CBDC competing with bitcoin

[Y3shot]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.
Central Bank digital currencies can never be a limitation to the growth of bitcoin, bitcoin possess that special uniqueness that no currency can be in a competition with. Central Bank digital currencies was made because of hatred to be like bitcoin.

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[Oshosondy]

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.

It is not even only about how decentralized bitcoin is, bitcoin is also an investment, but fiat is an asset that will make your money value to continue to decrease. What a certain amount of fiat can buy this year, it can no more buy it in the next five years. Saving fiat is like government is scamming you.

[cabron]

CBDC is failing because of it. Nigeria as enaira but the government realizes its not working and same for China AFAIK. Since it the same as fiat, then the government still has control over our money and they could print as much as they want to which Bitcoin can't be printed out of thin air.

Or worse control you with the CBDC app like what they are saying about funds you can only spend on. CBDC has so many differences from BTC, its not gonna win. And all it can do is use SEC to sue crypto companies.

[franky1]

most CBDC work like this

they generate their reserves(mint) value via transaction between a central bank and a dozen commercial banks

central $1.2trillion  -> commbankA $100b
                         -> commbankB $100b
                         -> commbankC $100b
and so on (for commercial banks efghijkl)

this is signed by all. and becomes the reserve. completely agreed by all parties involved
much like how blockstreams liquid uses "federations" to create its assets

with each commercial bank knowing the value (funding lock) they can then use their output as a UTXO for their own payments between each other

these commercial banks acting as part of the "federation" are also acting as the "factories"(hubs) in a system similar to blockstreams Lightning

where by the commercial banks have channels(accounts) with customers where the commercial bank gives users inbound balance which users can request can be handed back to the commercial bank and the bank then pass to another bank that then pass to the other banks customer (like how Lightning routing works)

its no surprise that blockstream done a few changes to bitcoin to emulate what the central banks sponsored them to do as part of the CBDC foundation known as hyperledger.

yep bitcoin has become the sandbox test of possible plans for a CBDC with the systems like liquid and lightning being the prototypes

..
as for user access.. these inbound channels come in 3 varieties(levels)
most CBDC agree that there are 3 levels
level 0 is a max inbound balance that can be of a months salary.. with little to no KYC to act as 'digital cash'
level 1 is a middle class/small business upto 100k with standard KYC
level 2 is the pro/elite account/channel for higher amounts. with full KYC

if people want to send or receive more then a months salary they would have to upgrade(provide Id) to get access to the next level.

there are many CBDC's yep even the chinese one it set up in this manner and so are many other countries set up in this manner.

they only work on the system of LN payment routing style by ensuring they set the limits of users amount they can spend. thus controlling the liquidity of payments.

EG

commbankA $100b  -> commbankB $4b
                                  commbankC $4b
                                  commbankD $4b
                             and so on (for efghijkl at $4b each = $48b for all 12 combined)
                                 commbankA Level two service $25b
                                 commbankA Level one service $15b
                                 commbankA Level zero service $10b

and then the factory(hub) of inbound value to customers
commbankA Level zero service $10b -> commbankA Level zero hubA $100m
                                                          commbankA Level zero hubB $100m
                                                          and so on

commbankA Level zero hubA $100m -> customer00001 $1k
where this is the value that the customer negotiates(co-signs) with the commercial bank of value customer has vs set aside for bank after a payment is made

where by the 'balance' of signed transactions change to offset who has balance or not which is like how lightning route payments


now you know how its all laid out. you can look into many CBDC examples and also see the blockstream owned liquid and lightning networks as case scenarios they ran for the hyperledger sponsors

but here is the reason why governments are doing CBDC
previously it was difficult for governments to self manage their own currency. so they delegated that to banks. however with Visa and Mastercard the governments were not getting as much income from deposits/withdrawals (burning banknotes on deposit. the requiring banks to buy new bank notes at face value for withdrawals) like they did back in the 1900-1970's. because plastic debit cards reduced the ned of bank notes

and with commercial banks failing, needing bailing out. governments want to take back some control aswell as the mentioned income from payments of deposits and withdrawals again,
..and of course loans.
yep they dont want to give commercial banks bonds just to create money. they prefer to be able to create money themselves to then get interest returns on those loans direct back to the treasury

[Hispo]

In the end, I do not think the CBDCs and Bitcoin will even compete against each other.

The CDBCs may convince some uninformed people that Bitcoin is not necessary or that the problem is solved, but I can assure you that anyone that has tried Bitcoin and how decentralized assets can help to improve the life of people, they won't let centralized surveillance assets to replace BTC in their wallets or portfolios.

One asset offers something completely different than the other one.
Also, I am kind of curious how companies like Paypal and other American payment processors will react to the deployment of CBDCs. Keeping in mind it is a model which may make their platforms obsolete.

[bitmover]

In the end, I do not think the CBDCs and Bitcoin will even compete against each other.

There is no competition, just different use cases. No better or worse here.

Bitcoin is a decentralized,  censorship resistant and permitionless currency. We all beeed it in some specific situations.

Wee don't need bitcoin to buy a Starbucks coffee. We need it to fly away from war, to protect our money from government,  to have privacy and so on

You can use cbdc on Starbucks.

[Nwada001]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

They are not trying to imitate Bitcoin; they are actually trying to say... Since you all like things digital, no problem, we can also give you a digital currency; that's where the CBDC comes in, but they have forgotten that we are not just using digital currency because it is digital; we choose it because we are tired of our finances and assets being controlled by them all the time. We don't need something that they can't still access; we don't need something that's stable; we don't need something that's not fully decentralized. If we need that, then there's no need to go into crypto currency in the first place. But it seems they are finding it difficult to realize what the people actually want.

[hatshepsut93]

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.

If they wanted to stop Bitcoin adoption, they could just ban Bitcoin exchanges, order banks to monitor and freeze p2p Bitcoin trading. That would kill Bitcoin market and people would only trade it for gift cards or cash.

CBDC is like a government-owned Visa, it's infrastructure for payments owned by government. But it's all largely a theory and work in progress, it's not clear whether it will ever be released and adopted, or if it will silently get abandoned.

[Ndabagi01]

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.

CBDC will go extinct in a short period of time. This currency exists solely to divert attention away from the use and adoption of bitcoin. The government already knows this, and every bitcoin enthusiast understands why the government is implementing CBDC. It can never be dependant if it is still under the authority of someone or some agency. Bitcoin is decentralized, but CBDC is centralized; CBDC is simply another name for fiat.

In the end, I do not think the CBDCs and Bitcoin will even compete against each other.

This comparison is not even conceivable. If bitcoin ever becomes comparable to CBDC, CBDC will be able to compete with bitcoin in the worldwide market. But, as of now, the use of CBDC has not increased, despite the fact that bitcoin continues to have a big impact on the financial markets.

[panganib999]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.
Central Bank digital currencies can never be a limitation to the growth of bitcoin, bitcoin possess that special uniqueness that no currency can be in a competition with. Central Bank digital currencies was made because of hatred to be like bitcoin.

The change is obvious from the naming conventions itself. Cryptocurrency= Encrypted cash, money that is not only digital, but is hidden away in some sort of internet puzzle that you could solve and then win out of, the prize being the cryptocurrency itself. Central Bank Digital Currencies are well, digital currencies, think of your bank money before you withdraw it, or after you deposit some of it. That in itself is digital money and in some places in the world that very number could denominate value and be used for purchases, be taxable, and such and such. So with that being said it must be obvious to anyone with half a brain that CBDC and Cryptocurrency are not two sides of the same coin. They are not binary, not entangled, not related in any way whatsoever.

[Doan9269]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

If you're using fiats and CBDC, you're still under thesame canopy of centralized authorities being in control of your finances, they can implement, change, alter and influence change as they want, they have the full control over your asset without taking permission from yours, if you think this is abnormal and should be stopped, you have the option of choosing a decentralized digital network with bitcoin, if you adopt bitcoin then don't make the simplest mistake of going back to where you left by having your bitcoin on centralized exchanges.

[AmoreJaz]

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.

CBDC will go extinct in a short period of time. This currency exists solely to divert attention away from the use and adoption of bitcoin. The government already knows this, and every bitcoin enthusiast understands why the government is implementing CBDC. It can never be dependant if it is still under the authority of someone or some agency. Bitcoin is decentralized, but CBDC is centralized; CBDC is simply another name for fiat.

In the end, I do not think the CBDCs and Bitcoin will even compete against each other.

This comparison is not even conceivable. If bitcoin ever becomes comparable to CBDC, CBDC will be able to compete with bitcoin in the worldwide market. But, as of now, the use of CBDC has not increased, despite the fact that bitcoin continues to have a big impact on the financial markets.

CBDC may not go extinct but we all know that it is centralised, so the users know the risks involved using this coin. if the government is supporting it, there will always be users. good as digital cash in usage as we are more on digital transaction these days.
once users understand the difference of cbdc vs btc, they will know which one to use depending on what kind of transaction they want to make.

[romero121]

CBDC were just another way of having control over the funds of the people. This doesn't make any impact upon bitcoin, because people who have understood well about the difference between cryptocurrency and the CBDC will never switches. The development were much focused on keeping the cryptocurrency users directed towards CBDC as they weren't able to ban or restrict the usage of bitcoin.

People who haven't got used to cryptocurrencies and prefer to be with the government's guidance will prefer CBDC. Even those people will find this innovation unwanted if they use bitcoin once.

[btc_angela]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency. CBDC is nothing different from an online banking, I'm sure the reason for central bank digital currencies is to stop to stop people from adopting bitcoin.
Central Bank digital currencies can never be a limitation to the growth of bitcoin, bitcoin possess that special uniqueness that no currency can be in a competition with. Central Bank digital currencies was made because of hatred to be like bitcoin.

I think it's more of the government wanted to join the hype and it's a win win for them. Their population will think that their they are going to support crypto, but on the other hand, this CBDC could be used to track everyone in the future, how they spend, where they spend it and everything. In short it could be used as a surveillance. And as a tool, they can force their people to not have a choice but to used it, specially if you are going to transact to the government itself, everything should be in their control and that is their CBDC's.

[Smartvirus]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

I don't know how they expect people to feel any different when government cannot let the currency to be decentralized .  Some of the reason why most users clamor go cryptocurrency  and by that I mean bitcoin is because of its decentralised nature. The heavy hand of control which the government can't so much release has been the barne of the currency CBDC and would continue to be.
In the end, I think financial freedom is what the government can't offer as they are sure to lose some of its sovereign power to manipulate the system in ways that pleases them after power is released to the people.

[SilverCryptoBullet]

Having a central bank digital currencies still does not change anything because the system still remains the same, central bank digital currencies (CBDC) is controlled by the government and this same system can be manipulated. Central bank digital currencies is a financial structure that is based on debt.

They are controlled by central banks and entirely centralized. They don't have non custodial wallets for citizens, I am sure they won't have such. You don't control keys of your CBDCs and you don't have them actually.

The new innovation by the government is a way to imitate bitcoin but still not up to the standards of bitcoin which is a decentralised currency.

I don't think governments launch CBDCs because they want to imitate Bitcoin or compete with Bitcoin.

They do this because they only want to control their citizens' money flows better. They want to gain more tax from their citizens so they need CBDCs to do this better.

[Cryptomultiplier]

Central Bank digital currencies was made because of hatred to be like bitcoin.

When the control lever of government on individual wallet or pocket is not fixable on Bitcoin, CBDC becomes the alternative solution to further encourage citizens to see the idea of a decentralized system as difficult and unable to be reliable.
CBDC of any country is like the opposite of what BTC  stands for. There is no competition between both as only those who don't fully understand its concept would think a there is.
The major similarity I can share now is that both are digital.
It is okay to also be aware that Bitcoin is a type of cryptocurrency, while, the E-naira is a form of CBDC, just as other countries have thiers.

[GreatArkansas]

For me, Bitcoin and Central Bank Digital Currencies (CBDCs) are completely very different types of digital currencies.
Although both technologies have the potential to completely transform the way we think about money or our current financial system, but we must be aware because they carry some risks that should be carefully considered.

[hd49728]

For me, Bitcoin and Central Bank Digital Currencies (CBDCs) are completely very different types of digital currencies.
Although both technologies have the potential to completely transform the way we think about money or our current financial system, but we must be aware because they carry some risks that should be carefully considered.

Digital currencies are not built on top of blockchain technology.

CBDCs will be built on blockchain but it's just lack of decentralization like Bitcoin blockchain. I think CBDCs are better than digital currencies in technology but if we can have choice to use Bitcoin, CBDCs will not be our favorite choice.

I think CBDCs have more advantage with blockchain technology than previous generations of digital currencies.

[GUIDE] All About Central Bank Digital Currency (CBDC)

[CryptoBuds]

If talking about CBDC, I don't think it has enough criteria and strength to compete with bitcoin. If you want to find something in the crypto industry to compare, stable coins will be more suitable because CBDC is no different from fiat, so it cannot be compared to bitcoin.
Many people say that CBDC will fail, but I see that the government is taking that project very seriously, as we are entering the digital world, it is only a matter of time before everything is digitized. Moreover, they always want to control us more and with CBDC they can control us more tightly than fìat. Therefore, they will certainly continue to deploy despite certain difficulties.