Topic: Could CBDCs defeat crypto in the long term? - page 2. (Read 319 times)

I don't think that crypto is going to be the one that will bring into the competition with cbdcs but, it's the traditional payments that we have. We can separate cbdcs and cryptos to the use cases that they should have. The governments might think that it's going to be easy for them to implement these cbdcs but look how few the countries are that's using the cashless transactions in daily living although, they can enforce it through their authority. That's why they'll put it to test and will wait for the results and reaction of the people which will be involved in the adoption of cbdcs.

In this term competing as a payment system, I think cryptocurrency will be beaten to the pulp.  Remember CBDC is government issues monetary system so it is automatically a legit mode of payment and will be entirely used by banks and businesses without any problem at all.  Cryptocurrency can easily be beaten in terms of adoption once this (CBDC) system is implemented.  I am not against cryptocurrency, I like it actually, but let's face reality.

As a means of payment, decentralized cryptocurrency and digital currencies of states will compete with each other. Most likely, it will be the existence of two different branches of financial digital assets. Despite their fundamental difference, these two directions in digital currencies should coexist. Both of them will have their users and will sometimes be in the same payment cards.

There is probably competition but not very different from what we have right now. There will always be competition if there is more than just one currency in use within a single jurisdiction. And the government will either allow both to be acceptable or ban the other. That's the status quo. 

I don't think the rise of CBDCs will obliterate cryptocurrencies. After all, CBDCs are most likely for domestic use. When used in cross-border transactions, there may be necessary conversions first and most probably with high fees. Bitcoin, for example, is borderless and will make you save a lot.

I agree with you that CBDC can never defeat Crypto in the long run because Crypto is so popular and so powerful that it cannot be broken by the government Many countries around the world are supporting crypto and becoming more powerful. No one can compete with crypto The bank has not been able to replace crypto so far  In that case, even if the CBDC is under the control of the government the demand will decrease.

For every action, there is a reaction. No government is ultimately powerful. If some political powers start pressuring crypto, the opposition may turn it to their benefit by promising the population to defend crypto. Besides, blockchain is an advanced technology and will obviously continue to evolve. Oppressing the technological progress is a pathway to oblivion. Of course, there are some autocratic governments (like North Korea, Russia or Iran) that aim to throw their population back to the stone age, because it's much easier to rule a brainless flock of sheep, but we can claim that the governments of most developed countries are not so stupid to fight technology.

I would say that cryptocurrencies will be able to occupy their niche, but they will not be able to completely defeat fiat currencies, just like fiat currencies will not be able to defeat cryptocurrencies. Countries also treat cryptocurrencies in very different ways, someone legalized, and someone forbids.

Launching their own digital token is like harming their own banking system because there won't be any need of banks if we are moved to the digital currencies created by our governments.And also its more like the physical cash which is already existing in the digital form so I don't think it will have effect on decentralized mode of payment at any point.

What I think of CBDCs is that they are really the future of cashless society that we are dreaming for, we can't stay this way with bitcoin pushing it to be a currency of the future coz I think there are more chances of it being a investment, or any crypto at least. As @Jackg says " Bitcoin is a deflationary coin whereas a cbdc would be an inflationary currency so they are not competing in the same markets.", I agree, they won't fall on the same market and competition would not be that much of a problem. But at the end of the day, it is still people that will choose what currency are they going to use in their own way.

There's no ways CBDCs can defeat cryptos in an ethical way. It can only happen if a government chooses to impose a ban on cryptos and creates legal provisions for severe punishment.

Technically government cannot curb the usage of cryptos and I believe, Russian central bank also admitted the same few months back. So the only way left for government is to create fear among the crypto users of their country.

However, I don't see it happening in foreseeable future. While a lot of countries are discussing to implement CBDCs, only one country has started their trial run. So it's easier said than done!

Exactly. We all know this has been an experiment since day one. Even after 11 years since BTC's inception, the crypto space is still not mature for the mainstream world. I'm guessing that once crypto is robust enough for mainstream payments, other countries will be able to fully implement their own CBDCs. Then, people won't have a need for crypto (expect those who value decentralization/censorship-resistance) since a CBDC would do the same thing with a stable price. Interest into crypto might continue to decline, until CBDCs are used on top of anything else. Decentralized cryptocurrencies like Bitcoin and Ethereum will still live alongside centralized digital Fiat, but they'll be used by the minority.

In authoritarian governments like China and Venezuela, the use of a CBDC could be enforced. People will be penalized if they're caught performing transactions in decentralized cryptocurrencies. The rest of the world could continue as normal adopting crypto alongside Fiat in every way. One thing that makes crypto unique from Fiat is its deflationary model (Bitcoin). No government will allow its CBDC to be deflationary, as it gives people more spending power. They want something they can control and manipulate to their own needs. An inflationary CBDC will be no different than physical cash today. Instead of printing money like crazy, central banks would simply issue new coins on the centralized Blockchain ledger.

Nonetheless, no one knows the fate of crypto in the future once CBDCs are released. My hope is that both could live alongside each other for the foreseeable future. But as central banks and governments consider crypto to be a threat to the existence of the world's monetary system, they could do anything in their power to stop its use worldwide. The best way to do this is by cracking down on centralized exchanges until there's no way for people to get access to crypto directly using Fiat. While DEXs, atomic swaps, and in-person trades are still an option, they're not as liquid as centralized markets. If that happens, then CBDCs will ultimately win. Just my thoughts

Definitely, as major countries now are looking for digital currencies, most are making their own is a threat to cryptocurrency. The government will not allow any decentralized body to take over the control on the economy's brain, financial, that will evade everything on their premises. In short, if we are fan of digital decentralized currency they will make a way to promote their own centralized currency, as simple as that.

Since they cannot shut down decentralized entity by any means, it will be a joint forces of centralized and decentralized currencies in the future.

How about you guys? Would you want your transaction to be anonymous and privacy relative or stick with traditional one but digital?

Cryptos like bitcoin are a prototype, they're iot the final solution and they continue to be adapted and evolve.

It's handy to keep an open source borderless currency in usd if you're using one yourself as a country because open source software is patched a lot faster than governmental software... These will also be two completely different things.

Bitcoin is a deflationary coin whereas a cbdc would be an inflationary currency so they are not competing in the same markets...

Now that there have been talks among central banks in launching their own CBDCs, the fate of crypto could be at stake. Governments wouldn't allow anyone to use alternative currencies in order to enforce the use of national digital currencies (CBDCs). They might believe that decentralized crypto is the threat to the existence of the world's monetary system. Such events haven’t happened yet because central banks are still attached to physical cash. Once they're able to "be in par" with crypto, they might do anything at their disposal to prevent people in the mainstream world from using cryptocurrencies like Bitcoin and Ethereum.

What are thoughts? Do you believe that at some point in the future, CBDCs could defeat crypto? Or will CBDCs co-exist with decentralized cryptocurrencies for the foreseeable future?