Topic: Goverments creating digital currencies - Threat or Opportunity? - page 15. (Read 3542 times)

Actually those countries who have created and will create their crypto currency is not a threat because even if they created their own virtual coins, still nothing can beat bitcoin due to its performance and popularity. Those coins made by different countries will help the crypto world's economical status because it shows that the population here in the crypto world grows fast.

If any country want to start their digital coin then we have to welcome that because we have to let the governments to learn about the digital coins if they will learn it then they will also learn that bitcoin is not a bad coin and they will know that bitcoin is a more favorable coin and people like it. Then in the long term it is also possible that states adopt bitcoin to replace their own created coin.

The threat part depends upon which country you are living, if you are under a dictator rule then if every transaction is recorded and if watching porn or gambling will end you in jail then you will not take the risk in having those digital centralized coins, i will avoid them like a plague and i am expecting more countries coming up with their blockchain based digital currency and in the next 5 years we might see a lot of them and how long they can be successful is a big question.

Governments will not lose the opportunity to generate liquidity for their economy in any way, the difficult thing is that they can succeed, the case of China is undoubtedly one of the most controversial, however, compared to Libra, they have proven to have a great fear.

 The case that has had more failures, including injecting a large amount of inflation into the economy due to its use, is the case of Venezuela through the PTR, whose strategies to move it go very badly, both internally and in exports of oil, since they demand payment in PTR.

The positive thing to extract from these cases is that it will generate a massive mass adoption towards Bitcoin, which is not bad at all, the hope of some countries regarding creating their cryptocurrency is low due to centralization, that control through governments and Banking has always been present.

in my opinion the existence of government-made cryptocurrency will be a good opportunity to promote cryptocurrency to everyone. the government can easily order its citizens to use government-made cryptocurrency. and if some people already know cryptocurrency then I'm sure next they will know bitcoin and altcoin. and then will use and invest in bitcoin and altcoin.

See if you talk about the utility of cryptocurrency in the form of low fee in case of inter countries transactions, transparent records and fast transactions, then yes, these state owned cryptocurrency would outrun Bitcoin.
But Bitcoin is more of a promise to give people a decentralized form of currency system. This made people support it as a community. No state owned currency can take away that advantage from Bitcoin and replace it.

it definitely is centralized. No sane government or central bank would give away their power to create or destroy money and put stimulus on the economy.

This is why a decentralized approach won't work in central bank world. The population still thinks that these people are neutral and not political, which couldn't be further from wrong. Especially with politicians like Christine Lagarde at the top, this statement of neutrality can't be true anymore with a french puppet on top of a central bank.

Crypto currencies serve a very different need, and that is to diversify from your local currency to a world wide market, although much thinner in volume and market cap.  Talking back about government issues crypto currencies, I don't believe they need a crypto in its fancy name. Most of the cash is already digital and it will only get worse in the future.

Sound like centralization, if a government create their own crypto-currency then likely it would centralized. But it would positive for overall crypto economy. I don't think there is much threat for current crypto economies. When national crypto-currency will launched I think at the same time crypto-currency will legal for a country. There would trouble about financial freedom, because government will monitor you when you will use their currency. Anyway, we would realized the fact if any government create their own. Before that we can't say anything.

Thanks for all the answers. I agree with all of you that it is both a threat and an opportunity. Unfortunately, only time will tell us what will really happen.

I have always thought it will come down to this. It’s all good. If the government decides to venture well into cryptocurrency, either by creating their own or not, it will not only improve the confidence in the market but also create more boost in the awareness.
It will be wise to accept the introduction of governmental cryptocurrencies. That way, they could accept the present cryptocurrency market more.
Only time will tell what people want; the government crypto or the others.

If this will not going to manipulate all people in their country then it is good to use a government crypto currency. however, government is have the powerful rights to trace our transaction and if this happen they will limit us to use a certain amount of money they will control our usage everyday or month, year. we know that government had the dark side to control its people. but we will see, because there is still bitcoin to balance everything in digital world.

Crypto or coins made by the government is just like 100% fiat although it can be called e-fiat instead.We know the difference

between decentralized and centralized ones thats why telling digital currencies made by government doesnt really fit that criteria.

Threat or opportunity? None of the above yet this is just like fiat.

Governments creating their own digital currency can rapidly increase the adoption of digital currency but not the one we like, like Bitcoin. If government tries to create their own, they won't let their people to use decentralized cryptocurrency because it will be a threat to what they have created. It's an opportunity to recognize decentralized crypto but once it gain so much attention and most of the attention diverted to decentralized than their own digital currency, the government can possibly start to strictly regulate decentralized crypto.

Let's say that they adopted the use of cryptocurrency in their country. The conclusion for that is they see that it has a good effect proportional to the growth of their economy. That's why their development is increasing compared to their society without cryptocurrency. I think that in some point it is an opportunity for them to become a developed country.


As they observed the different effects of having decentralized and centralized coin, what if the other one was implemented? Would it be okay if they also choose the other option? If that so, then I will prioritize the centralized coins where I can manage it with my own manipulation.

I would honestly consider it to be neither.

I would definitely not call the introduction of central bank coins a blessing for BTC, because of the fact that it has nothing to do with the whole decentralization movement that bitcoin is based around.

It is also not a direct threat to bitcoin or other decentralized cryptos per se because of that fact. Bitcoin has coexisted alongside fiat for a long time, and given that centralized bank coins are exactly fiat in another form, it is very unlikely that BTC will all of a sudden be driven out of the market because of these coins.

The truth is probably somewhere in the middle, instead of these extremes.

There's only one positive thing about governements trying to create their own blockchain/cryptocurrencies.
The goverment will invest into the education of more programmers and blockchain developers.Those developers might later join the Bitcoin Core blockchain and help with the further development of BTC,by bringing new ideas and expertise.Anyway,the government coins might not be decentralized,hence I don't think that they would be real cryptocurrencies.

Exactly, this is going from bad to worse and it's going to be such a smooth transition nobody will even notice it.

Anyone who tries their best right now to do tax evasion or anything else you're not supposed to do will have no choice but to respect every little law out there as soon as this becomes a thing.

"If these ever get implemented" it's not an "if", they will. China, Russia, Japan and all the other countries aren't working on & testing a national cryptocurrency just for the fun of it. Basically, whoever was able to evade taxes or whatever else will have no way of doing it again. Like I said yesterday, it's going to be the worst version of fiat we can imagine, traceable fiat wearing the costume of a cryptocurrency so it sounds cool to the human ears. The horror part is, it's going to be traceable in every kind of way. They'll know where every penny goes and comes from.

So it's not a threat to cryptocurrencies unless everyone who has not studied Bitcoin yet would believe their sh*tty national cryptocurrencies work the same way BTC does. Because many of the people already using cryptocurrencies have a false image of what's a cryptocurrency and what isn't, thanks to those sh*tcoins and centralized tokens.

However, it is a HUGE and disastrous threat to our privacy. The strategy is simple: step 1 - attract all these fools and present them this "100% legal cryptocurrency" & pull the "Bitcoin competitor" card out, and step 2 - take more control over our privacy than ever before and know everything about the way we spend & receive money.

Scary.

I consider that national digital currencies is neither threat, nor opportunity for us. Digital currencies are more like unsuccessful attempts to steal the idea of Bitcoin.

Honestly they are not cryptocurrency rather digital currency just like normal other digital version of fiat. We must have our concepts clear about crypto i.e decentralized and distributed. So these government backed cryptos are not opportunity nor threat to real cryptocurrency.

Cryptocurrency backed by governments is just fiat currency trading over the blockchain...it's not cryptocurrency by the definition we use. The primary rules of cryptocurrency are (1) ownership should be decentralized and (2) the money supply is finite. Now these aren't laws, just general defining characteristics.

Is China agreeing to stop printing money? No.

In fact, having government backed currency trade over a blockchain just ensures that they can watch an record every single transaction.