Topic: Can bitcoin compete with CBDC's? (Read 337 times)

Actually, there are too many. You'll be unattached to the centralization that CBDC has. While CBDCs focus is all about being a payment to the local where it's being implemented and created.

Bitcoin can be used in all countries, globally. There's no need for a country's government to be part of it because it is as-is. No central authority and can't be frozen by any governing body that implements the CBDC.

People are avoiding CBDCs because they already have cash (paper money). But when that is removed from circulation, you can bet they will switch to Bitcoin for the preservation of privacy. As you've said before, CBDCs will enable governments and central banks to have a full scope over your financial activity. There will be zero privacy and less freedom over the way you handle your money. The only ones that will benefit from the new digital cash system are none other than banks and governments alike.

Bitcoin won't directly compete with CBDCs (due to the way it was designed), but at least it will prove to be an alternative for those who need it the most. Things would've been worse if Satoshi didn't invent Bitcoin in the first place. The world is quickly shifting to the digital era, so I wouldn't be surprised if CBDCs take over the world within 1-2 decades from now. Just my opinion

both has their own niche, I'd say CBDC will instead compete with stablecoins in general where it seems they have somewhat similar utilities, Bitcoin and other altcoins like ethereum will always have their own different niche that is because of their volatile nature and fluctuation that could be beneficial for investments, so I guess comparing both is like futile attempt of comparing something that isn't even should be compared with each other.

CBDC were just an advanced form of fiat. Just because it is getting connected through technology it doesn't mean CBDC is good and functions in a better way. Bitcoin is different from CBDC and we can't have a comparison. When it comes to working CBDC is the centralized fiat which gives direct control to the government. To keep the people out of reach from the cryptomarket, countries have begun to develop their own CBDC.

Just as bitcoin now encourages users to abandon fiat in favor of cryptocurrencies. CBDC has absorbed all the negative aspects of fiat, only in a digital shell. Store money in CBDC? Absolutely not. In addition, CBDCs will have increased regulatory scrutiny, which means strong transaction censorship. Whoever wants to avoid all this will choose bitcoin.

I think they can do something. Remember they are created by the people who are against Bitcoin. People behind them can encourage the public to use their own creation and not Bitcoin. Much more if they ban BTC on their country. CBDC and Bitcoin do also have their own similarity and that is both runs in the blockchain. The only main difference is that one is decentralized and the other is centralized.

Even though CBDC has their own advantages and that is they are stable and safe, I mean safe because they are regulated. BTC can still compete with them because BTC do also has its own charm and that is its volatile nature, where people can use it as an asset for trading or investing other than using it as a currency and most of all, it is safe because we control our own money.

The CBDC's nothing to do with bitcoin.

These are two different things, bitcoin gives you financial freedom, and it can not be controlled by any central authority/government. While CBDCs are controlled by the central banks no matter even if they are created on blockchain but still they are state-owned currency and they can mint more whenever they want as they usually do with paper currency.

Bitcoin can never compete with CBDCs. That's because it's decentralized, whereas CBDCs are not. Comparing both is like comparing apples vs oranges. Most people will prefer a CBDC over BTC because of its stability. Not only that, but a CBDC has the full backing/support of the government. Bitcoin will only remain as an alternative currency for those who want to "escape the system". I'm fine with that as long as it works as intended.

Who needs to beat digital Fiat (CBDC) when Bitcoin can succeed on its own? A sovereign currency like Bitcoin cannot be stopped no matter what. It enables people to be their own bank. Given that both governments and central banks are powerful entities, it seems to me that BTC will live alongside CBDCs for generations. Who knows what's next in store for the pioneer cryptocurrency? Just my opinion

Wrong comparison. CBDC should be compared with money transfer applications or fiat wallet services and not against Bitcoin.
Bitcoin paired with Ethereum, that is when a big question will come out on which is better between the two. Or BNB.
No competition between CBDC and Bitcoin because Bitcoin is not defined by most users as a currency yet, it's an asset and they will keep it as long as they want just like how my Mama keeps her gold in her stash.
And I doubt CBDC will be supported in a sweep, when people realized what they are up to, there will be doubts about why they should use it rather than just using plain cash.

Same thing OP, you won't be able to compare or make some replacements since these two aren't the same at all when it comes to what they aim. I don't think these huge bankers will ever make it so easy for Bitcoin to replace their God (fiat). I don't think Bitcoin will compete with it, they're probably goes hand in hand to exist.

It can hardly be said that governments are trying to compete with bitcoin, and therefore issue their own CBDCs. By issuing CBDCs, governments are simply improving the efficiency of their banking system's cashless payments. They have long appreciated the benefits of blockchain technology, and therefore use it to improve the performance of their national currencies.
As for the possible competition between CBDC and Bitcoin, of course, they cannot compete as they are completely different financial assets. The competition between them is the same as between fiat and cryptocurrency in general.

It doesn't matter of what kind of currency it is either in digital form or not it is still the same as it is regulated by the government unlike with Bitcoin where no one regulated the Bitcoin. Bitcoin can compete with cbdc as it cannot stop people from using Bitcoin. Both have different purpose or goal to achieve. As I have explained that CBDC is regulated by rhe government since it is pegged by the fiat currency or in short it's digital form while Bitcoin is all about being decentralized and also let people decide to be anonymous or not.

Government will always have control over money. Even if we are talking about crypto, they won't have direct control of crypto itself, but they would have the control over fiat which we usually turn that into. Meaning, if you have bitcoin and it goes up and you are richer now, they still control what you can do as a rich person, because they are the ones deciding the law.

This is why CBDC doesn't matter, because we are already at a place where governments have some control over it and Bitcoin is still awesome and still better than anything and we will still keep using that. There is no fear of CBDC at all, that will not change anything in crypto world, maybe stablecoins should be worried a bit, not us.

Just having Bitcoin as an alternative is cool for most of us, and bitcoin and CBDC are both two separate networks of financial transaction and asset management, Bitcoin have multiple features that are absent in CBDC and with that BTC vs CBDC is no equal and among the many differences is:
-Bitcoin is a decentralized currency with its own blockchain free from alterations from any part such that is evident in altcoins.
-Bitcoin serves as a trans border currency! Bitcoin is also an Asset were CBDC is just a currency peg to a fiat so ultimately CBDC is a centralized altcoin.

I guess a better question to ask is could bitcoin ever replace CBDC's? (bitcoin outcompetes CBDC's)

Since CBDC is one of the forms of money, it will be in circulation on a par with cash and non-cash types of money. And you will be forced to use it, since you will not be able to make calculations in bitcoin everywhere. In this case, such competition will not have any significant size.

Very good words, but if you read a little analytics and see what people and large banks made it so that bitcoin was traded on all major world exchanges and became very famous, it becomes clear that the same people are trying to participate in the launch of CBDC. Given the necessary situation in the world, these people can very quickly ban bitcoin mining and ban it on all exchanges. So far, such a situation has not occurred, but this scenario is possible.

I don't think so. People are losing their faith in the government, especially people in the USA. In my country, it is hard to find someone who fully supports the government and its centralized system. The current monetary system has existed for many years and flaws have been found everywhere. Suspicious transactions, centralization, printing, manipulating, inflation, etc have made many people tired of it. If you ask people on this forum, most of the people will choose bitcoin over cbdc because of the freedom and decentralization

So, IMO, CBDC will not stop bitcoin, it only make cryptocurrency become even famous

It's the same with the current fiat where they only make it digital and of course, the banks have control over your money once again. they just put some sugar coating with it but in reality, they wanted to fool people to use support their CBDC instead of bitcoins. From now on, we expect tight competition between these two and there will be lots of negative news against bitcoin again due to the fact they wanted to turn off the light of the future of Bitcoin as the mean of payment.

Does it even need to in the first place? It'll get used if people want to use it, it won't if they don't want to, simple as that. Just the fact that Bitcoin is decentralized and CBDC is centralized already negates any sort of possible competition between the two imo, and CBDC is literally just fiat but digital (which fiat can honestly do as well). Let them do their thing, not exactly sure what CBDC's goal is (afaik it's just to digitalize fiat payments), but I'm pretty sure it's not anywhere close to wanting to fight with Bitcoin, or any crypto for that matter.

That's right, CBDC is just fiat in digital form, Fiat does not compete with bitcoin, so there is no reason to infer that CBDC and bitcoin are competing with each other. I think the purpose of the government creating CBDC is because we are moving into the digital age and everything is moving towards digitization, and using CBDC, the government will control us even better. So I don't think CBDC will compete with bitcoin, the two will go hand in hand to support each other.

Bitcoin is built such that you have complete control of your funds. The philosophy behind Bitcoin is to "Be your own bank" because you are holding the keys to your wallet. CBDC is just the opposite because a third party is now involved in holding your funds. The bank is the third party; Government and Banks work hand in hand. They decide how you use your funds and the amount to use, your funds can even be frozen or denied withdrawal if there is an issue in your document or other issues, so you are not in control of your funds. Simply put, I think CBDC are digital version of fiat, so they are very much controlled by the Government. You are also exposed to inflation and other anomalies that may be present in such country. Basically, Bitcoin have a different philosophy when compared to CBDC. 

It can, it really really can. It's not going to be even similar, it will be something vastly different and people will react to it very differently. I know that people are not entirely sure about what to do when CBDC starts, and how the world will react to it, but we need to realize what it is and why it can't compete.

Why are we in bitcoin and not putting our money in fiat right now? Well, because we believe that bitcoin is better than holding it in fiat. What is CBDC? It's digital fiat, basically the same as fiat, but digital instead of paper. So that means why would people who moved away from fiat to go to bitcoin suddenly want to go to digital fiat instead? Makes no sense.

Bitcoin and CBDC are two different kind of digital assets, so I think they are not directly competing with each other.  Bitcoin being decentralized cryptocurrency often use as an alternative to traditional fiat and store of value while CBDC as a digital version of a country's fiat is seen as a way for central banks to modernize their monetary systems and increase financial inclusion.

As you can see they have different purposes and target different user groups. However, there are a few areas where they could potentially overlap:


Average person may choose CBDC over Bitcoin because it is issued and backed by a central bank but other people might choose Bitcoin over CBDC because of the following reasons:

CBDC is only a digital form of fiat, nothing else. There won't be a change in the currency. It must be balanced by government wealth created through fiat. As a result, Bitcoin won't be threatened or compete with CBDC. Both are entirely separate things. Additionally, CBDC would support Bitcoin by making p2p trading simple. Instead, I don't sense any concern about CBDC. I will welcome it.

You know CBDC is the same thing of fiat, but in digital format, right?

CBDCs aren't a plus for governments and traditional banks against Bitcoin and decentralized crypto in general. The incentive to use Bitcoin is still the same: have control over your own money, transact it boardless anonymously, protect your patrimony on long term against inflation and potential government's seizure, accessibility when working and being paid online.

This is nothing new. Since the launchment of BTC in 2009 we hear these arguments, and they didn't prevent Bitcoin from being successful and hiting new ATHs every few years.

Bitcoin and CBDCs have different properties and characteristics, and they are designed to serve different purposes. Btc is a decentralized, digital currency that is not controlled by any government or institution.

CBDCs, on the other hand, are digital versions of fiat currencies that are issued and controlled by central banks and the government. They are intended to complement, rather than replace, physical cash and bank deposits.

Btc and CBDCs are different, they are not mutually exclusive and they can coexist. So there is no need to compete with each other.

CBDC’s are effectively just a stablecoin with spyware. Your government will use a CBDC to control you, to spy on you. Everything you spend will be monitored, every single cent of income will be visible and open to taxation. The very thought of a CBDC is evil. It’s intrusive, I don’t like it at all.

Of course bitcoin can compete with any potential CBDC. Bitcoin is the exact opposite of a CBDC. Bitcoin is decentralised, it has a capped supply of 21 million. The fiat value of bitcoin is designed to go up forever. Your CBDC has none of these features.

Bitcoin does not need to compete with CBDCs which are worse than Bitcoin. It does not have to join such competition because CBDCs are centralized, not decentralized currency.

With Bitcoin, you have a full decentralization and freedom which you can not find in any CBDC.

CBDCs will have problems with inflation or hyper inflation which is worse than fiat currency in my opinion. With CBDCs, minting new supply is more easily than printing new circulating supply for fiat currency.

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

The emergence of CBDC will not stop people from using bitcoin, this is because CBDC as we all know is no different from our traditional fiat currency, the only difference is that CBDC is the digitalized form of it,
- CBDC is still prone to centralized control like it is with our normal physical fiat currency
- CBDC is still prone to inflation, which can lead to loss of purchasing power, like it currently is with our physical fiat currency.
- CBDC can be frozen right there in your wallet by the Federal government or central banks they controls it, without your consent or permission, like it is with our physical fiat currency.
- with CBDC, your every transaction is monitored, you have no financial privacy of any kind because at all time, the central bank know how much you have in your wallet.
- with CBDC, when you send money to other parties, your identity is known to the central Banks, and so is the identity of whom ever you send money to.
- with CBDC, you can be denied access to your money any time and day, and there is nothing you can do about it if they refuse to grant you access to your money, who are you going to report to?.

But Bitcoin, Is the direct opposite of all that CBDC represent and stand for,
- Decentralized is bitcoin,
- Freedom is bitcoin,
- Privacy is bitcoin..

What more can one possibly ask for? Bitcoin has provided us with all that we need to live our lives free from other people controlling our finances lives, the ball is now in your court to either accept or reject.

CBDC is different from Bitcoin. Bitcoin is not managed by a central server and does not need a central authority or intermediary. A decentralized peer-to-peer payment system that is fully controlled by its users around the world makes Bitcoin very unique in that it gives its users complete control over their money.

CBDC is digital money that is issued and controlled by the central bank, the supply of which can be increased or decreased by the central bank to achieve economic goals. In addition, CBDC will become a representation of digital money as well as a symbol of state sovereignty sovereign currency. Because the systems are completely opposite, Bitcoin and CBDC will never meet and there will be no competition between the two.

No because Bitcoin has different structure than CBDC. CBDC is just a digital dollar and bankers just make it fancy with the use of their so called unique blockchain but it’s fiat that coming from thin air through unli print. While Bitcoin on the other hand is a complete decentralized currency that has limited supply. It can’t be affected by inflation due to to it limited supply and very good in the long run. Bitcoin is backed by PoW while CBDC is backed by politicians word alone.

They are incomparable and Bitcoin is the best in all aspect when it comes normal citizen benefits.

Bitcoin was never meant to compete with anything, that's the thing I think I have never agreed with (when talking about Bitcoin displacing banks or killing PayPal or whatever).

For me, it was always an alternative. A way to pay when other ways don't work. A way to pay person to person. A way to pay when others won't let you.

These are all the three reasons I used Bitcoin, and others I know have. There wasn't an incentive. There was a reason.

but if you research them you will see they dont have what you say
they are "2 layer" networks

a chain of blocks with multisig transactions where central and commercial banks set their reserves

commercial banks then (multisig) their reserves between each other to settle their commercial end payment route of their subnetwork funded reserves

below that they have the commercial banks delegated to police their own customers
in a subnetwork
(imaging the pegging mechanism like blockstream liquid network)
where they only report the suspicious transactions to authorities

and the customer payments between
the commercial bank-customer subnetwork as not a hop& spoke model like the failure of LN but instead its the hub('factory'/watchtower) model

where the hubs(commercial banks) give out inbound balance to customers

its no shocker why certain groups are playing around with certain idea's, where those idea's didnt actually form naturally from crypto guys. it formed from them being part of the corporate bank hyperledger design committees, injecting and influencing suggested proposals to the crypto community. and using crypto as the sand box test of open source coded programmable money
(in short cryptocurrency devs did not invent the buzzword "layer 2")
(in short the banking groups got cheap labour prototypes to emulate.. via crypto development, whilst we got delays and stalls in scaling solutions, while devs 'played possum' of bitcoin. whilst actively sandboxing idea's inspired by the corporate banking world)

There is nothing to compete about here, CBDC is going to be the digital stable FIAT, why compare this with something that's comparable to GOLD? Also Bitcoin is volatile which creates opportunities for newcomers and also keeps the balance in different cycles. Do not expect too much of CBDC because it's just going to be like USDC.

CBDC will support crypto for sure though.

You should ask the opposite question, can CBDC compete with bitcoin? Because bitcoins are created first, and CBDCs are being created. But it doesn't matter who is trying to compete, what matters is that CBDC is not comparable to bitcoin. To me, CBDC is no different from fiat money, it is just a digital version of fiat, and we already know that fiat is not comparable to bitcoin. Not only CBDC, but I believe in the crypto industry, no coin can compete or surpass bitcoin, bitcoin is king and always will be king of crypto.

I totally agree with your opinion, CDBC is a bank project while bitcoin is a decentralized digital token, so we shouldn't compare bitcoin with CDBC, because CDBC has an Explorer or a book that can see everyone's transactions so that it is controlled so every time we make a transaction the government knows where to go of our transactions, of course we are vigilant including myself personally because our account data is tracked to who and where it went.

Not to be cynical about Bitcoin but Bitcoin is king it comes first when you think of a currency, if you browse through the forum thoroughly, you will see this particular question has been asked over again.

Central bank's digital currencies are just an upgrade of fiat currencies.

Bitcoin gives one the power to run its own nodes and transfer it between countries making it borderless, but central bank's currencies can not be transferred in a split seconds. You will have to exchange to another to send to that country.
Asides that looking for a merchant to run this can be quite stressful, with Bitcoin less stress is involved. This should be the last time you think of comparison between Bitcoin and Central Bank Digital Currencies.

banks already had digital payment methods
banks are not competing against bitcoin
banks actually want to invest in bitcoin(see BIS reports for proposals for 2025)
banks actually want to service customers in-house and compete and destroy payment services like visa/mastercard

It's actually opposite as government are trying to compete with Bitcoin through introducing these CDBC and giving people digital payment access but it's the same like any other digital payment but the only thing they add on is Blockchain technology but if you say about competing with btc then there's no chance at all as we are comparing centralised token with decentralised coin so what do you think about it?

CBDC do not have backed value.. fiat had its EO 6102 attack decades ago and now banks dont want value store.. thus avoiding such attack ever again
they have utility laws (min wage/taxes/fines/debt) which are not economic number value.. but sentimental "values"(totally different things)

bitcoin does have economic value. and its not as simple as a eo6102 attack to remove it
all that an attacker would be creating is a new separate currency which no one likes(altcoin)
if governments pressured businesses to legal tender then altcoin currency and remove "currency" utility from the standard bitcoin.by those services 
then standard bitcoin no longer defined as a currency..(no government financial  jurisdiction) so it gets its freedom back and is defined again as private property. which governments cant then regulate as a currency because they took themselves out of such

businesses can be merchants instead of exchanges(like pokemon trading auctions)  and still offer swaps. without the regulation hassle of 'currency jurisdiction'

 This question being asked is like giving CBDCs much importance. Bitcoin is an independent decentralized digital token that runs on a principle of transferring of control and without an established value or backing, whilst CBDCs has the backing of central banks!
 Also, since a CBDC is a project of the bank, it's liable to be susceptible to an EO 6102 attack, which makes it less safe compared to Bitcoin that can be stored on a wallet.

You are asking if gold can compete with manure, which is adapted to the Internet age we are in. Either they don't compete because they have nothing to do with each other or if they do compete gold always wins.

I suppose there will be people very enthusiastic about CBDCs, as with everything that comes from the establishment, but people who know they are the same garbage as fiat, or even worse because they allow better government control as mk4 points out, we will be very careful.

Why do you think CBDCs are any different than your typical fiat currency? CBDCs are pretty much just fiat, but worse due to higher surveilance and likely higher governmental control.

Bitcoin = bunker where you store long term savings
Bank with CBDCs = pocket change for fast spendings

Of course, I would tell moonboys to look into proper index funds as well for long term savings and don't go 100% BTC for long term savings. And definitely think twice before thinking about any altcoin as something you would park money long term.

To compete with something you have to be in the same category, it is like asking if a racing car can compete with a swimmer! They just don't work in the same sport. Bitcoin is a decentralized global currency that doesn't need a middle man while CBDC is the same centralized fiat system controlled by the same centralized authorities and suffers from the same problems (and some additional ones since it is CBDC).

In other words Bitcoin will remain the same alternative solution for those who want to reach financial sovereignty and exit the centralized monetary system even if it is a partial exit.

central banks/commercial banks used for decades bridged subnetworks (visa/mastercard) for daily purchases where the base network of the BANKS are for savings/settlements

layer 1              layer 2
wire transfer vs tap&pay
bank account     visa/masterdard

CBDC is going to be no different a blockchain base layer for the central-commercial wires. and a second system for the person to person payments (via the base system in the background settling up those movements)

the difference between crypto and CBDC is  crypto=deflation cbdc = inflation

so think of crypto mainnets as pensions/savings but with more freedom to spend without banking limits and fuss, and where your savings/accumulations do give good returns on the long term(more groceries per $100 initially invested n crypto)... unlike banks where you end up getting to buy less groceries per $100 the longer you save

oh one last thing. bitcoin has many sub networks that offer the niche "fast payment"
but im afraid LN is not a bitcoin only feature and not the solution. its 7 years old and has had multiple "failures to launch"
there are other subnetworks that are under 2 years old that have locked up more liquidity and are doing more.

but bitcoin also needs to scale too as a base layer and not just push people to subnetworks

With the current state of market trust what will incentivize the average person to use bitcoin over a CBDC?

Since banks can control supply they can use inflation and other mechanisms to encourage spending. Bitcoin on the other hand requires additional layers to handle even the current network traffic and lacks incentive for day to day transaction use.