Topic: Impact of a US Digital Dollar on Crypto? (Read 310 times)

I see CBDC very worrying what comes to "traditional" cryptocurrencies. Governments are going to regulate cyrptos to the death and take market share easily.

They don't have to say it, but governments can use for example "airdrop" to make their CBDCs the most held crypto in the country/world with a push of the button... just create "wallets" for everyone based on for example social security numbers, etc., and airdropping a few crypto dollars to every citizen.

In a such scenario, what are the ways for Bitcoin and alts to compete? ...and ultimately there are no rooms to compete because of regulations, you need to be a bank to be allowed to exchange etc cryptos. We're not yet there, but dreams of wide adpotion will eventually turn against the whole crypto community. Let's have fun as long as it's possible, and create cryptos that are REALLY decentralized and impossible to regulate. That's the only way to survive in the long run. Trust me.

Government-issued digital currencies are inevitable, as banks don't want to lose a piece of the pie. When launched, I think governments will become more aggressive against crypto in order to force people to use their currency. Even in a democratic country like the US, it's possible the government will turn against crypto to help boost the adoption of the Digital Dollar. Crypto will still remain as an alternative to Fiat, but most people will prefer CBDCs because of convenience.

How everything will turn out to be in the future is certainly a mystery to all of us. As long as decentralization prevails, nothing else matters. Just my opinion

There will be no practical difference between dollar CBDC and the already existing Usdt in the crypto market. Both after all are centralized and will only represent the exact value of the paper dollar since the both are tied to the exact fiat value of the corresponding digital asset.

The only concern for digital dollar will be the stricter regulation when comparing it to Usdt. But there will be no influence whatsoever of this CBDC dollar on crypto since it's not decentralized

Without a doubt we are going to see the day in which most countries will have their own digital currency, but it does not really matter, as long as they keep creating their currencies under the same economic principles then we are going to keep seeing huge inflation and economic crises that only get worse and worse, so even if governments increase the oppression against bitcoin, it will still remain as an alternative to their fiat system, as there will always be people like us that can see beyond their lies and if possible will avoid to use those digital currencies as much as we can.

There's been a lot of talks about the Federal Reserve's plans to develop a Digital Dollar in order to phase out paper money for good. The US is aware that China has launched a CBDC of its own, leading it to act fast in order to maintain its grasp on the global economy. I wonder what would the impact of a Digital Dollar be on crypto itself? Knowing that people prefer convenience on top of security/reliability/decentralization, it's likely the majority will "ditch" crypto in favor of a government-backed digital currency.

By the time all countries have their own digital currencies, it's likely governments will become more oppressive against crypto/Blockchain tech. We're still a few years away from seeing a Digital Dollar in circulation, so there should be nothing to worry about at least in the time being.

Thoughts?

like CBDC, digital dollars will not affect the crypto market. I'm even sure that it's not a crypto coin and can't be called a stablecoin either. the technology used is clearly centralized, and that's why digital dollars are not crypto. something that is not crypto will not affect the market. People are already aware of it all so even if it were to be launched today, the crypto market would not react.

I fully see its impact on the cryptocurrency market as well as other financial markets. As far as I know, it is like a national bank's acceptance of crypto market products. Both the US and China understand that it affects the currency itself and the development plan of the country. So let's wait and see what happens with CBDC products.

I'm not expecting a US CBDC to offer advantages over crypto. They won't offer lower transaction fees, or a private key based system allowing sole ownership and control over funds to end users. They will not adopt a hard deflationary model, which could qualify their CBDC as an inflation protected asset. They won't implement a gold standard whereby their CBDC can be exchanged for precious metals. There won't be high interest earned by staking CBDCs as there is with crypto.

The approach regulators and the state makes to CBDC rules out every avenue which could allow them to be competitive in global markets. In an era where social credit and state surveillance are concerns, CBDC could be viewed as extensions of these programs, which I think most would prefer to avoid.

CBDC will have a difficult time to overcome the many obstacles and skepticism most will have towards it.

If it is pegged to the dollar, CBDC might be used as a stablecoin in countries like venezuela, turkey and argentina which could help residents to avoid inflation. That might be one area it could have real world application. Although given the preference for regional lockouts where video games made in japan can't be played in the USA, as an industry standard, it is possible that may not be an option outside of forex which already exists.

like CBDC, digital dollars will not affect the crypto market. I'm even sure that it's not a crypto coin and can't be called a stablecoin either. the technology used is clearly centralized, and that's why digital dollars are not crypto. something that is not crypto will not affect the market. People are already aware of it all so even if it were to be launched today, the crypto market would not react.

There's been a lot of talks about the Federal Reserve's plans to develop a Digital Dollar in order to phase out paper money for good. The US is aware that China has launched a CBDC of its own, leading it to act fast in order to maintain its grasp on the global economy. I wonder what would the impact of a Digital Dollar be on crypto itself? Knowing that people prefer convenience on top of security/reliability/decentralization, it's likely the majority will "ditch" crypto in favor of a government-backed digital currency.

I don't think it's going to make any difference at all tbh, maybe set up global payments or something to make it easier and some other niche qol improvements, but that's about it. Its core idea isn't really any different from fiat, so it shouldn't be a threat to crypto. Heck, it even actually improves the tracing of what and where funds go (that uses it), so basically the government is improving it's ways to track how our money is spent and where it actually goes.

It's just fiat put into a computer, not much is gonna changer.

CBDC is no different from fiat money, all provided and controlled by the government, it will even be more strictly regulated than the current way of circulating fiat.
We love cryptocurrencies not because they are convenient but because of their decentralization. I don't think people will give up crypto because of CBDC.
Crypto have opened up a convenient digital world, certainly countries are working to come up with their own CBDCs for each country.
Until they come up with regulations to crackdown on crypto to force people to accept CBDC, but it is not possible to completely ban cryptocurrencies.

They won't offer lower transaction fees

CBDC will have a difficult time to overcome the many obstacles and skepticism most will have towards it.

Knowing that people prefer convenience on top of security/reliability/decentralization