Central bank digital currency will improve the use cases and value of Bitcoin

bryant.coleman

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Quote from: iv4n on August 21, 2021, 07:22:24 AM

Let's not mix fiat digital currencies with crypto! That fiat digital will not change anything that's important, fiat will still be fiat, just in digital form, but with the same people on the top who are running the show as before! The only good thing that will come out from this will be rising awareness of digital, but when people start to understand digital they will move to crypto as something better than fiat!
Istiak2277 is right, not all countries will try to discourage people from using crypto, some will/are very opened and friendly to crypto! I believe we will see more of that in the future, and the ones who oppose strict rules about crypto will have to rethink their decisions in the future!

Agreed.

Also, fiat currencies can't compete directly against cryptocurrency, since one is protected from inflation and the other is not. So obviously the government will not allow fair competition. In most of the cases (China is the prime example), all the government wants is to eradicate decentralized cryptocurrencies such as Bitcoin and replace them with their CBDCs. And it is not just China, countries such as Vietnam and India are also planning to do this. Anyone here really think that BTC can be replaced with CBDC? At least in my case, I don't think that it is possible.

iv4n

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Quote from: istiak2277 on August 20, 2021, 04:38:57 PM

Quote from: Findingnemo on August 10, 2021, 12:22:46 PM

I don't think government is making any changes in ther policies to give better monetary policies but all they are doing is regulating it as assets and imposing huge taxes so people can avoid using it just the same concept of using cigarette and alcohol, the high taxes means the government is discouraging the usage.

Not all of them are doing it. El Salvador-like countries will try to implement in a good way. I think govt will not issue high taxes but they will try to regulate the whole system so that people won't enjoy full freedom in their money. That is why many countries issued CBDC and try to implement it in their economy. Banks are also eager to bring this digital currencies to the people.

Let's not mix fiat digital currencies with crypto! That fiat digital will not change anything that's important, fiat will still be fiat, just in digital form, but with the same people on the top who are running the show as before! The only good thing that will come out from this will be rising awareness of digital, but when people start to understand digital they will move to crypto as something better than fiat!
Istiak2277 is right, not all countries will try to discourage people from using crypto, some will/are very opened and friendly to crypto! I believe we will see more of that in the future, and the ones who oppose strict rules about crypto will have to rethink their decisions in the future!

TheGreatPython

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Quote from: Liamttw on July 22, 2021, 10:11:40 PM

CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.

Like many people have explained here already, I am also confident about people for using CBDC right now must be the late adopter of bitcoin one day or other. We could expect them to be adopting bitcoin once they are realizing the difficulties of having centralized money against bitcoins. This must be one simple reason why I am always in favor about that all government cryptocurrencies are indirect promotion for adopting bitcoins.

If you go for studying history, only versatile things are sustaining along with human race and all others are getting outdated over the time by not coping up against the requirements of ever-changing demands of human race. This way, CBDC will get outdated very soon and people will adopt something which is ensuring their privacy and profits (which must be bitcoins as of now Wink

).

Princejebs

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We shouldn't depend on these logics because when they denounce their statements, the bad side they do to the price is very bad.
Ones this institutions comes on board, the market becomes liquid and everyone start buying blindly into their idea but as soon as the government isn't please, they pull out leaving others hanging.
Tesla did same but still, they claim they haven't sold any but I'm still waiting to see their annual financial report to believe them.

istiak2277

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KUWA.ai

Quote from: Findingnemo on August 10, 2021, 12:22:46 PM

I don't think government is making any changes in ther policies to give better monetary policies but all they are doing is regulating it as assets and imposing huge taxes so people can avoid using it just the same concept of using cigarette and alcohol, the high taxes means the government is discouraging the usage.

Not all of them are doing it. El Salvador-like countries will try to implement in a good way. I think govt will not issue high taxes but they will try to regulate the whole system so that people won't enjoy full freedom in their money. That is why many countries issued CBDC and try to implement it in their economy. Banks are also eager to bring this digital currencies to the people.

kryptqnick

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Quote from: Liamttw on July 22, 2021, 10:11:40 PM

The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy. The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.

I'm not sure it's that simple. Firstly, most people seem to be okay with fiat, even though there's inflation with it, and it almost always (Japan has a famous exception) loses value over time. The only trouble they see is when fiat surfers from hyperinflation, but that doesn't tend to happen to most fiat currencies. Secondly, Bitcoin might be in trouble in some countries that introduce CBDC because it's introduced precisely as a more controllable alternative to decentralized cryptos.

jostorres

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Quote from: Liamttw on July 22, 2021, 10:11:40 PM

The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy. The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.

I don’t know about that. But the use cases for bitcoin grows naturally, as time goes on it gets more popular and a lot of people will continue to make use of it. So I don’t think it is something that will have to do with whether the government will create a CBDC or not. If we have to talk about these two, they should be discussed separately, as both can’t really have much effect on another, since they are on two different lanes. As for CBDC, since there are people who still believe in fiat, they will make use of it. But I’m yet to understand what’s happening with this CBDC and how it is work.

AicecreaME

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How will the central bank ever improve the uses and value of bitcoin when in fact it is a decentralized speculative asset? Bitcoin is controlled by market demand, not just by any organization there is. Bitcoin and central bank in a sentence shouldn't even be put together. The two are completely different. The one is centralized and the other one is decentralized.

In addition, central banks wouldn't dare to be involved in cryptocurrencies in general because it is not issued by them and it possess a lot of risks. Even the local banks here in our country doesn't acknowledge crypto as a currency so why would the global central organization do so? They wouldn't want to be related with crypto in any way because they see it not as an investment nor currency. As a matter of fact, they most banks see money that came from crypto a 'dirty money'. Hence, you can't deposit a fund that came from cryptocurrencies whether it came from an investment or trading. Anything related with crypto, most banks reject. Unless of course you'll find a bank that is crypto-friendly which is very rare in my country.

lightning0

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The operation and circulation of CBDC and the upgrading of financial system infrastructure will benefit all digital currencies and will reduce the difficulty for ordinary people to access digital currencies. Because ordinary people who understand digital currency in CBDC may like Bitcoin and strengthen their support for Bitcoin.
The central bank’s interest in developing and issuing CBDC may highlight the role of bitcoin in the global digital economy. Bitcoin allows users not to rely on the monetary policy of the central bank, nor to trust a third party to hold and transfer funds. Users need to trust Bitcoin's code and incentive mechanism to allow everyone to use it safely, credibly and openly. As the public's trust in the government weakens, bitcoin will be more accepted and promote the development of Bitcoin.

bocyaj

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Quote from: Findingnemo on August 10, 2021, 12:22:46 PM

I don't think government is making any changes in ther policies to give better monetary policies but all they are doing is regulating it as assets and imposing huge taxes so people can avoid using it just the same concept of using cigarette and alcohol, the high taxes means the government is discouraging the usage.

Huge money was involved in the investment of cryptocurrency.So the government of most of the country charging taxes from the people,who invested their money on cryptocurrency.We are paying taxes for the consumption of cigarette,alcohol.But why we are not ready to pay taxes for the investment.

tygeade

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Quote from: Caldear on August 11, 2021, 01:38:44 AM

The issuance of CBDC is a huge publicity for digital currency. When CBDC is issued, many people will learn about the existence of digital currency, and thus will also know Bitcoin, a digital encrypted currency. There may be ordinary people who understand digital currency because of CBDC, but they may like to invest in Bitcoin.
It may only play a superficial propaganda role for cryptocurrencies, but the central bank and their digital currencies will never do anything for Bitcoin. They will think that cryptocurrency will threaten their projects and will be detrimental to the development of CBDC itself.

I feel like everyone in the world already knows about bitcoin, not like anyone is left in the world who didn't hear that will end up hearing about it with CBDC. I am not saying everyone is involved in crypto, they are not, mainly the older people do not join crypto because they are already either doing fine, or do not have the time for it. However even if you are a 70+ year old person who has no interest to crypto at all, you saw the news about bitcoin skyrocketing once a year on television.

It is why it is not a shock that they will see another CBDC news but that's about it, nothing will change for them, it is just something else regarding crypto that they will ignore. I think this is the max we can reach in the crypto world at this point, we will have more and more people in the future but that will be from younger people earning money, not older people earning money.

oHnK

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Quote from: justdimin on August 09, 2021, 02:43:14 PM

Quote from: oHnK on August 09, 2021, 08:22:39 AM

When the CBDC that is regulated by the government is no different from fiat, which continues to be haunted by monetary policies that burden the people, Crypto, especially BTC, will be considered more valuable in the eyes of the public. Isn't everyone now fed up with the centralized market while we already know crypto apart from it all. Now what matters is whether you trust the government or the market more? If you believe the market can bring a better economy, then crypto will be sexier than CBDC

I know that it is not really "that" different from fiat but it is a bit different, in the sense that the tech behind it is a bit different and that matters a lot. This is basically a way to tell the world that governments are making their own crypto now, I know it may not be exactly like a crypto currency but it is a good marketing plot for us that we can use to improve crypto.

Plus in the situation, where CDBC actually gets listed on places like Binance and all, that would mean that exchanging will be easier. Why in the world anyone would ever want to hold USDT? It is just a fiat pegged stablecurrency that is 100% useless if you could actually hold dollars like that, it makes zero sense to own USDT when you can own USD, so if the American government creates their own stablecoin, that means we already have a huge demand for it proven by USDT in these past few years.

I think that usdt as a stable coin which is likened to almost the same as CBDC that will be made by America or other countries will not be very in demand in the market because I myself do not have usdt during a bull market and when it starts to bearish then I change some coins to usdt. If CBDC uses that concept, even if it is backed up by the state, I'm not interested in a centralized system anymore.

Obito

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But isn't the CBDC an opposite of what bitcoin is? So how can it be helpful in bolstering or creating a new use case for bitcoin, I just don't get it. This is just another way to prevent the finance of the government from collapsing and to be able to control the people on a financial level by tracking what they're doing.

Caldear

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The issuance of CBDC is a huge publicity for digital currency. When CBDC is issued, many people will learn about the existence of digital currency, and thus will also know Bitcoin, a digital encrypted currency. There may be ordinary people who understand digital currency because of CBDC, but they may like to invest in Bitcoin.
It may only play a superficial propaganda role for cryptocurrencies, but the central bank and their digital currencies will never do anything for Bitcoin. They will think that cryptocurrency will threaten their projects and will be detrimental to the development of CBDC itself.

Findingnemo

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Bitcoin = Financial freedom

I don't think government is making any changes in ther policies to give better monetary policies but all they are doing is regulating it as assets and imposing huge taxes so people can avoid using it just the same concept of using cigarette and alcohol, the high taxes means the government is discouraging the usage.

Kittygalore

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But isn't the current use case of bitcoin and other cryptocurrencies are already there? I mean how can we further improve or create a new use case for bitcoin because as it is right now, it seems to be that there's already enough use cases. Also, CBDC is an antithesis of bitcoin so I don't think it's going to bolster bitcoin in any way.

Gorosden

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Quote from: Liamttw on July 22, 2021, 10:11:40 PM

The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy. The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.

Isn't Satoshi a wise man? The only thing in this world that the power of the government can't control is BTC this is what makes decentralized projects powerful over centralised projects I believe, I'm also sure that BTC will become a threat in future for CBDC because the government will see that people care more about BTC than their CBDC which is also a stable coin

Irenerty

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As a new form of assets independent of the existing currency and financial system, it is reshaping a new financial form. As governments in various countries use additional currencies to solve economic crises, Bitcoin's financial value and advantages independent of the existing monetary system have become more apparent. With the increasing popularity of Bitcoin, the digitization of payment systems and the demand for stablecoins have prompted countries to explore central bank digital currencies.
The interest in developing and using CBDC may highlight the role of Bitcoin in the global digital economy. The introduction of CBDC will force many institutions to consider adopting digital currency infrastructure, while also providing users with the popularization of the digital currency economy, thereby strengthening support for cryptocurrencies. If CBDCs gain traction, they may actually enhance the value proposition of Bitcoin and other digital currencies. Bitcoin will successfully penetrate the mainstream financial system and occupy an increasingly important position.

cabron

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What currently is going on today with the senate debating about the law in cryptocurrency is proof that they are really up to get every detail we have. Even the stakers in crypto are obliged to ask KYC is alarming enough to object. CBDC is their only way because the crypto community is fighting back against this bill.

They will make the CBDC more thorough in making surveillance of the people.

Hydrogen

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Quote from: Liamttw on July 22, 2021, 10:11:40 PM

The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds.

I think the only thing that will truly incentivize institutions to better manage things, is people making an effort to be more informed and better educated. To cite an example of this.

Americans always complain about healthcare and how bad it is. Very few americans can explain exactly how healthcare is broken. The majority do not understand problems and obstacles related to reforming healthcare. Not knowing the basics on healthcare renders people powerless. Whenever a good healthcare proposal is put on the table, the media fools the public into hating it. And every time a terrible healthcare proposal is on the table, the media fools people into supporting it.

Accurate information and understanding issues are the most relevant ingredients determining what institutions can get away with it. The only way conditions will improve is if people can do a better job being accurate on topics and supporting the right people and policies.

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