The collapse of central banks...Inevitable?

[Alpha Marine]

Even Javier Milei didn't abolish the central bank after he became president. I think this issue is being blown out of proportion. Central banks are the center of every economy. There would be no country without a central bank.
Central banks of the world may not be perfect but they have a role they play. No country would be without it's fiat currency, and it's the central banks that provide that.

Aside providing fiat for the country, the central bank also has major roles it plays like overseeing the monetary policy of the country, setting interest rates, and managing the Federal Reserve to name a few.
Central banks are too important to the system of a country for it to be abolished.
What we can do is make sure they're more efficient and not try to eradicate them entirely. We live in a centralized world, and a centralized world is run by centralized institutions, that's why I believe fiat and central banks will always be a thing.

[Abiky]

Even Javier Milei didn't abolish the central bank after he became president. I think this issue is being blown out of proportion. Central banks are the center of every economy. There would be no country without a central bank.
Central banks of the world may not be perfect but they have a role they play. No country would be without it's fiat currency, and it's the central banks that provide that.

Aside providing fiat for the country, the central bank also has major roles it plays like overseeing the monetary policy of the country, setting interest rates, and managing the Federal Reserve to name a few.
Central banks are too important to the system of a country for it to be abolished.
What we can do is make sure they're more efficient and not try to eradicate them entirely. We live in a centralized world, and a centralized world is run by centralized institutions, that's why I believe fiat and central banks will always be a thing.

Javier Milei hasn't been able to "abolish" Argentina's central bank because of strong opposition from rival political parties. Especially those working in the legislative chamber. Milei's party only has a small dominance, compared to the rest of the pack. He won't be able to abolish the central bank, make BTC legal tender, nor replace the Argentine Peso with the US Dollar. It's only a dream. The same can be said about Bitcoin replacing banks (or Fiat for that matter).

Despite BTC's decentralized design, it will never achieve its dreams because governments won't allow it. The "Elite" will continue to rule the world until the end. I'm fine with that as long as people have an escape route from the corrupt monetary system. Who needs to replace banks when you can become your own bank? Bitcoin is fine as an alternative to existing Fiat currencies. It can live alongside Fiat for generations. But I can dream, can't I?

[YUriy1991]

If they collapse, it will cause panic for sure and will certainly disrupt global economic stability even though they actually have a big hand in maintaining a country's financial stability.

I will be very sure that the solution that will be taken will also be BTC gradually and BTC will be considered as one of the points that will restore confidence in the financial system when conditions can no longer be controlled.

Just wait.. .

[Alpha Marine]

Javier Milei hasn't been able to "abolish" Argentina's central bank because of strong opposition from rival political parties.

I understand that, I know there's no way in hell they'll let him do that, but even if he did, he'd be causing more harm for his economy than good. I like how radical he is, there are some of his views and policies I buy but removing the central bank is not one of them.

Despite BTC's decentralized design, it will never achieve its dreams because governments won't allow it.

I don't think "dream" is the word to use. I may be wrong but I don't believe the goal or dream of Bitcoin is to become the legal tender of the world. No part of its white paper implies that. Bitcoin was made to be an alternative currency. Something can't be an "alternative" if it's the main and globally accepted one.
Bitcoin should just be accepted in every part of the world and people should be able to use it freely at any time. It doesn't need to be legal tender.

[kro55]

Despite BTC's decentralized design, it will never achieve its dreams because governments won't allow it.

I don't think "dream" is the word to use. I may be wrong but I don't believe the goal or dream of Bitcoin is to become the legal tender of the world. No part of its white paper implies that. Bitcoin was made to be an alternative currency. Something can't be an "alternative" if it's the main and globally accepted one.
Bitcoin should just be accepted in every part of the world and people should be able to use it freely at any time. It doesn't need to be legal tender.

To be honest, many people have no knowledge of economics or politics and they are too delusional to think that BTC will replace fiat or banks. Even if satoshi created bitcoin with the intention of replacing fiat currency, that doesn't mean it can happen. He may be the genius in creating bitcoin but he is not the government and the government is the one who can decide what happens or should not happen in this world.

The only thing we can think of is that the government will not seek to eliminate bitcoins and instead they will be legal and can become an alternative that exists alongside fiat money and banks.
Don't be under the illusion that bitcoin is decentralized which means no one can do anything with it, they can't control it but they can ban us from using it with strong measures.

[MissNonFall9]

It is not the case that central banks will shut down if the world economy deteriorates. Because whenever the economic condition starts to deteriorate then experts must work to fix this bad condition. No matter how bad the economic situation is, people will not want to reduce their use of fiat very easily, no matter how much inflation there is. Because many people including businessmen get good benefits from this even through inflation. But day by day the use and circulation of cryptocurrency is increasing. Since the possibility of profiting from cryptocurrency is much higher than anything else, it can be said that cryptocurrency will be at the peak of popularity one day.

[Cookdata]

If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?

What's your opinion? Your input would be greatly appreciated. Thanks.

Maybe or maybe not but I just know that Central Bank existed for long time to be here today and if the government continues to exist as a result of democracy we all agreed to use as system of leaders, it will remain firm because they can manipulate policy on citizens to suit their agenda. Didn't you see some days ago Biden propose 44.6% tax on investments? What do you think it's the purpose of doing that? It might not be healthy but because it's propose doesn't mean it can't be enforce.

They said a body is said to be hot but when compared to another body, it will feel like it's hot. US inflation might look deep to them but if you check some countries, you will cry for them man. Currently our inflation is around 30%+ and we are not even in the half of the year.

I don't want to use never and sentiment aside, Bitcoin will not be a currency if the Russian, US, China never support it, I heard Russian are trying to ban anything crypto and China has done same since last bull run. This harsh calls is not giving any green light on Bitcoin adoption not talk about currency. Maybe in the future, if they reconsider, it might be a legal entity but I'm not seeing that happening anytime soon.

[Abiky]

To be honest, many people have no knowledge of economics or politics and they are too delusional to think that BTC will replace fiat or banks. Even if satoshi created bitcoin with the intention of replacing fiat currency, that doesn't mean it can happen. He may be the genius in creating bitcoin but he is not the government and the government is the one who can decide what happens or should not happen in this world.

The only thing we can think of is that the government will not seek to eliminate bitcoins and instead they will be legal and can become an alternative that exists alongside fiat money and banks.
Don't be under the illusion that bitcoin is decentralized which means no one can do anything with it, they can't control it but they can ban us from using it with strong measures.

With centralized exchanges dominating the crypto market, banning "Bitcoin" should be a "piece of cake". After all, CEXs are required to comply with KYC/AML. Governments will have a registry of who bought or sold BTC at any given time. Considering that CEXs are the gateways between the Fiat and crypto worlds, banning them would prevent people to get access to the revolution. This won't stop Bitcoin, but it will reduce mainstream adoption by a large margin. Those who still want to get access to it, are going to have to buy/sell F2F (Face to Face) or P2P (Peer to Peer).

It's hard to imagine central banks will disappear anytime soon. As long as governments exist, replacing banks with BTC would only be a distant dream. At least, Bitcoin does the job it's supposed to. The future can't be predicted, so lets hope for the best.

[electronicash]

To be honest, many people have no knowledge of economics or politics and they are too delusional to think that BTC will replace fiat or banks. Even if satoshi created bitcoin with the intention of replacing fiat currency, that doesn't mean it can happen. He may be the genius in creating bitcoin but he is not the government and the government is the one who can decide what happens or should not happen in this world.

The only thing we can think of is that the government will not seek to eliminate bitcoins and instead they will be legal and can become an alternative that exists alongside fiat money and banks.
Don't be under the illusion that bitcoin is decentralized which means no one can do anything with it, they can't control it but they can ban us from using it with strong measures.

With centralized exchanges dominating the crypto market, banning "Bitcoin" should be a "piece of cake". After all, CEXs are required to comply with KYC/AML. Governments will have a registry of who bought or sold BTC at any given time. Considering that CEXs are the gateways between the Fiat and crypto worlds, banning them would prevent people to get access to the revolution. This won't stop Bitcoin, but it will reduce mainstream adoption by a large margin. Those who still want to get access to it, are going to have to buy/sell F2F (Face to Face) or P2P (Peer to Peer).

It's hard to imagine central banks will disappear anytime soon. As long as governments exist, replacing banks with BTC would only be a distant dream. At least, Bitcoin does the job it's supposed to. The future can't be predicted, so lets hope for the best.

they will not disappear as they will be replaced by CBDC. its still the central bank though. and i'm not sure if BTC is part of their plan to eliminate but there are plenty more of crypto.

i still believe in the conspiracy theorists about this collapse being planned for the CBDC.  for the CBDC to work, they need banks to fall apart.  we're going to find out what will CBDC offer in the next decade but things will get worse first and we are seeing it happening.

[coolcoinz]

Even Javier Milei didn't abolish the central bank after he became president. I think this issue is being blown out of proportion. Central banks are the center of every economy. There would be no country without a central bank.
Central banks of the world may not be perfect but they have a role they play. No country would be without it's fiat currency, and it's the central banks that provide that.

Aside providing fiat for the country, the central bank also has major roles it plays like overseeing the monetary policy of the country, setting interest rates, and managing the Federal Reserve to name a few.
Central banks are too important to the system of a country for it to be abolished.
What we can do is make sure they're more efficient and not try to eradicate them entirely. We live in a centralized world, and a centralized world is run by centralized institutions, that's why I believe fiat and central banks will always be a thing.

Milei is a tool. I had high hopes for the guy especially after he said some good things about bitcoin, but after becoming the president he proved that he doesn't understand bitcoin at all.
I wouldn't be surprised if all he did was use his image of an outsider to be ellected and once that happened it was back to money printing and bowing before the World Bank.

Will central banks collapse? Eventually yes, but they'll have so much time before it happens that they'll simply reset the currency like they did in Germany, Poland, Zimbabwe, and many other countries.
Maybe some of you remember that it happened in Iceland and Cyprus and it can happen in a bigger country like Japan or China since they both aren't in a good shape.

[Abiky]

they will not disappear as they will be replaced by CBDC. its still the central bank though. and i'm not sure if BTC is part of their plan to eliminate but there are plenty more of crypto.

i still believe in the conspiracy theorists about this collapse being planned for the CBDC.  for the CBDC to work, they need banks to fall apart.  we're going to find out what will CBDC offer in the next decade but things will get worse first and we are seeing it happening.

Of course they won't disappear. Not as long as governments exist. The launch of CBDCs is all part of the plan for a global reset. Everybody knows that. I would've liked Bitcoin to rule the world, but I guess it's too late for that. Especially when centralization dominates the crypto industry. Bitcoin and other cryptos are now "Wall Street's" pawns. You can thank the approval of spot ETFs for that. Now many people consider BTC as an investment instead of a currency. You think BTC will be able replace Fiat this way? I guess not.

At least, we have an escape route from the corrupt monetary system backed by central banks and governments alike. As long as people have a choice, nothing else matters. Hopefully, Bitcoin will live alongside Fiat currencies for generations.

[MissNonFall9]

Since the central bank is the highest level of financial institution in any country and controls the entire banking and financial system of the country, it is really difficult to predict why the central banking system will collapse. But if cryptocurrency reigns in every country, cryptocurrency may be recognized as the second major currency, but I don't think Bitcoin will replace fiat currency.

[TEBTC]

There is no way that a central bank of a country will be scrapt and be replaced with bitcoins, because central bank are the principal bank in any country they play a lot of roles in sterilizing the economy of any country by keeping inflation on the check and they play regulatory roles by giving out sanctions to commercial banks that are non compliance with the central bank guide line

[3kpk3]

Nah. I wouldn't call it inevitable and history has pretty much proven that op. Central banks are like the GPUs/Hearts of the world governments implying that they will survive no matter what happens.

Bitcoin overtaking FIAT is just a pipe dream that some believe in while most people including me strongly believe that it will continue serving as an alternative payment method to FIAT.

[Uhwuchukwu53]

With central banks struggling to keep inflation under control, people are beginning to lose trust in the traditional financial system. Some politicians (eg: Javier Milei) even suggested to abolish central banks as they're the main cause of the world's economic problems.

If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?

What's your opinion? Your input would be greatly appreciated. Thanks.

Actually this may happen in the nearest future, though it may not be easy but navigating the heat of inflation to many nation mostly the third world countries some has no knowledge on how to handle their fiat system as all strategies has failed as there economy keep dropping on daily basis as result of inflation. As some citizens keep in diversifying there system of holding this currency from fiat system to digital currency by the time it climb above 50-50% of those who make use of digital currency and fiat the government may be forced to weigh their both the best alternative and definitely BTC will be the only option that will make it inevitable.

[Text]

I can't say for certain how crypto will play out with CBDCs coming in, there's a chance some electronic cash could be phased out, but who knows how it will all shake out. But CBDCs could indeed change the financial landscape, we'll have to see what benefits and drawbacks they offer.

Spot ETFs might be a double-edged sword. They bring in more people, but maybe not the kind who see it as a currency revolution. Still, I believe in the potential of crypto. Even if it doesn't replace fiat entirely, it could be a valuable alternative. And who knows, maybe Bitcoin can still find its place alongside CBDCs.

[avp2306]

they will not disappear as they will be replaced by CBDC. its still the central bank though. and i'm not sure if BTC is part of their plan to eliminate but there are plenty more of crypto.

i still believe in the conspiracy theorists about this collapse being planned for the CBDC.  for the CBDC to work, they need banks to fall apart.  we're going to find out what will CBDC offer in the next decade but things will get worse first and we are seeing it happening.

Of course they won't disappear. Not as long as governments exist. The launch of CBDCs is all part of the plan for a global reset. Everybody knows that. I would've liked Bitcoin to rule the world, but I guess it's too late for that. Especially when centralization dominates the crypto industry. Bitcoin and other cryptos are now "Wall Street's" pawns. You can thank the approval of spot ETFs for that. Now many people consider BTC as an investment instead of a currency. You think BTC will be able replace Fiat this way? I guess not.

At least, we have an escape route from the corrupt monetary system backed by central banks and governments alike. As long as people have a choice, nothing else matters. Hopefully, Bitcoin will live alongside Fiat currencies for generations.

Government will protect them since there are some business interest has done with those officials so maybe they will just find ways on how they can adopt the new system that's why they are trying to introduce that CBDC so that they could able to condition people to slowly adopt this when they start to launch any related programs. That's why they are trying to create some nasty decisions on crypto because they want to shift people's attention and make crypto look bad to them. Also for sure they didn't expect something fast development happened on bitcoin and they might really think that its growth is unstoppable since now it already reached on mainstream scene.

Maybe not actually a escape route but somehow a legal option we could choose especially if we don't like what they are trying to implement for us. As long they give us freedom to choice its fine and hopefully they will not bitcoin just to insert their personal interest.

[MissNonFall9]

There is no way that a central bank of a country will be scrapt and be replaced with bitcoins, because central bank are the principal bank in any country they play a lot of roles in sterilizing the economy of any country by keeping inflation on the check and they play regulatory roles by giving out sanctions to commercial banks that are non compliance with the central bank guide line

A central bank's demise is simply not possible for this reason - it would destabilize every economic sector in every country and have an immediate negative impact on the wider world economy. So no countryman wants his country's automated clearing house service to diverge or the financial security settlement system to break up and the central bank's relationship with every financial arm of his country to break down. But considering the economic progress, the fiat currency as well as the cryptocurrency will be allowed to continue functioning equally.

[Abiky]

Nah. I wouldn't call it inevitable and history has pretty much proven that op. Central banks are like the GPUs/Hearts of the world governments implying that they will survive no matter what happens.

Bitcoin overtaking FIAT is just a pipe dream that some believe in while most people including me strongly believe that it will continue serving as an alternative payment method to FIAT.

The problem is most people consider Bitcoin to be an investment tool. NOT a currency. Because of this, it will never replace Fiat. Governments won't like the idea of a decentralized cryptocurrency taking over the economy. But if that's what the majority wants, they'll have no option but to embrace the revolution. If El Salvador did it (although it hasn't ditched the USD completely), other countries can do it.

I'm afraid central banks will continue to be relevant as long as governments exist. There's nothing we can do at this point. Once the world economy goes beyond repair, central banks will reset it to pave the way for CBDCs. There will be more slavery and zero privacy with the new system. When paper money (cash) becomes history, good-old cryptocurrencies (Bitcoin, Litecoin) will be there to save the day. I'm hoping for the best in the future.

[STT]

Replacing your current with a foreign nations while in alot of debt wont work out too well as Greece discovered after it hosted the Olympics and joined the Euro; it was about to be bankrupted.  They lied to join the Euro while unable to sustain their progress positively; their only advantage was being small enough their former leaders actions were an embarrassment more then any real burden nominally to the large EU bloc.

Argentina is already using the dollar and other currencies in effect.  Part of Bitcoins usage I think comes from countries with failed economic systems, its the currency of last resort to some.

Ironically Dollar is in shortage in some parts of the world, liquidity that comes from that international market might be lacking.  I believe Argentina might find its not an easy solution to use someone else's currency solely.  If they had feasible targets to recovery, massive exports especially shared with Dollar and also USD was very easy policy I guess its possible.

Basically Argentina needs to be an oil exporter on the level of OPEC and they arent.   I cant think of anything they might use instead just as good and in demand in exchange for dollars.


Collapse is the not wording I would use, slowed descent a parachute of sorts is in deployment by all indebted banks.  Not just Greece the majority are bargaining in hopes to delay touch down and reset, I would accuse ECB itself of not out lasting any commodity backed currency or strong export economy FIAT or not.