"
its purely backed by income/tax/court laws of maintaining that population gets paid in fiat, pays taxes in fiat and fines/debts in fiat(legal tender laws). which keeps fiat in circulation and popular by citizens

[yudi09]

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

Logically, this will not affect Bitcoin because besides being centralized, Bitcoin is also limited in number. I often encounter news like this and for us it is not a threat. If you see and have followed the development of the crypto space, Bitcoin is a threat to those who think Bitcoin is a rival.

I think smart people who are able to see the potential of economic systems will always be happy to choose Bitcoin for the long term. Not without reason.

[BALIK]

~~

And while CBDCs will compete against stable coins there is no guarantee they will beat them in a fair competition, as if you need to identify yourself just to open a wallet then many people will prefer to keep using stable coins for the time being.

I don't think so, if CBDCs were created and used on exchanges, I would use CBDCs instead of current stablecoins. Stablecoins created by private companies, it is riskier than government CBDC. I will skip centralizing them, I will just talk about their safety, then it is clear that CBDC will win this race. Like the accusations we see in USDT, if unfortunately, Tether crashes, our assets in USDT will also disappear, but if it is CBDC it will be safer.

[Jawhead999]

What threat?

I don't think many people are using Bitcoin as a currency, most of them are use Bitcoin as an investment, so what's the threat if the holders only hold the coins and didn't have any intention to send or convert their coins to fiat in hurry?

I will say we might use CBDC in the future since the marketplaces will get forced to accept it, but it doesn't mean I will sold all of my coins.

[pooya87]

I don't think so, if CBDCs were created and used on exchanges, I would use CBDCs instead of current stablecoins. Stablecoins created by private companies, it is riskier than government CBDC. I will skip centralizing them, I will just talk about their safety, then it is clear that CBDC will win this race. Like the accusations we see in USDT, if unfortunately, Tether crashes, our assets in USDT will also disappear, but if it is CBDC it will be safer.

Exactly. What I always say is that things that are not in the same category can not be a threat for each other. That is bitcoin and centralized coins (eg. CBDCs). But another way of saying it is things that are in the same category are a risk for each other. "Digital Dollar" or any other form of centralized payment system is a threat to existing centralized cryptocurrencies like stable coins. The day CBDCs are introduced the centralized stablecoins like Tether will start dying because people would start mass migrating to them since as you said they are a lot safer considering governments issue them not some shady company that can be shut down by the government!
Such transition won't affect the market though. It will be a smooth one that affects the company and anybody bag holding their shitcoin.

[CryptoHeadlineNews]

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

I guess you just answered the question yourself, so no need for me to elaborate more on this anymore. Because these are two different kinds of digital currencies altogether, because while the "dollar" is centralized (I.e controlled by both central banks and government), Bitcoin on the other hand is decentralized (I.e independent on its own)

[EarnOnVictor]

This kind of question has surfaced on the forum before, and the answer is simple, it's a threat to it, but the threat would be minimal. A threat in the sense that many that are using Bitcoin for particular reasons like payment and investments might want to divert to the US Central Bank Digital Currency (CBDC) because it's better for investment in my experience and would be more readily available for that purpose. But for payment, this would depend on the offers the digital currency comes with. If it's such an offer with zero to a low transaction fee, more people would adopt it in place of BTC.

The main strength of BTC is in privacy and anonymity, and it would use that to continue to secure its place amongst rival payment systems.

[posi]

This kind of question has surfaced on the forum before, and the answer is simple, it's a threat to it, but the threat would be minimal. A threat in the sense that many that are using Bitcoin for particular reasons like payment and investments might want to divert to the US Central Bank Digital Currency (CBDC) because it's better for investment in my experience and would be more readily available for that purpose. But for payment, this would depend on the offers the digital currency comes with. If it's such an offer with zero to a low transaction fee, more people would adopt it in place of BTC.

The main strength of BTC is in privacy and anonymity, and it would use that to continue to secure its place amongst rival payment systems.

If compared as a means of payment, bitcoin today is still not widely used because most people prefer to accumulate and hold bitcoins than to use it as a payment method. If compared as an investment, it is clear that CBDC does not have any effect on bitcoin, as CBDC is fiat, just a currency but in digital form.

So I believe CBDC can't threaten or affect the development of bitcoin, when CBDC comes out, instead of using fiat, we will use it for daily activities. BTC and CBDC are entirely different.

[EarnOnVictor]

If compared as a means of payment, bitcoin today is still not widely used because most people prefer to accumulate and hold bitcoins than to use it as a payment method.

I can't agree with your point, you mean a single coin having daily transactions of about 250,000 and yearly transactions of about 93 million on average is not widely used? These numbers are certainly more than the numbers of the holders as I am sure that BTC is active in payments, though more could be done.

If compared as an investment, it is clear that CBDC does not have any effect on bitcoin, as CBDC is fiat, just a currency but in digital form.

It would, first, don't forget that when trading BTC in futures and other online platforms, it's mostly in BTC/USD. Now, tell me, how won't it affect it if the development of CBDC causes more patronage of the USD? And be sure that being a fiat does not mean that the USD is not investable. Also, many are using BTC for payment now because of accessibility and low fee, what if CBDC comes with a better offer? Let it be out before we conclude.

[Kakmakr]

The general pubic does not know the difference between centralized and decentralized... and they simply do not care about that. They care about some government giving the "green" flag on a currency that they can use everywhere. 

We have a huge task to educate people on the difference between the two technologies and what the threat will be to use a centralized technology. 

[_BlackStar]

The digital dollar or any digital fiat currency doesn't feel like a threat to bitcoin, but it certainly can be considered a real threat to other centralized altcoin including stablecoin. I agree with the idea because it is quite possible that CBDCs are adopted by most of the centralized exchanges instead of ignoring them. It will also affect the interest of many people in its use cases as CBDC is the government's official currency as legal tender. So of course it will help centralized exchange to grow bigger due to increased interest.

We have a huge task to educate people on the difference between the two technologies and what the threat will be to use a centralized technology. 

It doesn't have to be, let them choose what they think is safe as when they trust their bank and savings instead of investing in bitcoin. I don't think it's our responsibility to educate, unless they start asking which is better.

[Iranus]

If compared as a means of payment, bitcoin today is still not widely used because most people prefer to accumulate and hold bitcoins than to use it as a payment method.

I can't agree with your point, you mean a single coin having daily transactions of about 250,000 and yearly transactions of about 93 million is not widely used? These numbers are certainly more than the numbers of the holders as I am sure that BTC is active in payments, though more could be done.

Where do you get this metric? I mean, is this bitcoin transaction volume? If it's bitcoin's trading volume, the daily number is much bigger, I just checked CMC, and it shows bitcoin's 24 hour trading volume is over 13 billion. A number that is not too large compared to the trading volume of forex. But this is the volume bought and sold on exchanges, not the volume used as a daily payment method. People are still using bitcoin for investment instead of using it as a payment method. Even if your metric is a transaction metric for payments, 93 million is still too small to be considered widespread.

[Twentyonepaylots]

In my opinion, both are entirely different, so they cannot threaten each other, using CBDC is no different than you are using fiat. In a sense, CBDC is a digital version of fiat and if we cannot compare fiat to bitcoin then CBDC is similar.

Not entirely technically coz fiat like any other currency powers the bitcoin. How would you think any cryotpcurrencies would raise their value without any external force to power it up? What I think should be more appropriate to call any currency is competitor rather than being a threat coz basically there won't be any digital currency without any fiat back up. I agree, on this case bitcoin is merely an investment to people, not even a currency thought of a thing.

I agree with pooya87's point: digital dollars have been around for a long time, and we have been using them for a long time, so it would not be correct to say that it is a threat or will compete with bitcoin. Bitcoin is not just a currency, it is an asset and an investment, so to speak, there is no such thing as a government-created asset class to compete with bitcoin.

Uhmm I don't think so. As you said Bitcoin is an asset and investment, there are lot to compete with being these two.

[nullama]

The general pubic does not know the difference between centralized and decentralized... and they simply do not care about that. They care about some government giving the "green" flag on a currency that they can use everywhere. 

We have a huge task to educate people on the difference between the two technologies and what the threat will be to use a centralized technology. 

This is actually quite true.

Most people actually might end up preferring something centralized as it's usually simpler and easier to use. For example Google, Facebook, etc, instead of simply the Web 1.0, which was decentralized but "for geeks only".

Similar with Bitcoin, it started "for geeks only" but now it's made easy with lots of centralized companies.

[Nrcewker]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

Dollar has fixed rate, we use that to evaluate the value of BTC. Moreover if you see it is similar to that of USDT only. So is USDT currently a threat to Bitcoins? No right. Then similarly this might also happen side by side simultaneously. Bitcoins are already popular coins, and definitely many people use it as an asset rather than a coin. But this digital dollar will be treated as a currency only which value will be fixed with Dollar price. So yes both will have different audience and holders.

[Japinat]

It's a tricky one, but I absolutely believe that the digital dollar poses a threat to bitcoin. There is a possibility that the federal government will enact absurd taxes and restrictions. There are a number of ways in which this could negatively impact bitcoin owners, and even lead to a desire to sell their assets. As a result, the Fed will provide bitcoin owners with a tempting offer to convert their funds to the digital dollar at an initial one-to-one exchange rate that will eventually depreciate.

Yes, it is a tricky one to say. But I'm viewing the opposite thing where it is the digital dollar (government) who views bitcoin as their enemy and poses a threat and not the other way around. Governments around the world won't be creating such thing like digital currencies if bitcoin is not stressing them out, just like China, they have banned the use of it because they don't know yet how it really works because they cannot control it as well. But they can't blind the people nowadays because eventually, these digital currencies will depreciate because they aren't designed to avoid inflation.

[S A KHAIR]

Recently came across this news
https://www.forbes.com/sites/jasonbrett/2022/02/07/fed-designs-digital-dollar-that-handles-17-million-transactions-per-second/

It is still in testing phase. Do you think this digital dollar can be threat to bitcoin ? My answer is never because it is centralized.

The digital dollar is a digital version of the paper dollar so it can be said that it will not pose any threat or effect to bitcoin. The government created CBDC just to bring convenience as well as suitable for today's modern life. Bitcoin is the only digital gold, so it can be said that no government-created digital currency can compete with it.

[danadc]

I would never see the digital dollar as a threat to bitcoin, first because they do not carry the same technology and if they acquire it, it has no limitation or circulation capacity, that is, they will continue printing money causing inflation, bitcoin does not because it has its limitations and They are no longer printed, it cannot be bigger than bitcoin, also if more gold backs it, that is a lie, they do not have any backing, and bitcoin does not have it either, but it is free and has been maturing for a long time, it is a currency that she can run the world if she wants because no one controls her and being free anyone can have access to bitcoin.

[Hamza2424]

Why my dear fellows make a lot of noise on the name of the digital dollar as i think its just nothing but an air ballon whenever you are going to test its durability it is going to disappoint you but bitcoin is a true asset i think there is no comparison for these two completely different entities one is called global asset and one is called global currency a lot of differences. I can see maximum of such posts and topics are created by the newbies but i was expecting something more from OP. 

[Franctoshi]

It just depends on Government's agenda for releasing the digital dollar (CBDC'S) , which I think one of it plans is total control, because Government likes to control everything, but in a situation where they leave both Bitcoin and the digital dollar to compete there's no way it can be a threat to Bitcoin because the difference is crystal clear.

However, Both Bitcoin and the digital dollar needs each other and the digital dollar will help more in Bitcoin's adoption and success ,
so some of those funds in real estate , bonds, Gold etc need melt into Bitcoin through the digital dollar.

[solehdavid]

it was said that the digital dollar would be released primarily due to the pandemic and that every American would be given 1000 digital dollars, but I think that's no longer the case at this point. so the dollar had already lost its former strength and it turned into an effort to keep the dollar afloat. but I don't think the digital dollar will have any effect on bitcoin because the digital dollar will be used for daily transactions. so their lanes are completely different

[Vampobit]

In my opinion, Bitcoin will never face any threats. Due to the hard cap at 21M coins, Bitcoin will always be scarce and valuable.

The more governments try to kill Bitcoin, the more I understand how valuable Bitcoin is.

[justdimin]

It's a tricky one, but I absolutely believe that the digital dollar poses a threat to bitcoin. There is a possibility that the federal government will enact absurd taxes and restrictions. There are a number of ways in which this could negatively impact bitcoin owners, and even lead to a desire to sell their assets. As a result, the Fed will provide bitcoin owners with a tempting offer to convert their funds to the digital dollar at an initial one-to-one exchange rate that will eventually depreciate.

Yes, it is a tricky one to say. But I'm viewing the opposite thing where it is the digital dollar (government) who views bitcoin as their enemy and poses a threat and not the other way around. Governments around the world won't be creating such thing like digital currencies if bitcoin is not stressing them out, just like China, they have banned the use of it because they don't know yet how it really works because they cannot control it as well. But they can't blind the people nowadays because eventually, these digital currencies will depreciate because they aren't designed to avoid inflation.

I highly doubt that it's about fear, if you think that governments fear anything, you have no idea how powerful they are. The thing about the current situation is that they are worried about the fact that they could make some huge amounts of money out of this and they are not, and that's what they want to be able to do.

This digital dollar is exactly for that purpose, they want to make a huge amount of profit, and they will make it when they start. It's not about threat, it's about getting rich, and making your friends richer as well. With this digital dollar, they are going to print unlimited amount of money that is going to be sold to public, and that digital dollar will have no value whereas real money will be in politicians pockets.

[tjtonmoy]

Cryptocurrencies success was only for its characteristics of being decentralized. While the Digital Dollar and Bitcoin may serve some of the same functions and be used for similar purposes, they have different characteristics and operate within different frameworks. It is possible that the introduction of Digital Dollar could have an impact on the use and adoption of BTC, but it is difficult to predict exactly how this would play out.
And NO, Digital Dollar will never be a threat to BTC.

[Vaskiy]

Cryptocurrencies success was only for its characteristics of being decentralized. While the Digital Dollar and Bitcoin may serve some of the same functions and be used for similar purposes, they have different characteristics and operate within different frameworks. It is possible that the introduction of Digital Dollar could have an impact on the use and adoption of BTC, but it is difficult to predict exactly how this would play out.
And NO, Digital Dollar will never be a threat to BTC.

The purpose for which bitcoin being innovated and for what reason these digital dollars were developed needs to be understood. This will clearly define whether digital dollars turn to be a threat for bitcoin. In reality digital dollars were developed to keep people away from bitcoin and to have people's fund under control whereas bitcoin is for financial freedom. So, there's big difference and the same won't let digital dollar to be a threat as mentioned.

[OsipBabin]

I don't think it's possible, they are two totally different things, the dollar, even if it is digital, is still controlled by an institution, and depending on how it is managed, it can generate inflation, directly affecting the currency and the community, on the other hand, bitcoin is free of state restrictions, and despite being volatile, it generates many opportunities for the user, such as having full control of their capital or having much more solid growth opportunities.

Fiat currency digitization and Bitcoin are two entirely different things. Essentially, one submits to the government, one serves everyone, one is still an extension of centralization, digital banknotes, and one is a model of decentralization. I believe that if there is danger, it is only temporary. Don’t panic. The future belongs to the various landing applications brought to us by the underlying technology of the blockchain.

[Jensen Guttenberg]

It is possible that digital dollar could pose a threat to Bitcoin's market share, especially if the digital dollar were widely adopted and used for a larger portion of financial transactions, not with like 15+million transactions per second. However, it is also possible that the two could coexist, with people using both for different purposes. Bitcoin has a strong network effect and a loyal user base, so it is not likely to disappear anytime... Ultimately, it is difficult to predict how the hell two will compete with each other, as it will depend on a variety of factors such as user adoption, the development of new technologies, and changes in economic and regulatory environments.

[cloirecrom]

usdt,busd,usdc is basicly just digital dollar. it already exist.
as for threat to bitcoin NO. digital dollar will be centralized,