Is Bitcoin threatened by digital dollars?

[slapper]

It is undeniably an intriguing issue to ponder, and one that has been discussed for some time. I believe it is essential to keep in mind that Bitcoin and a digital currency are two very different things. Bitcoin is a decentralized cryptocurrency that functions on a blockchain, while a digital dollar would be a digital counterpart of the US dollar managed and regulated by the Federal Reserve.

Nevertheless, the creation of a digital dollar might have an effect on the acceptance and expansion of Bitcoin in the United States. However, it is difficult to determine for certain without knowing how the digital currency would operate and what restrictions would be in place.

Consider that many individuals are drawn to Bitcoin due to its decentralized nature and its operation outside of conventional financial structures. Consequently, if the digital currency is tightly regulated and controlled by the government, it may not appeal to these folks as much.

On the other side, a digital dollar may make it simpler for consumers to access and utilize digital currencies, which could eventually result in greater acceptance of Bitcoin and other cryptocurrencies. In my opinion, it is still too soon to tell how the introduction of a digital dollar might affect the growth of Bitcoin in the United States. Nonetheless, I anticipate that the benefits will far outweigh the drawbacks.

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[justdimin]

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.

Yeah, and it is not limited to decentralization but it cannot be an asset as well. Why we are preferring bitcoin compared to gold or paypal; those same reasons will applicable against all government issuing digitalized money. As of now, 90% of people have been adapting bitcoin for the reason of its investment characteristics which is obviously missing with those digital money. So, nothing could stop bitcoin as of now.

In a sense, CBDCs are flying a little under the radar in terms of most consumers probably not having heard of them.

When they start hearing about it, I am sure they will hear about bitcoin as well. In my opinion, government's digital money will help bitcoin to reach more people as government will try to develop basic infrastructures needed for their digital money and the same are enough for bitcoin to be adapted as well.

[Rruchi man]

When they start hearing about it, I am sure they will hear about bitcoin as well. In my opinion, government's digital money will help bitcoin to reach more people as government will try to develop basic infrastructures needed for their digital money and the same are enough for bitcoin to be adapted as well.

You know we have always wondered how mass adoption and acceptance of bitcoin will happen, maybe on a twist, this is one of the ways that we may achieve it by the government's thinking that their digital dollars or whatever CBDC that they are able to create will be able to overthrown bitcoin and the importance it has to us. for those who do not know about bitcoins, the introduction of CBDC by the government will facilitate and help people know about bitcoin better because there will always be comparison made between the CBDC's that are controlled by the government and bitcoins.

[doomloop]

It is undeniably an intriguing issue to ponder, and one that has been discussed for some time. I believe it is essential to keep in mind that Bitcoin and a digital currency are two very different things. Bitcoin is a decentralized cryptocurrency that functions on a blockchain, while a digital dollar would be a digital counterpart of the US dollar managed and regulated by the Federal Reserve.

Nevertheless, the creation of a digital dollar might have an effect on the acceptance and expansion of Bitcoin in the United States. However, it is difficult to determine for certain without knowing how the digital currency would operate and what restrictions would be in place.

Consider that many individuals are drawn to Bitcoin due to its decentralized nature and its operation outside of conventional financial structures. Consequently, if the digital currency is tightly regulated and controlled by the government, it may not appeal to these folks as much.

On the other side, a digital dollar may make it simpler for consumers to access and utilize digital currencies, which could eventually result in greater acceptance of Bitcoin and other cryptocurrencies. In my opinion, it is still too soon to tell how the introduction of a digital dollar might affect the growth of Bitcoin in the United States. Nonetheless, I anticipate that the benefits will far outweigh the drawbacks.

Bitcoin is actually a digital currency but if you mean digital dollars then both of them have some differences and you already explained it. With that said, Bitcoin will be unaffected by the digital dollars. Those who like decentralization will go for Bitcoins but those who are fine with centralization then they will go with digital dollar.

There are some who will choose both. They will only treat their Bitcoin as an invest asset for the long term while they will use their digital dollar as a currency for purchasing or for sending money to their love ones. Now that we know their differences, we Bitcoiners shouldn't worry but let's just continue the business that we already started.

[Finestream]

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.

Well, bitcoin is not threatened by digital dollar but maybe this digital dollar may be threatened by bitcoin in the future especially if bitcoin’s global adoption will become more inevitable as bitcoin users have been increasing rampantly more than we realized. And besides, bitcoin is used for decentralization which means its siding the people unlike digital dollar will still be centralized and will be controlled by government and other entities.

[dansus021]

I dont think bitcoin is threatened by digital dollars or other CBDCs in my opinion it can bring more people who curious to crypto. maybe the right term is US dollar is threatened by bitcoin that is why government created CBDCs so they can control more about their dollar

[rat03gopoh]

The US is dozens of steps behind on the Digital Dollar initiative, I think we now have many versions of the CBDC USD issued by private institutions even established outside the US. In fact, since the beginning of the existence of crypto-based stable coins, bitcoin is still a priority choice for better privacy purposes.

[Darker45]

Not at all. As a matter of fact, Bitcoin's demand would probably increase if a CBDC is implemented in lieu of cash. So a digital dollar would actually reinforce Bitcoin. It might actually push certain people to finally embrace it.

Cold cash will eventually perish. It wouldn't be abrupt, though. It would be gradual. But it has to. The privacy that cold cash provides is probably one of the main reasons why a digital dollar is preferred by the government. It is difficult to monitor transactions involving bills. Worse, government authorities cannot freeze transactions that are illegal. They cannot detect and cancel a transaction from afar. But all this would be addressed with a CBDC.

And this new version of money is also the very reason why people would finally be led to Bitcoin.

[Leviathan.007]

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?

Any of these things like CBDCs and other products by the central banks the governments are all centralized and these are not even cryptocurrencies and these CBDCs cannot be used like bitcoin or other cryptocurrencies. People use bitcoin because bitcoin is decentralized and any government cannot manipulate this to the organization also there won't be any their part element on the transaction while you cannot have this when you are using CBDCs so the CBDCs cannot threaten bitcoin.

[Moeda]

~

Digital dollars are the same as using USDT at this time, it's just that USDT was developed by private parties or private companies. The US government did not come up with anything new. But if the government also issues digital money, of course this becomes a problem if they still use physical money. Because each country has a limit on the amount of currency that can be printed in a year.

For example, if a country can print $10 billion in physical money a year, and they create $10 billion in digital money, then the amount of currency printed is $20 billion. Of course this exceeds the commodity limit, because every country can print money must be supported by commodities. However, the impact of this problem also affects other countries that use the USD exchange rate, because the dollar is used as the world's currency.

[BigBos]

CBDC or DD is a representation of fiat currency that is tokenized I don't think it will affect Bitcoin one bit, basically now everyone thinks that bitcoin is an instrument or alternative investment and digital dollars don't have that, because it's only fiat currency digitized, even though bitcoin aims to replace fiat, the public view makes bitcoin an alternative investment.
Looking at it from the bright side is when all Americans and the world are accustomed to using blockchain technology maybe which will make it easier to access bitcoin to the public.
What will be affected here is in my opinion stablecoins such as USDT, USDC and other stable coins, maybe people will switch from using stblecoins to digital dollars or other CBDCs issued by the government.

[Joshapat]

Bitcoin and digital dollar of course are 2 different things, dollars that are fully controlled by the central bank of course have a stable value, although nowadays it is easier to use bitcoin for transactions but can never disrupt the consistency of digital dollars.

[vv181]

You took blindly what the CBDC promises and what the media tells you. You also undermine what is cryptocurrency all about, specifically about what Bitcoin could offer.

CBDC is an empty threat to the cryptocurrency ecosystem. It has a wholly different core idea, there is no way that bitcoin could be threatened by such a cheeky idea of CBDC. What will hinder bitcoin is strict and forceful regulations that govern cryptocurrency usage, say a country banning it lawfully, then surely bitcoin has no chance. A mere financial technological progress, CBDC, is not in line with the reason that bitcoin exists. So, it is on a different level.

[Wexnident]

The CBDC does its own thing, Bitcoin does its own thing, and no competition whatsoever here imo. It only ever existed in the first place because the Digital Dollar runs on the blockchain I think, in the first place if Bitcoin and fiat have no competition, I don't think CBDC would have one as well since it's basically fiat. CBDC can simply be called the transition from Fiat to Digital instead, it was an idea that was probably solidified when the pandemic happened and online payments were rampant and blockchain was simply used as the medium for it.

[Minecache]

The US is dozens of steps behind on the Digital Dollar initiative, I think we now have many versions of the CBDC USD issued by private institutions even established outside the US. In fact, since the beginning of the existence of crypto-based stable coins, bitcoin is still a priority choice for better privacy purposes.

They are not slow, simply because they are not in a hurry, they need to do their research and due diligence before launching their own CBDC. As you can see, many other CBDCs have been created but failed miserably, and they probably don't want to make the same mistake. Although many versions of CBDC USD have been created, all are still pegged 1:1 by USD, meaning USD still dominates the world currency market. But once the digital dollar is created, it will never be able to compete with bitcoin, because they are completely different and cannot be compared or competed.

[Pesona1]

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?

So far, it has been widely heard that America, especially the FED wants to issue digital dollars to be more efficient and reach a wider range than using conventional dollars, but will that affect bitcoin?
I don't think so, because after all bitcoin position has been strong enough as an investment asset and so far people are more inclined to see bitcoin as the right alternative as a digital currency as well as an investment asset, besides that if we review many issues in the past related to digital money (CBDC),so it's not just America that has planned it, China, India, Indonesia and even several other developed and developing countries have also planned it in advance but in fact until now we haven't found the digital currency of these countries are realized.

[yohananaomi]

Bitcoin and digital dollar of course are 2 different things, dollars that are fully controlled by the central bank of course have a stable value, although nowadays it is easier to use bitcoin for transactions but can never disrupt the consistency of digital dollars.

it is clear and true that these are two very different things, because some are controlled and some are not.
The FED seems to have had the ambition for a long time to be able to work on digital dollars to materialize with the goal of being more efficient and controllable, but whether there are other intentions is of course difficult to predict and there will always be speculation.
but once again the program that is carried out clearly will not affect anything on the existence of Bitcoin and is completely irrelevant.

[19Nov16]

I think bitcoin is not a threat from digital dollars, many people think that bitcoin is a system that can threaten and damage finances like digital money, even though the two are different things and nothing to be afraid of, both can complement each other in many ways, for example if we want to send money to other countries then we need more bitcoins than digital dollars.