Is Bitcoin threatened by digital dollars?

[Susano]

I saw this news and it got me thinking if the growth of Bitcoin in the United States is gonna be hindered since the government plans on introducing the digital dollar. Though I've no idea how it's gonna work.

Quote from:  copied from https://www.msn.com/en-us/money/markets/president-biden-gives-crypto-a-bitter-taste-of-what-lies-ahead/ar-AA1207rp
The White House is urging the Federal Reserve to explore the launch of a digital dollar, or Central Bank Digital Currency, which would be controlled by the Fed. This identical digital twin of the dollar would be entirely regulated.

A U.S. digital dollar "facilitates faster cross-border transactions and is environmentally endurable," the Biden government explained. "It could facilitate financial inclusion and equity by enabling access for a broad set of consumers."

It could also "protect against cyberbullying and operational risks, safeguard the privacy of sensitive data, and minimize risks of illicit financial transactions."

In addition, the White House believes a U.S. digital dollar "could also help preserve U.S. global financial leadership, and support the effectiveness of embargoes."


I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.

But what do you guess?

[Kryptowerk]

No.
The End.

Oh, and yes, you already answered your question. The DD is indeed not decentralized. Nor is it cencorship-resistant, nor boderderless, nor will it be immutable.
It's like the fiat dollar combined with Bitcoin - except that you only take their disadvantages, despite the fact you can do instant transactions.

It could also "protect against cyberbullying and operational risks, safeguard the privacy of sensitive data, and minimize risks of illicit financial transactions."

What a bunch of BS. - If it indeed is safeguarded against cyberbullying it would mean there is a centralized instance with FULL access to any funds and transactions at any point in time - the total surveillance currency. Geroge Orwell's darkest dream.
Actually everything stated in that article points towards a 100%-controlled currency. Which is the most anti-freedom-anti-American-spritit thing I could think of.

[Hydrogen]

The CBDC digital dollar does not appear to be a direct competitor to bitcoin.

BTC is deflationary, while the CBDC dollar is inflationary. This places them in different asset categories, where they do not necessarily need to compete as rivals. The CBDC dollar is likely to be rolled out for user by demographics with a current bank account. While one of bitcoin's largest user demographics is known to be an unbanked demographic which could comprise of billions of end users worldwide. The lack of overlap in design, mission statement and user base could allow a CBDC dollar and BTC to exist independently of each other. They don't need to compete for the same markets or the userbase.

Thus far we haven't seen much fanfare for CBDCs. If their biggest advantage is mass adoption in terms of them being backed by traditional financial institutions. There hasn't been much effort made to rollout a marketing campaign in an effort to leverage that current mass adoption. In a sense, CBDCs are flying a little under the radar in terms of most consumers probably not having heard of them.

[STT]

introducing the digital dollar

Dollar is already digital, doesnt take too much consideration beyond that.   The vast majority of currency moved around, that exists in total will never come close to being physical.   Many dollars are just shifted from one government balance sheet to another, they barely exist in the real economy.  Its part of what makes QE the castle in the sky it has been for over a decade now, the impossible dream made real.

BTC is entirely different from how the dollar is operated, past present and future.   They wont ever change it to properly reflect an equal capitalist standard, its not going to be a contender for anything transformative.   Its not on their agenda and I dont see how it will occur organically, its a top down system for 'the greater good'.   We had people attempt to construct national digital currency, didnt work as it purely a top down construct so there is little point in wondering about digital anything as digital is not new in that way.  We are digital right now, many countries are.
 The speculation is just on when does Dollar dominance, existing since Bretton woods post war and much eroded does in fact fail, when is it too much and can we get any sign beforehand to get out of the way of the damage.  

[Hispo]

The digital dollar and Bitcoin are not comparable, for the reason already mentioned in this thread, OP.
People who buy Bitcoin usually do it for two main reasons, in my opinion: decentralization and speculation.

Those two things or characteristics, you will not find it in the digital dollar. Besides, we all know that the personal data linked to your purchases while using the digital dollar wallet will be a feast to the big brother and the companies that profit off our personal information.

[yhiaali3]

Digital dollars (or digital Chinese yuan or any other digital currency) are worse than paper money and worse than banks too.

Governments have failed to ban cryptocurrencies that are decentralized and not controlled. Therefore, governments seek to issue digital currencies against cryptocurrencies because they are completely opposite to being centralized and completely under government control.

Governments, especially the government of the United States, want to maintain central control over the global monetary system and impose bans on all financial transactions that they do not wish to occur, whether to individuals, organizations, or even countries hostile to the United States.

A centralized digital dollar would enable the United States to do all of these things quite easily.

[uneng]

This identical digital twin of the dollar would be entirely regulated.

I think the quote above summarizes everything. If dollar has never threated Bitcoin during all these 14 years of existence, why would an identical twin do?

There isn't anything special about digital dollar, because like the regulators said, it's the same thing of the currently dollar currency!

[Fivestar4everMVP]

A CBDC, or better called in full, central bank digital currency will have no special effect on bitcoin, Bitcoin is a digital currency that is completely decentralized, and also runs on a decentralized blockchain, majority of those who are already into cryptocurrency understand this and know that a CBDC which is controlled by the government can not be compared to the decentralization, as well as freedom that bitcoin and cryptocurrencies provide.

So i personally see no way a digital dollar created by the federal government will ever be a threat to bitcoin's existence.

[serveria.com]

I saw this news and it got me thinking if the growth of Bitcoin in the United States is gonna be hindered since the government plans on introducing the digital dollar. Though I've no idea how it's gonna work.

Quote from:  copied from https://www.msn.com/en-us/money/markets/president-biden-gives-crypto-a-bitter-taste-of-what-lies-ahead/ar-AA1207rp
The White House is urging the Federal Reserve to explore the launch of a digital dollar, or Central Bank Digital Currency, which would be controlled by the Fed. This identical digital twin of the dollar would be entirely regulated.

A U.S. digital dollar "facilitates faster cross-border transactions and is environmentally endurable," the Biden government explained. "It could facilitate financial inclusion and equity by enabling access for a broad set of consumers."

It could also "protect against cyberbullying and operational risks, safeguard the privacy of sensitive data, and minimize risks of illicit financial transactions."

In addition, the White House believes a U.S. digital dollar "could also help preserve U.S. global financial leadership, and support the effectiveness of embargoes."


I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.

But what do you guess?

Let's put it this way: digital FIAT is threatened by Bitcoin. They should be afraid and they ARE afraid. Digital money is the future, of course it is, but with a complete migration to digital FIAT, Bitcoin will take the role of cash as we know it now. Digital FIAT means total control: you won't be anonymous anymore. Every transaction could be tracked/reversed/stopped etc. Everything will stay the same: inflation, banks in full control, debt, government supervising the process etc.. additionally, most currencies are digital already - that's just a number in your bank account, not real money backed by something.

[Smartprofit]

I saw this news and it got me thinking if the growth of Bitcoin in the United States is gonna be hindered since the government plans on introducing the digital dollar. Though I've no idea how it's gonna work.

Quote from:  copied from https://www.msn.com/en-us/money/markets/president-biden-gives-crypto-a-bitter-taste-of-what-lies-ahead/ar-AA1207rp
The White House is urging the Federal Reserve to explore the launch of a digital dollar, or Central Bank Digital Currency, which would be controlled by the Fed. This identical digital twin of the dollar would be entirely regulated.

A U.S. digital dollar "facilitates faster cross-border transactions and is environmentally endurable," the Biden government explained. "It could facilitate financial inclusion and equity by enabling access for a broad set of consumers."

It could also "protect against cyberbullying and operational risks, safeguard the privacy of sensitive data, and minimize risks of illicit financial transactions."

In addition, the White House believes a U.S. digital dollar "could also help preserve U.S. global financial leadership, and support the effectiveness of embargoes."


I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.

But what do you guess?

Yes, in my opinion, the digital dollar threatens Bitcoin..... 

The digital dollar is essentially an element of a digital concentration camp.  The people of the United States have very ancient democratic traditions.  However, the mentality of the people changes over time.  People can get used to the total control and dominance of authoritarian centralized systems. 

This, in my opinion, can damage such a decentralized asset as Bitcoin.  At the same time, the Fed can start a real war against the first cryptocurrency. 

Bitcoin can be declared the main enemy of the environment and banned from its use in the United States.

[Solosanz]

CBDC wouldn't cause any harm to Bitcoin, but government's rules would harm Bitcoin. So it will depends on the government's rules, will all the countries create a rules to ban Bitcoin or anyone must use their wallet to hold Bitcoin? it surely will create a panic since many articles about no longer privacy in Bitcoin or Bitcoin is the next tulip 2.0 etc. I know we can still trade Bitcoin using decentralized, but if the banks can know the money is come from Bitcoin, there's will a problem in the future.

[inthelongrun]

Not at all. Bitcoin will remain as always, a deflationary decentralized form of digital currency unlike that centralized version of digital currency with an unlimited supply. Both can co-exist anyways, so there is nothing to worry about. And besides, it is not just the United States that is planning to launch a CBDC. There are a lot of countries that will be minting their own centralized CBDCs sooner than later. I expect most countries around the world will have their own CBDCs in the next 2 decades. 

[davis196]

The digital dollar isn't a threat to Bitcoin. The US government and the Federal Reserve are the real threat for Bitcoin.
They portray the digital dollar as the best thing since bread, but in reality all they want is just more control and less privacy for the people.
The statement that the digital dollar will help in "fighting cyberbullying" is ridiculous. What do they mean by "cyberbullying"?
Supporting the effectiveness of embargoes? What does that even mean? Perhaps the countries, that are currently being blocked by embargoes would just dump the US dollar entirely and pick another currency for their transactions. This looks like a great boost in the effectiveness of the embargoes.
This seems like a bunch of nonsense created by a bunch of incompetent government minions.

[so98nn]

It will do this, it will do that and it will be more than that. Oh come on, do we really believe this thing and any planning behind it? I’m sure that this is just another hoax from Government which will take lot of time to implement. Or it may not get implemented at all. These kinda projects being discussed many times now but they never come to existence since government also fear that whether it will work or not ? Whether it is worth investing in its infra and future plans. There are so many questions in this one so definitely it’s not bitcoin that is threaten but it is digits dollar itself. Lolz.

[mvdheuvel1983]

Bitcoin in my opinion cannot be a substitute for digital dollar or vice versa. No matter what the government think digital dollar with digital dollar
 because it is controlled by them bitcoin will be Bitcoin because it is decentralized. As a matter of fact, digital dollar Wii lead to to more inflation in the economy.

[Elpeor00]

If you read carefully they can't even shill their CBDC without making the public aware of decentralized currency merits and niches,  lets take a look

safeguard the privacy of sensitive data
meaning someone else will decide what of your data are "sensitive" obviosly they will need all your data to decide it

minimize risks of illicit financial transactions."
, and support the effectiveness of embargoes."
i.e. it will be totally trackeable, reversible, easily censored

help preserve U.S. global financial leadership
protect against cyberbullyng and operstional risks
meaning that it will be another way to excert control over economic players

In any case it may be a threat to USD pegged stablecoins, but even this is a long shot

[ancafe]

CBDC was not only introduced in America, even in many countries this project has been tested for its launch. CBDC is a government product, meaning it still has the same relationship and rules, so there are not much bigger advantages offered by CBDC and for the case of bitcoin travel threats, I don't think it has a big impact and doesn't have a relationship that could threaten the future growth of bitcoin.

I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.

But what do you guess?

Nothing can threaten the journey of bitcoin, because this asset has a much better bargaining value compared to fiat currencies and CBDC, decentralization offers complete freedom for holders, so that we can regulate ourselves regarding deplation rates. Setting what is meant, you can still hold back when a decline occurs and wait for the recovery process to make a profit, another advantage of bitcoin is that it can retain value that fiat does not have.

That's why bitcoin is growing until now, bitcoin is also a speculative asset that has the potential to go up or down, this will play a role in the supply and demand system.

[gunhell16]

To tell you honestly, I don't see any reason for bitcoin to be threatened by the digital dollar... I can still believe that digital dollar is threatened by Bitcoin because it cannot be regulated by any country's government around the world.

That's why I can't count the people who adopted the concept of bitcoin because maybe others saw that they couldn't stop it so they joined it, that's how simple it is in my understanding.

[nara1892]

To tell you honestly, I don't see any reason for bitcoin to be threatened by the digital dollar... I can still believe that digital dollar is threatened by Bitcoin because it cannot be regulated by any country's government around the world.

That's why I can't count the people who adopted the concept of bitcoin because maybe others saw that they couldn't stop it so they joined it, that's how simple it is in my understanding.

This makes more sense, not bitcoin being threatened by digital dollars, but digital dollars being threatened by bitcoin. I think it's precisely with the launch of the digital dollar that the government saw something that needed to be modernized, and bitcoin has had that for a long time, even more than a decade. And also the digital dollar is likely to emulate the workings of what bitcoin has been introduced since it was first introduced.
There is no reason why bitcoin should be afraid of being threatened by the existence of digital dollars, digital dollars should find a way so that they can exist in the midst of bitcoin's existence.

[Fara Chan]

The digital dollar is not so threatening to Bitcoin, after all we see that Digital Dollar and Bitcoin are not comparable, these two elements have different properties, the CBDC digital Dollar itself is inflationary and Bitcoin is Deflationary, the process of operating these two related elements is also different, so Dollar Digital is not a direct competitor to Bitcoin.
Bitcoin is a decentralized currency, and runs completely on a decentralized blockchain, so there's nothing to worry about.