Governments will issue "stablecoins" on existing main stream blockchains

Abiky

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Quote from: bitgolden on December 20, 2022, 10:44:31 AM

Web-wallets and centralized exchanges are few example where the real purpose of bitcoin started diluting still we need to accept and move on for time being as not all the people around the world could get into a compete decentralized environment all of sudden. Similarly as we cannot have a complete decentralized stablecoin, we got to use bank pegged stablecoins right now; I agree it defeats the purpose of bitcoin and decentralized still we got no other options left.

Governments most probably may have their own blockchain to issue CBDC as I am highly sceptical about governments to use a truly decentralized blockchain for their CBDC. If they are ready to be decentralized then they may not issue separate coin but will adapt bitcoin or any other altcoin.

There's virtually no reason for a government to choose a pre-existing blockchain network that would serve as the base layer for its own CBDC. Governments want to have full control over their currencies, so their best bet is to launch a new Blockchain network that would help them achieve said purpose. While I agree that crypto is becoming centralized, not everything is as bad as it looks. People still have the choice to dive into full decentralization if they want to exploit crypto's full potential. It'll be difficult to do so due to governments' increasing tactics against crypto/Blockchain tech, but definitely not impossible.

Nonetheless, I believe CBDCs won't make any difference other than mark the beginning of the end for paper money. I wouldn't care about this, as long as I have an escape route from banks (which is crypto). Who knows if crypto lives alongside CBCDs for generations? Just my thoughts Grin

MFahad

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if you guys actually think crypto will recover to anywhere near where it was you're literally delusional and huffing copium. Irrepairable damage has been done and confidence in crypto has been completely shattered. The only thing coming up is heavy regulation and a governement token

tvplus006

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I have not previously seen that in some country the government is working on the issue of a stable coin, as this remains the lot for private campaigns. Obviously, OP confuses a stable coin with CBDC, which is a different form of money that will function on a par with cash and non-cash forms.

bitgolden

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

FULLY digital dollar coming to a block chain near you!

Web-wallets and centralized exchanges are few example where the real purpose of bitcoin started diluting still we need to accept and move on for time being as not all the people around the world could get into a compete decentralized environment all of sudden. Similarly as we cannot have a complete decentralized stablecoin, we got to use bank pegged stablecoins right now; I agree it defeats the purpose of bitcoin and decentralized still we got no other options left.

Governments most probably may have their own blockchain to issue CBDC as I am highly sceptical about governments to use a truly decentralized blockchain for their CBDC. If they are ready to be decentralized then they may not issue separate coin but will adapt bitcoin or any other altcoin.

vv181

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I completely read OP, you might be misunderstood.

My points are stand still. Now, let me ask you whether such scenarios are likely to be implemented.

First, the government unlikely issues stablecoin/token, they already have CBDC. With that in mind, how and why does implementing a token where it relies on the mainstream blockchain truly beneficial to the government itself?

Second, let's say goverment does manage its own token, how do they implement the account verification purpose, so the user is able to use their "FIAT"?

Guessti

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Quote from: vv181 on December 07, 2022, 01:03:26 AM

Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

The government won't build things based on a decentralized system like Bitcoin. If they want, they can directly host it on their own system instead of relying on some blockchain.

Quote from: Guessti on December 05, 2022, 10:30:56 PM

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Well, does anyone want to have a currency, globally, which controlled by China?

Quote from: Guessti on December 05, 2022, 10:30:56 PM

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

This is the problem of trust and transparency of a company like Tether, it definitely defeats the purpose of trustless and permissionless nature. Nevertheless, the government won't work the way you stated in this thread. They won't directly incorporate a system, especially, a decentralized one, with their own currency. They must maintain some barriers like KYC or AML, and the country its own interest. If one currency is directly incorporated with let's say a Defi system, a layer where identity verification exists is a prerequisite for the government implementation.

You didn't read my post at all.

Fundamentals Of

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Quote from: bittraffic on December 06, 2022, 10:22:16 PM

Quote from: Fundamentals Of on December 06, 2022, 10:14:01 PM

Quote from: bittraffic on December 06, 2022, 12:04:43 AM

Quote from: Fundamentals Of on December 05, 2022, 11:51:15 PM

Quote from: Guessti on December 05, 2022, 10:43:18 PM

Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

They will issue money using blockchain in the future. That is expected to happen. That's what CBDCs are all about. But we should not be talking about Bitcoin's permissionless blockchain or Ethereum's blockchain. They won't issue money using those blockchains because they are not blockchains that the government can control. They will definitely be using private blockchains, their own blockchains that themselves have the authority to control. So let's forget about the government using existing blockchains for their currencies. That's not possible.

The adoption of this CBDC with a new blockchain might not be massive since there is no user base yet. It could be a reason why they were suing some blockchain to gain control of it like the XRP.

With Eth, the SEC may have control over it after all it's now a Security. and they could easily make users trade with this stablecoin. Just my theory.

User base is not a problem with fiat currencies. If a government creates a CBDC and released a wallet for it, it is not like a small start-up company trying hard to gain attention from potential users. Anybody who is a citizen in whatever country will have to use its legal tender. The user base will always the entire population. The government don't have to steal a private blockchain in order to issue its CBDC. They have all the resources in the world. They could easily create a blockchain on their own and according to their own specific preferences.

Its gonna be gradual since trust will be the issue with the new blockchain.
Forcing people to go into thier blockchain might work the majority of the population anyway doesn't care about privacy but for those who are privacy-concerned individuals, it's not. If the word spread that CBDC is spying on them, they will eventually just avoid it unlike if the people have no choice. I think it's what happened in Nigeria, people are still not using CBDC.

But if they take over stablecoins like Tether or USDC, it's a different thing. The ones who are already hiding from them are already there.

It's gonna be gradual because it cannot be fully implemented at once. It can't just be imposed all of a sudden. It will have to be a step by step process like what's happening in many countries right now slowly limiting cash transactions.

The majority of the population would only follow what's being implemented by the government. They know they're being monitored every step of the way. They have bank accounts. They submit all their personal information. They have cards and they know they're being located every time they swipe them. They have registered mobile numbers. The government is always spying on them and they know that.

I think it would be more troublesome if governments would takeover existing blockchains. And so far, no government has done this ridiculous thing.

Abiky

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

Bitcoin better get ready to support more functions, though moving at a snails pace you can little by little do more with Bitcoin than people know. Wink

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Sure, we hate printing of money, but at least we can more actively see the MINTERS of USDs and what happens to that money.

Physical cash is a MASSIVE waste of power and resources. From the materials its made out of, to the machines that create it, to the endless agents who have to find counterfeiters, to the banks hosting money on centralized ledgers, the list just goes on and on.

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

FULLY digital dollar coming to a block chain near you!

I don't think governments will dare to launch their own digital currencies on public blockchain networks, especially when such networks are decentralized. They'd probably want full control over the system, so it's likely they'll create a so-called private "blockchain" network of their own. Considering that most (if not all) popular cryptocurrencies we know and love today are open source, governments could simply use their code to help achieve said purpose. It should only be a matter of time before privately-issued stablecoins die, paving the way for central banks to launch CBDCs at full force. It really doesn't matter what they will do in the long run, as long as we have decentralized alternatives to Fiat such as Bitcoin and Ethereum.

Fiat will continue to evolve, as it adapts to the latest trends in technology. But that doesn't mean it will destroy crypto for good (or vice versa). Crypto has come a along way since Bitcoin's inception, so it's likely digital Fiat currencies (CBDCs) and decentralized cryptocurrencies will co-exist for generations. Who knows how our society would look like with these kinds of intangible currencies at play? Just my opinion

KaliLinux

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

Bitcoin better get ready to support more functions, though moving at a snails pace you can little by little do more with Bitcoin than people know. Wink

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Sure, we hate printing of money, but at least we can more actively see the MINTERS of USDs and what happens to that money.

Physical cash is a MASSIVE waste of power and resources. From the materials its made out of, to the machines that create it, to the endless agents who have to find counterfeiters, to the banks hosting money on centralized ledgers, the list just goes on and on.

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

FULLY digital dollar coming to a block chain near you!

I don't know how I feel each time I see someone writing stuff like this. I understand you are just imagining things that you think would possibly happen but, why would the Government, any Government create their digital money on any existing blockchain? are they going to take over the chain or will they leave the control of the country's money to the dev of the chain? You do understand that this is one aspect they are fully in control of. So what happened to all the CBDC? Isn't that their so-called digital currency? It is not happening.

AakZaki

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Quote from: doomloop on December 06, 2022, 11:09:32 AM

I think it is the banks which issue money but the government are only ordering them if how much they will need to print. If some of them are corrupt then some of the money will fall in the wrong hands or will be misused. On the other hand, stable coin being tied with the actual money is I think a good idea because people are doubting stable coins before thinking that it wasn't backed by anything.

With the help of blockchain, it's now possible to see their transactions but don't be happy just yet. Don't forget that they won't issue it on traditional blockchains and we don't even know if it's possible. They will create their own so I think manipulations are still possible there.

So it's not entirely blockchain technology if it can still be manipulated. The government will not fully use Blockchain technology because they are not happy with the records that are made by blokchcain which are transparent and cannot be arranged at will. So it is definitely not possible to use the existing blockchain. governments will create their own system that can be set according to their wishes.

ven7net

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

Bitcoin better get ready to support more functions, though moving at a snails pace you can little by little do more with Bitcoin than people know. Wink

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Sure, we hate printing of money, but at least we can more actively see the MINTERS of USDs and what happens to that money.

Physical cash is a MASSIVE waste of power and resources. From the materials its made out of, to the machines that create it, to the endless agents who have to find counterfeiters, to the banks hosting money on centralized ledgers, the list just goes on and on.

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

FULLY digital dollar coming to a block chain near you!

Talks about creating state digital currencies have been going on for a long time, and there have even been many pilot projects in different countries and they seem to have been successful. All this tells us that the world is preparing for the introduction of digital currencies, but here it is important to understand that it is unlikely that countries will use blockchain systems, but on the contrary, they probably already have their own similar systems that are ready for use. Of course, state digital currencies must be stable and it is they who will be able to solve the problem with fiat money, namely the problem of irreversible inflation, and will also be able to facilitate the process of making purchases and sales. So sooner or later the world will switch to new digital currencies, which means that we need to prepare for this transition.

Jawhead999

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LOL

Did you think every blockchain is decentralized? there's a private blockchain where the developer can hide it and only few people can see the blockchain recorded. Bitcoin purpose is to defeat centralized banking system, but almost all cryptos are centralized and doesn't have same purpose like Bitcoin! Actually the coin that has a same purpose like Bitcoin is got delisted in many centralized exchange since they can't control the coins.

vv181

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Quote from: Guessti on December 05, 2022, 10:30:56 PM

Using existing blockchains such as Ethereum and maybe one day Bitcoin they will bypass the banking systems completely and create a fully digital form of the dollar, hosted on blockchains.

The government won't build things based on a decentralized system like Bitcoin. If they want, they can directly host it on their own system instead of relying on some blockchain.

Quote from: Guessti on December 05, 2022, 10:30:56 PM

China failed at creating a global digital currency, they didn't use the blockchain and its centralized.

Well, does anyone want to have a currency, globally, which controlled by China?

Quote from: Guessti on December 05, 2022, 10:30:56 PM

It just doesn't make sense to have a stable coin "linked" to a bank somewhere. Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

This is the problem of trust and transparency of a company like Tether, it definitely defeats the purpose of trustless and permissionless nature. Nevertheless, the government won't work the way you stated in this thread. They won't directly incorporate a system, especially, a decentralized one, with their own currency. They must maintain some barriers like KYC or AML, and the country its own interest. If one currency is directly incorporated with let's say a Defi system, a layer where identity verification exists is a prerequisite for the government implementation.

noorman0

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[Nope]No hype delivers more than hope

Quote from: Guessti on December 05, 2022, 10:42:32 PM

-snip-
If we must have them, then watch--

Quote from: Guessti on December 05, 2022, 10:43:18 PM

-snip-
just watch.
...
we all can see whats going on.

You're just letting people speculate about your future thoughts, but let me brush that aside.
If you mean the government is going to issue a stable coin (officially) with another term or symbol besides the countries having their own currency, it's not a waste of work? A country's currency can even be created with multiple physical and digital versions without compromising controllability.

tbct_mt2

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Stable coins so far are used to mention about altcoins which are created by non-governmental parties.

If you imply about another representative of fiat currency which is created by governments, central banks, it is CBDC term.

What do you need to know about CBDC?

Here

[Guide] All about Central Bank Digital Currency
CBDC tracker which is helpful to get information about CBDC growth globally.

bittraffic

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Quote from: Fundamentals Of on December 06, 2022, 10:14:01 PM

Quote from: bittraffic on December 06, 2022, 12:04:43 AM

Quote from: Fundamentals Of on December 05, 2022, 11:51:15 PM

Quote from: Guessti on December 05, 2022, 10:43:18 PM

Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

They will issue money using blockchain in the future. That is expected to happen. That's what CBDCs are all about. But we should not be talking about Bitcoin's permissionless blockchain or Ethereum's blockchain. They won't issue money using those blockchains because they are not blockchains that the government can control. They will definitely be using private blockchains, their own blockchains that themselves have the authority to control. So let's forget about the government using existing blockchains for their currencies. That's not possible.

The adoption of this CBDC with a new blockchain might not be massive since there is no user base yet. It could be a reason why they were suing some blockchain to gain control of it like the XRP.

With Eth, the SEC may have control over it after all it's now a Security. and they could easily make users trade with this stablecoin. Just my theory.

User base is not a problem with fiat currencies. If a government creates a CBDC and released a wallet for it, it is not like a small start-up company trying hard to gain attention from potential users. Anybody who is a citizen in whatever country will have to use its legal tender. The user base will always the entire population. The government don't have to steal a private blockchain in order to issue its CBDC. They have all the resources in the world. They could easily create a blockchain on their own and according to their own specific preferences.

Its gonna be gradual since trust will be the issue with the new blockchain.
Forcing people to go into thier blockchain might work the majority of the population anyway doesn't care about privacy but for those who are privacy-concerned individuals, it's not. If the word spread that CBDC is spying on them, they will eventually just avoid it unlike if the people have no choice. I think it's what happened in Nigeria, people are still not using CBDC.

But if they take over stablecoins like Tether or USDC, it's a different thing. The ones who are already hiding from them are already there.

Fundamentals Of

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Quote from: bittraffic on December 06, 2022, 12:04:43 AM

Quote from: Fundamentals Of on December 05, 2022, 11:51:15 PM

Quote from: Guessti on December 05, 2022, 10:43:18 PM

Quote from: Fundamentals Of on December 05, 2022, 10:41:56 PM

Why do you think the government would issue their currency on a blockchain they don't own? This is almost impossible to happen for many reasons. But first off, the government needs the power to control the money. So using a network they don't own and control means they will lose that power. The government will always control the finances. Otherwise, they're powerless. Another reason is that the goal of Bitcoin and the goal of the government are not really compatible.

Governments issue money to banks, and look what happens. They create paper money that ends up in the hands of who knows.

Them allowing stablecoins to be tied with money a bank "has" just means the next phase is coming.

They will issue them on blockchains directly, just watch. Wink

Now if they issue money to banks, we all can see whats going on. <3

They will issue money using blockchain in the future. That is expected to happen. That's what CBDCs are all about. But we should not be talking about Bitcoin's permissionless blockchain or Ethereum's blockchain. They won't issue money using those blockchains because they are not blockchains that the government can control. They will definitely be using private blockchains, their own blockchains that themselves have the authority to control. So let's forget about the government using existing blockchains for their currencies. That's not possible.

The adoption of this CBDC with a new blockchain might not be massive since there is no user base yet. It could be a reason why they were suing some blockchain to gain control of it like the XRP.

With Eth, the SEC may have control over it after all it's now a Security. and they could easily make users trade with this stablecoin. Just my theory.

User base is not a problem with fiat currencies. If a government creates a CBDC and released a wallet for it, it is not like a small start-up company trying hard to gain attention from potential users. Anybody who is a citizen in whatever country will have to use its legal tender. The user base will always the entire population. The government don't have to steal a private blockchain in order to issue its CBDC. They have all the resources in the world. They could easily create a blockchain on their own and according to their own specific preferences.

merekamo

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While many new and existing blockchains are experimenting with different types of stable coins, like cryptographic algorithms that control the coin supply or physical assets that back it up.

A stable coin is a brilliant idea, but banks and governments will not move on their own to make it happen. While this isn't guaranteed to be an easy process, there are various methods being considered to make this a reality.

I think it's important to try and find a balance between the stability and how much trust you're willing to give to centralized institutions. In this case, people will soon be able to easily hold and spend digital cash, at a fraction of the cost of conventional banking systems today.

Silberman

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Quote from: Guessti on December 05, 2022, 10:42:32 PM

Quote from: GreatArkansas on December 05, 2022, 10:39:51 PM

It's centralized I think if they will just digitalize our fiat currencies like US Dollar.
Stablecoins now are pegged with 1:1 from fiat currency (I hope so). So the issue here is still being centralized and it is really far with Bitcoin.
So for me, I rather use Bitcoin and that is better to use globally. Bitcoin is already here, no need to use any others.

Just saying, government issued stablecoins is the answer to the audit issues.

We the people can clearly audit any minted coins the government creates, we can't so much with the banking system and paper cash.

Stablecoins are here to stay, even though I'm not a big fan of them.

If we must have them, then watch--governments will start to issue them on blockchains because they will continue failing in trying to create own blockchain. This is the middle ground for crypto. To host government issued money on decentralized blockchains.

You keep talking about why this is good for us but you are missing the point, governments do not really care about what is best for their citizens, they care about what is the best for them and what kind of benefits they can obtain, and it is obvious that losing control of the money supply is not on their best interests, so this is a power they are never going to let go willingly, so what you are proposing has no possibility of happening whatsoever.

sunsilk

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It is the CBDCs that they've been rolling and it's not just particular to only one country but also in some other countries. They're just making it look like that they're in the adoption of crypto.

But, it's all about them having the control to this production of CBDC so that people would have keep their wealth to its value.

Quote from: Guessti on December 05, 2022, 10:30:56 PM

Defeats the real purpose of crypto and Bitcoin in general and then who trusts this auditor?

Exactly but even with that, the citizens that don't like bitcoin and crypto will have to trust them.

Topic: Governments will issue "stablecoins" on existing main stream blockchains (Read 191 times)