Topic: Is Bitcoin threatened by digital dollars? (Read 265 times)

I think bitcoin is not a threat from digital dollars, many people think that bitcoin is a system that can threaten and damage finances like digital money, even though the two are different things and nothing to be afraid of, both can complement each other in many ways, for example if we want to send money to other countries then we need more bitcoins than digital dollars.

it is clear and true that these are two very different things, because some are controlled and some are not.
The FED seems to have had the ambition for a long time to be able to work on digital dollars to materialize with the goal of being more efficient and controllable, but whether there are other intentions is of course difficult to predict and there will always be speculation.
but once again the program that is carried out clearly will not affect anything on the existence of Bitcoin and is completely irrelevant.

So far, it has been widely heard that America, especially the FED wants to issue digital dollars to be more efficient and reach a wider range than using conventional dollars, but will that affect bitcoin?
I don't think so, because after all bitcoin position has been strong enough as an investment asset and so far people are more inclined to see bitcoin as the right alternative as a digital currency as well as an investment asset, besides that if we review many issues in the past related to digital money (CBDC),so it's not just America that has planned it, China, India, Indonesia and even several other developed and developing countries have also planned it in advance but in fact until now we haven't found the digital currency of these countries are realized.

They are not slow, simply because they are not in a hurry, they need to do their research and due diligence before launching their own CBDC. As you can see, many other CBDCs have been created but failed miserably, and they probably don't want to make the same mistake. Although many versions of CBDC USD have been created, all are still pegged 1:1 by USD, meaning USD still dominates the world currency market. But once the digital dollar is created, it will never be able to compete with bitcoin, because they are completely different and cannot be compared or competed.

The CBDC does its own thing, Bitcoin does its own thing, and no competition whatsoever here imo. It only ever existed in the first place because the Digital Dollar runs on the blockchain I think, in the first place if Bitcoin and fiat have no competition, I don't think CBDC would have one as well since it's basically fiat. CBDC can simply be called the transition from Fiat to Digital instead, it was an idea that was probably solidified when the pandemic happened and online payments were rampant and blockchain was simply used as the medium for it.

You took blindly what the CBDC promises and what the media tells you. You also undermine what is cryptocurrency all about, specifically about what Bitcoin could offer.

CBDC is an empty threat to the cryptocurrency ecosystem. It has a wholly different core idea, there is no way that bitcoin could be threatened by such a cheeky idea of CBDC. What will hinder bitcoin is strict and forceful regulations that govern cryptocurrency usage, say a country banning it lawfully, then surely bitcoin has no chance. A mere financial technological progress, CBDC, is not in line with the reason that bitcoin exists. So, it is on a different level.

Bitcoin and digital dollar of course are 2 different things, dollars that are fully controlled by the central bank of course have a stable value, although nowadays it is easier to use bitcoin for transactions but can never disrupt the consistency of digital dollars.

CBDC or DD is a representation of fiat currency that is tokenized I don't think it will affect Bitcoin one bit, basically now everyone thinks that bitcoin is an instrument or alternative investment and digital dollars don't have that, because it's only fiat currency digitized, even though bitcoin aims to replace fiat, the public view makes bitcoin an alternative investment.
Looking at it from the bright side is when all Americans and the world are accustomed to using blockchain technology maybe which will make it easier to access bitcoin to the public.
What will be affected here is in my opinion stablecoins such as USDT, USDC and other stable coins, maybe people will switch from using stblecoins to digital dollars or other CBDCs issued by the government.

Digital dollars are the same as using USDT at this time, it's just that USDT was developed by private parties or private companies. The US government did not come up with anything new. But if the government also issues digital money, of course this becomes a problem if they still use physical money. Because each country has a limit on the amount of currency that can be printed in a year.

For example, if a country can print $10 billion in physical money a year, and they create $10 billion in digital money, then the amount of currency printed is $20 billion. Of course this exceeds the commodity limit, because every country can print money must be supported by commodities. However, the impact of this problem also affects other countries that use the USD exchange rate, because the dollar is used as the world's currency.

Any of these things like CBDCs and other products by the central banks the governments are all centralized and these are not even cryptocurrencies and these CBDCs cannot be used like bitcoin or other cryptocurrencies. People use bitcoin because bitcoin is decentralized and any government cannot manipulate this to the organization also there won't be any their part element on the transaction while you cannot have this when you are using CBDCs so the CBDCs cannot threaten bitcoin.

Not at all. As a matter of fact, Bitcoin's demand would probably increase if a CBDC is implemented in lieu of cash. So a digital dollar would actually reinforce Bitcoin. It might actually push certain people to finally embrace it.

Cold cash will eventually perish. It wouldn't be abrupt, though. It would be gradual. But it has to. The privacy that cold cash provides is probably one of the main reasons why a digital dollar is preferred by the government. It is difficult to monitor transactions involving bills. Worse, government authorities cannot freeze transactions that are illegal. They cannot detect and cancel a transaction from afar. But all this would be addressed with a CBDC.

And this new version of money is also the very reason why people would finally be led to Bitcoin.

The US is dozens of steps behind on the Digital Dollar initiative, I think we now have many versions of the CBDC USD issued by private institutions even established outside the US. In fact, since the beginning of the existence of crypto-based stable coins, bitcoin is still a priority choice for better privacy purposes.

I dont think bitcoin is threatened by digital dollars or other CBDCs in my opinion it can bring more people who curious to crypto. maybe the right term is US dollar is threatened by bitcoin that is why government created CBDCs so they can control more about their dollar

Well, bitcoin is not threatened by digital dollar but maybe this digital dollar may be threatened by bitcoin in the future especially if bitcoin’s global adoption will become more inevitable as bitcoin users have been increasing rampantly more than we realized. And besides, bitcoin is used for decentralization which means its siding the people unlike digital dollar will still be centralized and will be controlled by government and other entities.

Bitcoin is actually a digital currency but if you mean digital dollars then both of them have some differences and you already explained it. With that said, Bitcoin will be unaffected by the digital dollars. Those who like decentralization will go for Bitcoins but those who are fine with centralization then they will go with digital dollar.

There are some who will choose both. They will only treat their Bitcoin as an invest asset for the long term while they will use their digital dollar as a currency for purchasing or for sending money to their love ones. Now that we know their differences, we Bitcoiners shouldn't worry but let's just continue the business that we already started.

You know we have always wondered how mass adoption and acceptance of bitcoin will happen, maybe on a twist, this is one of the ways that we may achieve it by the government's thinking that their digital dollars or whatever CBDC that they are able to create will be able to overthrown bitcoin and the importance it has to us. for those who do not know about bitcoins, the introduction of CBDC by the government will facilitate and help people know about bitcoin better because there will always be comparison made between the CBDC's that are controlled by the government and bitcoins.

Yeah, and it is not limited to decentralization but it cannot be an asset as well. Why we are preferring bitcoin compared to gold or paypal; those same reasons will applicable against all government issuing digitalized money. As of now, 90% of people have been adapting bitcoin for the reason of its investment characteristics which is obviously missing with those digital money. So, nothing could stop bitcoin as of now.

When they start hearing about it, I am sure they will hear about bitcoin as well. In my opinion, government's digital money will help bitcoin to reach more people as government will try to develop basic infrastructures needed for their digital money and the same are enough for bitcoin to be adapted as well.

It is undeniably an intriguing issue to ponder, and one that has been discussed for some time. I believe it is essential to keep in mind that Bitcoin and a digital currency are two very different things. Bitcoin is a decentralized cryptocurrency that functions on a blockchain, while a digital dollar would be a digital counterpart of the US dollar managed and regulated by the Federal Reserve.

Nevertheless, the creation of a digital dollar might have an effect on the acceptance and expansion of Bitcoin in the United States. However, it is difficult to determine for certain without knowing how the digital currency would operate and what restrictions would be in place.

Consider that many individuals are drawn to Bitcoin due to its decentralized nature and its operation outside of conventional financial structures. Consequently, if the digital currency is tightly regulated and controlled by the government, it may not appeal to these folks as much.

On the other side, a digital dollar may make it simpler for consumers to access and utilize digital currencies, which could eventually result in greater acceptance of Bitcoin and other cryptocurrencies. In my opinion, it is still too soon to tell how the introduction of a digital dollar might affect the growth of Bitcoin in the United States. Nonetheless, I anticipate that the benefits will far outweigh the drawbacks.

The digital dollar is not so threatening to Bitcoin, after all we see that Digital Dollar and Bitcoin are not comparable, these two elements have different properties, the CBDC digital Dollar itself is inflationary and Bitcoin is Deflationary, the process of operating these two related elements is also different, so Dollar Digital is not a direct competitor to Bitcoin.
Bitcoin is a decentralized currency, and runs completely on a decentralized blockchain, so there's nothing to worry about.

This makes more sense, not bitcoin being threatened by digital dollars, but digital dollars being threatened by bitcoin. I think it's precisely with the launch of the digital dollar that the government saw something that needed to be modernized, and bitcoin has had that for a long time, even more than a decade. And also the digital dollar is likely to emulate the workings of what bitcoin has been introduced since it was first introduced.
There is no reason why bitcoin should be afraid of being threatened by the existence of digital dollars, digital dollars should find a way so that they can exist in the midst of bitcoin's existence.

To tell you honestly, I don't see any reason for bitcoin to be threatened by the digital dollar... I can still believe that digital dollar is threatened by Bitcoin because it cannot be regulated by any country's government around the world.

That's why I can't count the people who adopted the concept of bitcoin because maybe others saw that they couldn't stop it so they joined it, that's how simple it is in my understanding.

CBDC was not only introduced in America, even in many countries this project has been tested for its launch. CBDC is a government product, meaning it still has the same relationship and rules, so there are not much bigger advantages offered by CBDC and for the case of bitcoin travel threats, I don't think it has a big impact and doesn't have a relationship that could threaten the future growth of bitcoin.

Nothing can threaten the journey of bitcoin, because this asset has a much better bargaining value compared to fiat currencies and CBDC, decentralization offers complete freedom for holders, so that we can regulate ourselves regarding deplation rates. Setting what is meant, you can still hold back when a decline occurs and wait for the recovery process to make a profit, another advantage of bitcoin is that it can retain value that fiat does not have.

That's why bitcoin is growing until now, bitcoin is also a speculative asset that has the potential to go up or down, this will play a role in the supply and demand system.

If you read carefully they can't even shill their CBDC without making the public aware of decentralized currency merits and niches,  lets take a look

safeguard the privacy of sensitive data
meaning someone else will decide what of your data are "sensitive" obviosly they will need all your data to decide it

minimize risks of illicit financial transactions."
, and support the effectiveness of embargoes."
i.e. it will be totally trackeable, reversible, easily censored

help preserve U.S. global financial leadership
protect against cyberbullyng and operstional risks
meaning that it will be another way to excert control over economic players

In any case it may be a threat to USD pegged stablecoins, but even this is a long shot

Bitcoin in my opinion cannot be a substitute for digital dollar or vice versa. No matter what the government think digital dollar with digital dollar
 because it is controlled by them bitcoin will be Bitcoin because it is decentralized. As a matter of fact, digital dollar Wii lead to to more inflation in the economy.

It will do this, it will do that and it will be more than that. Oh come on, do we really believe this thing and any planning behind it? I’m sure that this is just another hoax from Government which will take lot of time to implement. Or it may not get implemented at all. These kinda projects being discussed many times now but they never come to existence since government also fear that whether it will work or not ? Whether it is worth investing in its infra and future plans. There are so many questions in this one so definitely it’s not bitcoin that is threaten but it is digits dollar itself. Lolz.

The digital dollar isn't a threat to Bitcoin. The US government and the Federal Reserve are the real threat for Bitcoin.
They portray the digital dollar as the best thing since bread, but in reality all they want is just more control and less privacy for the people.
The statement that the digital dollar will help in "fighting cyberbullying" is ridiculous. What do they mean by "cyberbullying"?
Supporting the effectiveness of embargoes? What does that even mean? Perhaps the countries, that are currently being blocked by embargoes would just dump the US dollar entirely and pick another currency for their transactions. This looks like a great boost in the effectiveness of the embargoes.
This seems like a bunch of nonsense created by a bunch of incompetent government minions.

Not at all. Bitcoin will remain as always, a deflationary decentralized form of digital currency unlike that centralized version of digital currency with an unlimited supply. Both can co-exist anyways, so there is nothing to worry about. And besides, it is not just the United States that is planning to launch a CBDC. There are a lot of countries that will be minting their own centralized CBDCs sooner than later. I expect most countries around the world will have their own CBDCs in the next 2 decades. 

CBDC wouldn't cause any harm to Bitcoin, but government's rules would harm Bitcoin. So it will depends on the government's rules, will all the countries create a rules to ban Bitcoin or anyone must use their wallet to hold Bitcoin? it surely will create a panic since many articles about no longer privacy in Bitcoin or Bitcoin is the next tulip 2.0 etc. I know we can still trade Bitcoin using decentralized, but if the banks can know the money is come from Bitcoin, there's will a problem in the future.

Yes, in my opinion, the digital dollar threatens Bitcoin..... 

The digital dollar is essentially an element of a digital concentration camp.  The people of the United States have very ancient democratic traditions.  However, the mentality of the people changes over time.  People can get used to the total control and dominance of authoritarian centralized systems. 

This, in my opinion, can damage such a decentralized asset as Bitcoin.  At the same time, the Fed can start a real war against the first cryptocurrency. 

Bitcoin can be declared the main enemy of the environment and banned from its use in the United States.

Let's put it this way: digital FIAT is threatened by Bitcoin. They should be afraid and they ARE afraid. Digital money is the future, of course it is, but with a complete migration to digital FIAT, Bitcoin will take the role of cash as we know it now. Digital FIAT means total control: you won't be anonymous anymore. Every transaction could be tracked/reversed/stopped etc. Everything will stay the same: inflation, banks in full control, debt, government supervising the process etc.. additionally, most currencies are digital already - that's just a number in your bank account, not real money backed by something.

A CBDC, or better called in full, central bank digital currency will have no special effect on bitcoin, Bitcoin is a digital currency that is completely decentralized, and also runs on a decentralized blockchain, majority of those who are already into cryptocurrency understand this and know that a CBDC which is controlled by the government can not be compared to the decentralization, as well as freedom that bitcoin and cryptocurrencies provide.

So i personally see no way a digital dollar created by the federal government will ever be a threat to bitcoin's existence.

I think the quote above summarizes everything. If dollar has never threated Bitcoin during all these 14 years of existence, why would an identical twin do?

There isn't anything special about digital dollar, because like the regulators said, it's the same thing of the currently dollar currency!

Digital dollars (or digital Chinese yuan or any other digital currency) are worse than paper money and worse than banks too.

Governments have failed to ban cryptocurrencies that are decentralized and not controlled. Therefore, governments seek to issue digital currencies against cryptocurrencies because they are completely opposite to being centralized and completely under government control.

Governments, especially the government of the United States, want to maintain central control over the global monetary system and impose bans on all financial transactions that they do not wish to occur, whether to individuals, organizations, or even countries hostile to the United States.

A centralized digital dollar would enable the United States to do all of these things quite easily.

The digital dollar and Bitcoin are not comparable, for the reason already mentioned in this thread, OP.
People who buy Bitcoin usually do it for two main reasons, in my opinion: decentralization and speculation.

Those two things or characteristics, you will not find it in the digital dollar. Besides, we all know that the personal data linked to your purchases while using the digital dollar wallet will be a feast to the big brother and the companies that profit off our personal information.

Dollar is already digital, doesnt take too much consideration beyond that.   The vast majority of currency moved around, that exists in total will never come close to being physical.   Many dollars are just shifted from one government balance sheet to another, they barely exist in the real economy.  Its part of what makes QE the castle in the sky it has been for over a decade now, the impossible dream made real.

BTC is entirely different from how the dollar is operated, past present and future.   They wont ever change it to properly reflect an equal capitalist standard, its not going to be a contender for anything transformative.   Its not on their agenda and I dont see how it will occur organically, its a top down system for 'the greater good'.   We had people attempt to construct national digital currency, didnt work as it purely a top down construct so there is little point in wondering about digital anything as digital is not new in that way.  We are digital right now, many countries are.
 The speculation is just on when does Dollar dominance, existing since Bretton woods post war and much eroded does in fact fail, when is it too much and can we get any sign beforehand to get out of the way of the damage.  

The CBDC digital dollar does not appear to be a direct competitor to bitcoin.

BTC is deflationary, while the CBDC dollar is inflationary. This places them in different asset categories, where they do not necessarily need to compete as rivals. The CBDC dollar is likely to be rolled out for user by demographics with a current bank account. While one of bitcoin's largest user demographics is known to be an unbanked demographic which could comprise of billions of end users worldwide. The lack of overlap in design, mission statement and user base could allow a CBDC dollar and BTC to exist independently of each other. They don't need to compete for the same markets or the userbase.

Thus far we haven't seen much fanfare for CBDCs. If their biggest advantage is mass adoption in terms of them being backed by traditional financial institutions. There hasn't been much effort made to rollout a marketing campaign in an effort to leverage that current mass adoption. In a sense, CBDCs are flying a little under the radar in terms of most consumers probably not having heard of them.

No.
The End.

Oh, and yes, you already answered your question. The DD is indeed not decentralized. Nor is it cencorship-resistant, nor boderderless, nor will it be immutable.
It's like the fiat dollar combined with Bitcoin - except that you only take their disadvantages, despite the fact you can do instant transactions.

What a bunch of BS. - If it indeed is safeguarded against cyberbullying it would mean there is a centralized instance with FULL access to any funds and transactions at any point in time - the total surveillance currency. Geroge Orwell's darkest dream.
Actually everything stated in that article points towards a 100%-controlled currency. Which is the most anti-freedom-anti-American-spritit thing I could think of.

I saw this news and it got me thinking if the growth of Bitcoin in the United States is gonna be hindered since the government plans on introducing the digital dollar. Though I've no idea how it's gonna work.

Quote from:  copied from https://www.msn.com/en-us/money/markets/president-biden-gives-crypto-a-bitter-taste-of-what-lies-ahead/ar-AA1207rp
The White House is urging the Federal Reserve to explore the launch of a digital dollar, or Central Bank Digital Currency, which would be controlled by the Fed. This identical digital twin of the dollar would be entirely regulated.

A U.S. digital dollar "facilitates faster cross-border transactions and is environmentally endurable," the Biden government explained. "It could facilitate financial inclusion and equity by enabling access for a broad set of consumers."

It could also "protect against cyberbullying and operational risks, safeguard the privacy of sensitive data, and minimize risks of illicit financial transactions."

In addition, the White House believes a U.S. digital dollar "could also help preserve U.S. global financial leadership, and support the effectiveness of embargoes."


I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.

But what do you guess?