Stablecoins or CBDCs? - page 3. | Bitcointalksearch.org

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Quote from: BitcoinPanther on April 25, 2022, 04:23:21 PM

They will probably co-exist. Stablecoins are operating outside the bank system so they won't affect each other IMHO.

According to economists, it is stable coins on a par with other cryptocurrencies that pose a threat to the country's financial system, and accordingly, such a threat will be for CBDC, which are a new form of money on a par with cash and non-cash. It is for this reason that national regulators will try to regulate stablecoins in order to limit their impact on the financial system, while CBDC will be introduced into the cryptocurrency market.

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Quote from: MinMan on April 23, 2022, 01:54:10 AM

I do not think that the launch of central banks digital currency is going to affect stable coins negatively. I think that both of them can coexist, and moreover they are quite different in a way because stable coins are on the blockchain and being used mainly in the cryptocurrency market or community, whereas the central bank digital currency is more of like being used in the bank or issued by the central bank directly to the people.

So, the both of them are quite different a lot. There are always going to be people who would choose between the two, those who feel that CBDC is best for them would go for it, and people who don’t like it wouldn’t go for it, that’s just it.

They can coexist, but depending on how they will be used, it will be a fight between them as well. Stablecoins are getting their attention from being main "getting out of crypto" method in the exchanges, which means that if you want to sell your bitcoins but do not want the money in your bank account for now, you will turn that into USDT and keep it there in the exchange, then when you want to get in, you will use that to buy crypto.

This is mainly how people use it, there is also futures of course. The moment we start to see CBDC's taking over that, and start being the main thing in the exchanges then we are going to end up with a big fight and it will "either or" situation.

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Quote from: Abiky on April 08, 2022, 04:32:18 PM

If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency?

It is obvious, banks wants full control and honestly if I am the manager of the bank, I won't adopt any financial form that I don't have full authority.

Quote from: Abiky on April 08, 2022, 04:32:18 PM

Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

It is more hassle for banks to adopt anything that they can't control. Besides banks initially doesn't have access to the uncirculated USDT making them vulnerable to exploits from the one who created it.

Quote from: Abiky on April 08, 2022, 04:32:18 PM

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks.

They will probably co-exist. Stablecoins are operating outside the bank system so they won't affect each other IMHO.

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Quote from: Abiky on April 24, 2022, 08:30:54 PM

The same can be said about stablecoins. Consider how Tether keeps creating new coins out of thin air on a constant basis. If the stablecoin had a finite supply, the issuer wouldn't be doing this in the first place. No scarcity means inflation, giving the power to the creator of the coin instead of the "hodler". What makes you think a CBDC will be any different? While CBDCs will have a limitless supply, they will be better than existing stablecoins simply because they'll have the government's endorsement. People will use CBDC more than stablecoins because of this. Who knows if stablecoins die after CBDCs are launched for public use? Just my opinion

I don't believe any of them: Bitcoin, altcoins, stable coins, CBDCs will die. There are dead altcoins, dead CBDCs but Bitcoin will be there, some altcoins will be there like Ethereum, Dogecoin, some CBDCs will be there.

If any stable coin dies, it is because that stable coin is bad, terribly designed or too bad security. Its death will not be caused by any CBDC.

Quote from: Nivia1st on April 25, 2022, 04:46:03 AM

it all depends on the technology that CBDC uses. if they use blockchain even though it is ultimately centralized, this might threaten stablecoins. but if it doesn't use blockchain, cbdc is not a threat to stablecoins. there's not even anything to be afraid of about it. because cdbc will expand on different sides. so it can be said that stablecoins and cdbc will coexist without impacting each other.

Do you really think and believe that governments, central banks will be able and are readily to build up something better than Bitcoin or blockchain technology for the benefit of citizens? If they build up something, their reasons should be their benefits from governments to tax they can get from their citizens.

CBDCs short term can make hype on the market and create some panic among crypto enthusiasts but long term they don't have so much negative impacts. People will have multiple choices to choose for their transactions: Bitcoin, altcoins exclusively stablecoins, CBDCs and something new in future.

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Quote from: Abiky on April 08, 2022, 04:32:18 PM

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks.

it all depends on the technology that CBDC uses. if they use blockchain even though it is ultimately centralized, this might threaten stablecoins. but if it doesn't use blockchain, cbdc is not a threat to stablecoins. there's not even anything to be afraid of about it. because cdbc will expand on different sides. so it can be said that stablecoins and cdbc will coexist without impacting each other.

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Quote from: tbct_mt2 on April 20, 2022, 09:39:50 PM

At least CBDCs won't be killed by governments but the bad thing is total supply of CBDC is unlimited. Governments can mint infinite total supply and I believe they will feel more easily to mint new supply batch in CBDC than print new supply batch in fiat currency. Minting CBDC from thin air is easier than printing new fiat currency.

The same can be said about stablecoins. Consider how Tether keeps creating new coins out of thin air on a constant basis. If the stablecoin had a finite supply, the issuer wouldn't be doing this in the first place. No scarcity means inflation, giving the power to the creator of the coin instead of the "hodler". What makes you think a CBDC will be any different? While CBDCs will have a limitless supply, they will be better than existing stablecoins simply because they'll have the government's endorsement. People will use CBDC more than stablecoins because of this. Who knows if stablecoins die after CBDCs are launched for public use? Just my opinion

MinMan

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I do not think that the launch of central banks digital currency is going to affect stable coins negatively. I think that both of them can coexist, and moreover they are quite different in a way because stable coins are on the blockchain and being used mainly in the cryptocurrency market or community, whereas the central bank digital currency is more of like being used in the bank or issued by the central bank directly to the people.

So, the both of them are quite different a lot. There are always going to be people who would choose between the two, those who feel that CBDC is best for them would go for it, and people who don’t like it wouldn’t go for it, that’s just it.

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Quote from: wxa7115 on April 21, 2022, 12:20:50 PM

I think it is pretty much a given that once we see more CBDCs been released and governments push for their adoption that we will see an open war against cryptocurrencies in general as governments will argue their coins are better because they are under their control.

They are created and governed by governments so local governments will do their best support for their CBDCs.

The creation of CBDCs will be a hot trend because governments do see benefits from launching CBDCs with lower production, maintenance, distribution cost than traditional fiat currency.

Track the CBDC global adoption: https://cbdctracker.org/

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However while bitcoin can resist that assault due to its decentralized nature the same cannot be said about centralized stable coins which could easily fall victims of this push by the government and even disappear.

CBDCs and Bitcoin will not kill each other. They need to mutually grow and play its role as motivation for the opposite to improve, get matured more and they will exist together in our society.

Governments won't be able to eliminate Bitcoin completely and Bitcoin won't be able to replace fiat currency or CBDCs completely if on Earth there will still be laws.

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Quote from: GreatArkansas on April 20, 2022, 09:46:59 PM

I am afraid that government will start to attack these stablecoins or even non-stablecoins cryptocurrencies just to promote their CBDC. But it is already proven over time, especially Bitcoin, that it is more likely the power decentralization.
Stablecoins is much better for me especially now there are lot of stablecoins are popping beside USDT which is more transparent and decentralize.

I think it is pretty much a given that once we see more CBDCs been released and governments push for their adoption that we will see an open war against cryptocurrencies in general as governments will argue their coins are better because they are under their control.

However while bitcoin can resist that assault due to its decentralized nature the same cannot be said about centralized stable coins which could easily fall victims of this push by the government and even disappear.

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IMO, I think it depends on the country's regulatory requirements if a particular country has already operated a CBDC I think that's very hard for both CBDC and Stablecoin to co-exist because both of them have the same purpose so I guess it adds more scrutiny on Stablecoin side to provide any proof or legality that a particular Stablecoin has truly back with and asset that have a stable value like Gold or US dollar. so CBDC can give a problem on Stablecoin in the future.

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Quote from: fullhdpixel on April 21, 2022, 03:40:59 AM

We need stable coins, especially for the fact that they are the only ones that you can trade on cryptocurrency exchanges. Government CBDC cannot be traded on cryptocurrency exchanges, you do not get to see them anywhere there. ...

It is still too early to say that CBDC will never be traded on crypto exchanges, since we do not yet see a fully functioning CBDC. But I can assume that they will definitely be listed on exchanges and at the same time will be popular with traders and investors.

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Quote from: GreatArkansas on April 20, 2022, 09:46:59 PM

I am afraid that government will start to attack these stablecoins or even non-stablecoins cryptocurrencies just to promote their CBDC. But it is already proven over time, especially Bitcoin, that it is more likely the power decentralization.
Stablecoins is much better for me especially now there are lot of stablecoins are popping beside USDT which is more transparent and decentralize.

We need stable coins, especially for the fact that they are the only ones that you can trade on cryptocurrency exchanges. Government CBDC cannot be traded on cryptocurrency exchanges, you do not get to see them anywhere there. So that is why stable coins are very important for us, because they make trading easy and you wouldn’t have to be withdrawing money to Fiat, you just easily convert it to stable coin and you are done.

And of course we all know that the government would try to kick against other cryptocurrencies, but this wouldn’t be in every country, because I know for sure that there are governments who are in support of cryptocurrency. But even if they do try, we know for sure that cryptocurrencies that are truly decentralized wouldn’t be affected. Only the centralized ones would be their main target and they would be easily to take them down.

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I am afraid that government will start to attack these stablecoins or even non-stablecoins cryptocurrencies just to promote their CBDC. But it is already proven over time, especially Bitcoin, that it is more likely the power decentralization.
Stablecoins is much better for me especially now there are lot of stablecoins are popping beside USDT which is more transparent and decentralize.

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Quote from: Abiky on April 15, 2022, 10:10:26 AM

CBDCs will have more credibility than stablecoins, simply because they're backed by the full faith and credit of the government.

At least CBDCs won't be killed by governments but the bad thing is total supply of CBDC is unlimited. Governments can mint infinite total supply and I believe they will feel more easily to mint new supply batch in CBDC than print new supply batch in fiat currency. Minting CBDC from thin air is easier than printing new fiat currency.

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I doubt centralized stablecoins will survive as people will prefer CBDCs instead. Only decentralized stablecoins will stand against CBDCs as they don't have any central operator (issuer) behind them. They will prove to be an excellent alternative for those looking to escape government surveillance. I'd focus more on traditional cryptocurrencies such as Bitcoin or Ethereum since they're not directly tied to Fiat. As long as decentralization wins, there should be nothing to worry about. Just my thoughts Grin

Governments will try to protect their CBDCs and to do so, they will do more regulations on centralized stable coins. Companies that provide centralized stable coins will cope with more governmental regulations but I think they will still survive.

Centralized stable coins are still better than CBDCs because you will have public ledgers with which you can trace transactions, top holders, etc. With CBDCs, I don't believe governments will give us similar public ledgers.

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Quote from: mindrust on April 17, 2022, 05:20:02 AM

Both suck but somehow I would prefer CBDC's to Tether because tether is a shady token without and legal ground. In the end neither of those entities are going to back their tokens with any real assets. Bitfinex is already known for printing USDT out of thin air and the CB's will not be any different in this matter. The difference is, Bitfinex has no right to print currency legally. The central banks do.

So even though the inflation will still hurt the CBDC's and eat away your savings, it is still better than losing everything overnight.

People will trust CBDCs more than any ordinary stablecoin simply because they're backed by the full faith and credit of the government. I never liked Tether's shady practices as it manipulates the market for its own benefit. CBDCs would be a much better option, even though they will still be subject to the negative effects of inflation. The inception of CBDCs would mean the end of paper money for good. Everything else will be most likely the same as it is right now.

With increasing pressure from governments and central banks against crypto/Blockchain tech, stablecoins might cease to exist in the long term. Ultimately, what matters is decentralization. As long as decentralized cryptocurrencies exist, nothing else matters. Just my opinion

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in this case maybe i won't be in both (long term) but for temporary trading like when the crush market is like now of course i will be on stablecoin to minimize margin when i have a loss but that's about it. I'm not really interested in them for now. Because there are indeed some coins in alt that are more worthy when compared to them for investment

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Stablecoins are not in the control of government but cbdc is, we all know government are not very friendly with what they don't have a total control of. On the other hand, I think cbdc will be quickly adopted and be successful over stablecoins, why, it is government approved unlike Stablecoins, most organisations, wealthy individuals and even none wealthy ones will prefer using cbdc than Stablecoins because it is official and government approved.
Same reason why crypto adoption is stalling, most people are more comfortable with anything 'governments approved'.

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Quote from: Abiky on April 08, 2022, 04:32:18 PM

... If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency? Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

I'm not sure if I'm thinking it right, but personally, the current stablecoins I've seen are focusing on fiat, specifically USD. The emergence of CBDC is almost accepted with many other fiat currencies. We have not only USD but many other currencies, so if the government does not accept it, the money flows into the market. Given that this will only have limited adoption, I am optimistic the field can reach new heights in the economy.

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Quote from: Abiky on April 08, 2022, 04:32:18 PM

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks.

Both suck but somehow I would prefer CBDC's to Tether because tether is a shady token without and legal ground. In the end neither of those entities are going to back their tokens with any real assets. Bitfinex is already known for printing USDT out of thin air and the CB's will not be any different in this matter. The difference is, Bitfinex has no right to print currency legally. The central banks do.

So even though the inflation will still hurt the CBDC's and eat away your savings, it is still better than losing everything overnight.

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Quote from: SirLancelot on April 16, 2022, 04:39:10 PM

Quote from: tvplus006 on April 15, 2022, 02:11:06 PM

Stablecoins, as well as other cryptocurrencies, are subject to price manipulation. This is clearly noticeable with the recent fuss over the Waves USDN stablecoin, which has lost 40% of its value in price. The price of the GBR fell by about the same amount in 1992, and accordingly, if this happens again now, then the cost of CBDC will accordingly fall by the same percentage. So nothing is perfect as long as the possibility of manipulation remains.

CBDC value cannot be manipulated, saying this is just like you saying that forex can he manipulated when that’s not the case. The cryptocurrency market can he be manipulated and that’s because of how they are decentralized and totally out of the control of the government so the community is what controls it, when people are investing more money in it, the value will be increasing. In the case of the CBDC it is pegged with fiat so it is only the government that can decide the value, they can either inflate or deflate it if whenever they want.

I previously gave an example of a real fact when there was manipulation of the price of the pound sterling. And this manipulation of the fiat price is carried out by governments, unlike the cryptocurrency market, where price manipulation is carried out by large capital. It is the government that indirectly influences the discount rate and the issue, changing the value of fiat money. And the market in this case is the international financial system. In this case, the cost of CBDC will also change, since it is directly related to fiat.

Topic: Stablecoins or CBDCs? - page 3. (Read 867 times)