Even Javier Milei didn't abolish the central bank after he became president. I think this issue is being blown out of proportion. Central banks are the center of every economy. There would be no country without a central bank.
Central banks of the world may not be perfect but they have a role they play. No country would be without it's fiat currency, and it's the central banks that provide that.
Aside providing fiat for the country, the central bank also has major roles it plays like overseeing the monetary policy of the country, setting interest rates, and managing the Federal Reserve to name a few.
Central banks are too important to the system of a country for it to be abolished.
What we can do is make sure they're more efficient and not try to eradicate them entirely. We live in a centralized world, and a centralized world is run by centralized institutions, that's why I believe fiat and central banks will always be a thing.
Topic: The collapse of central banks...Inevitable? - page 5. (Read 1594 times)
It is not possible to run the country without fiat, so notes are being issued as needed to continue the growth of the economy. The deposit growth in the banking sector is quite good now. Although the extent of financial inclusion and banking sector in our country is very large, the demand for cash is not decreasing. It is a failure of the formal sector of the economy. People worldwide now do not know about the use of cards or plastic money transactions. For this, fiat money is quite useful here.
Currently most banks in the world are printing extra currency because of that. It is the same situation that almost everyone sees that the currency prices in the world are falling day by day. However, there are some countries whose currency depreciates less than others. Their country's currency is very strong.
You're right; these "elites," the old guard, love control and power from the money printer. Since they rule fiat currencies, why would they rebel? The system is rigged for corruption, and they won't want to give up its secrecy
Bitcoin and its movement are changing everything, man. Transparent and tough, it won't change. The goal is to reclaim power, not just technology. Definitely a lengthy road. Every time someone realises they can manage their digital money? A little earthquake rattles the system
You're right about CBDCs. Governments are likely adopting digital currencies. That could be the greatest Trojan horse. After getting used to digital money, people start to wonder who's in charge. That leads to actual decentralisation. Your voice, preaching about independence and not having Big Brother watch your finances, will change attitudes
Bitcoin and its movement are changing everything, man. Transparent and tough, it won't change. The goal is to reclaim power, not just technology. Definitely a lengthy road. Every time someone realises they can manage their digital money? A little earthquake rattles the system
You're right about CBDCs. Governments are likely adopting digital currencies. That could be the greatest Trojan horse. After getting used to digital money, people start to wonder who's in charge. That leads to actual decentralisation. Your voice, preaching about independence and not having Big Brother watch your finances, will change attitudes
People aren't seeing the big picture. They're only focused on making money with Bitcoin. Not to use it as an alternative to the corrupt Fiat money system backed by central banks and governments alike. The spot ETFs, taking down mixers, etc. tells us that governments already have an advantage over Bitcoin. It won't be long enough before they're able to control it. Especially by forcing people to comply with KYC just to buy/sell BTC.
With that leverage, governments and banks will only get stronger over time (not the other way around). The launch of CBDCs will mark the end of the privacy era, as they will allow governments to have a full scope over your financial life. It's likely they will outlaw crypto/Blockchain tech to prevent people from getting out of their system. The current financial crisis will only accelerate governments' efforts to reset the economy. The question is: Are we prepared for such an event?
The governments and it's paramount authorities can't afford to to overrule such order of watching the fiats which is under their control to crash while bitcoin that's non custodial and decentralized will be embraced by the same authoritative governments.
I don't even see that possible to happen. Even in the white paper of bitcoin, Satoshi Nakamoto clearly stated it that bitcoin will serve as alternative source for payments in a meantime in place of the fiats.
I don't even think if bitcoin would be so valuable as much as it's if finally the Fiats are eliminated from th central bank. What I know is that bitcoin has gained the values due to the challenges in a competitive economical developments such as the fiats and the AltCoins so, if there's no encounter on bitcoin as much as it's now, those valuable potentials of bitcoin will drop to incomparable and unreasonable.
Looking at Japan for example right now and how the Yen is crashing, we could say that no matter how bad it gets they will keep doing what they are doing and they will not change their view on this. I am not saying that it is going to be something crazy, obviously they won't take bitcoin or even their own coins and go with that, look at PetroDollar test that was done and you will see that it is not working that way and there is no way to get better or richer.I don't even see that possible to happen. Even in the white paper of bitcoin, Satoshi Nakamoto clearly stated it that bitcoin will serve as alternative source for payments in a meantime in place of the fiats.
I don't even think if bitcoin would be so valuable as much as it's if finally the Fiats are eliminated from th central bank. What I know is that bitcoin has gained the values due to the challenges in a competitive economical developments such as the fiats and the AltCoins so, if there's no encounter on bitcoin as much as it's now, those valuable potentials of bitcoin will drop to incomparable and unreasonable.
We just need to realize that we are going to end up with a problem if we just let central banks go berzerk and in most cases they do. Which is why I believe that we are not going to end up with anything better or good, we just need to make sure that we are going to end up with central banks doing whatever they want.
I would think that central banks won't collapse for so long until they are not an integral part or the main pillar of the elites' wealth anymore. In other words, the elites would need to shift their wealth into assets that are not affected by central bank collapses. I don't claim that I fully understand the financial system with all its different angles, but my assumption is that the whole banking sector is so deeply entangled with central banks that a collapse of central banks would mean a collapse of the entire financial sector, which mean a collapse of the entire system built on the financial sector, i.e. the world economy.
BTC is now a system outside the existing system. That makes it so interesting to own. Of course a collapse in the global economy would affect BTC because people would suffer from poverty and all the bad things that come with financial distress or let alone collapse. The urge to sell BTC to cover expenditures would certainly create selling pressure for BTC, too. Yet it could be the currency or wealth preservation tool that people agree upon globally. But it would be interesting to do some research as to how a spill over effect of a collapsing central bank system / economy could affect BTC after all.
BTC is now a system outside the existing system. That makes it so interesting to own. Of course a collapse in the global economy would affect BTC because people would suffer from poverty and all the bad things that come with financial distress or let alone collapse. The urge to sell BTC to cover expenditures would certainly create selling pressure for BTC, too. Yet it could be the currency or wealth preservation tool that people agree upon globally. But it would be interesting to do some research as to how a spill over effect of a collapsing central bank system / economy could affect BTC after all.
It's hard to imagine the "Elite" moving out of the existing banking system anytime soon. Especially those with a lot of influence in the government. Corruption and manipulation can be easily achieved on centralized Fiat money, than Bitcoin. The latter is transparent and open to anyone worldwide. You think corrupt politicians and the wealthy (the Elite) would like that? I think not.
Considering that central banks have too much power, don't expect them to disappear anytime soon. They will eventually reset the global economy via the launch of CBDCs. Just you wait and see. All I care about is freedom, privacy, and self-sovereignty. As long as people are able to obtain that with Bitcoin, nothing else matters.
Bitcoin and its movement are changing everything, man. Transparent and tough, it won't change. The goal is to reclaim power, not just technology. Definitely a lengthy road. Every time someone realises they can manage their digital money? A little earthquake rattles the system
You're right about CBDCs. Governments are likely adopting digital currencies. That could be the greatest Trojan horse. After getting used to digital money, people start to wonder who's in charge. That leads to actual decentralisation. Your voice, preaching about independence and not having Big Brother watch your finances, will change attitudes
The governments and it's paramount authorities can't afford to to overrule such order of watching the fiats which is under their control to crash while bitcoin that's non custodial and decentralized will be embraced by the same authoritative governments.
I don't even see that possible to happen. Even in the white paper of bitcoin, Satoshi Nakamoto clearly stated it that bitcoin will serve as alternative source for payments in a meantime in place of the fiats.
I don't even think if bitcoin would be so valuable as much as it's if finally the Fiats are eliminated from th central bank. What I know is that bitcoin has gained the values due to the challenges in a competitive economical developments such as the fiats and the AltCoins so, if there's no encounter on bitcoin as much as it's now, those valuable potentials of bitcoin will drop to incomparable and unreasonable.
I don't even see that possible to happen. Even in the white paper of bitcoin, Satoshi Nakamoto clearly stated it that bitcoin will serve as alternative source for payments in a meantime in place of the fiats.
I don't even think if bitcoin would be so valuable as much as it's if finally the Fiats are eliminated from th central bank. What I know is that bitcoin has gained the values due to the challenges in a competitive economical developments such as the fiats and the AltCoins so, if there's no encounter on bitcoin as much as it's now, those valuable potentials of bitcoin will drop to incomparable and unreasonable.
their collapse seems unlikely in the near term. Central banks play a crucial role in economic stability and have tools at their disposal to address various economic issues.
There are over 8 billion people in the world and 195 countries. Not everyone will lose trust and confidence in central banks no matter how bad it becomes. Not all governments as well would deteriorate even if it seems that way.
Quote
If hypothetically, trust in fiat currencies were to erode significantly, it could lead to increased interest to Bitcoin.
Like you said total domination of bitcoin is not gonna happen soon but as everyone slowly realizes the potential of bitcoin let us take advantage of it.
What about synergy? Many countries are already rolling out digital versions of their currencies. It looks like cash might take a back seat as everything moves online. I think this is our nearest future.
....
....
I guess the decentralization of the world's economy will remain a long and distant dream. Central banks will only get bigger and stronger over time. I fear a "global reset" is approaching with the launch of CBDCs. Who knows what the future of our society will be?
But I want to ask you what a decentralized economy would look like and how it would work in your imagination? Honestly, I can't imagine what a decentralized economy would look like and function without government. The world will not have any controls or regulations, everyone will be free to do what they want without fear of being fined or arrested...In my opinion, it is a chaotic world, not the freedom that many people expect.
Decentralization is necessary and effective in certain areas, but it is not a good thing if everything becomes decentralized and out of control.
I agree with you. Governments will find a way to adapt to new technologies rather than just standing aside. Control is necessary, but the real question is how it will be implemented. If we evolve to a point where sensible rules and restrictions actually grant us more freedom in how we use our money, then that would undoubtedly be a breakthrough for both the economy and society as a whole.
I don’t see how it is possible to have a country without fiat. There needs to be a currency that can be controlled by the government otherwise it cannot work. Inflation is going wild but I think it’ll just keep going and maybe they’ll find something to do so it’s better, however, I think that what could be worse is that more money will be printed and a cup of coffee will be $20.
....
....
I guess the decentralization of the world's economy will remain a long and distant dream. Central banks will only get bigger and stronger over time. I fear a "global reset" is approaching with the launch of CBDCs. Who knows what the future of our society will be?
But I want to ask you what a decentralized economy would look like and how it would work in your imagination? Honestly, I can't imagine what a decentralized economy would look like and function without government. The world will not have any controls or regulations, everyone will be free to do what they want without fear of being fined or arrested...In my opinion, it is a chaotic world, not the freedom that many people expect.
Decentralization is necessary and effective in certain areas, but it is not a good thing if everything becomes decentralized and out of control.
Man is a social being. People can exist in this gross physical world only if they unite and each does a certain job for the benefit of everyone. In order to exchange goods easily and quickly, money was invented, the form of which changed frequently until it became paper and electronic. All this has been combined into a single financial system, which is controlled by the government, in order to quickly and correctly distribute cash flows for the development of the economy and society as a whole. It is banks that are the instrument for regulating financial flows and have actually become part of the state as the highest form of social structure so far. Therefore, banks will exist as long as states and their governments exist. They may change their name and form, but the essence will still remain the same - regulation of the financial system. Those who assume that money in the state can be decentralized are deeply mistaken. Decentralization of money in the state is allowed, but only as an alternative and with a secondary role in relation to fiat.
In my opinion, there is only one possibility for central banks or fiat currencies to disappear: governments collapse, and if governments collapse, the world economy and society will be leaderless, our world will also collapse.
You're right, maybe things will change and be replaced, but the essence remains the same. Maybe in the future, banks or fiat will disappear, but it will certainly be replaced by a tool created by the government itself, not a decentralized asset like bitcoin. Bitcoin cannot and will never replace banks, and the decentralized economy will not last long, IMO.
I would think that central banks won't collapse for so long until they are not an integral part or the main pillar of the elites' wealth anymore. In other words, the elites would need to shift their wealth into assets that are not affected by central bank collapses. I don't claim that I fully understand the financial system with all its different angles, but my assumption is that the whole banking sector is so deeply entangled with central banks that a collapse of central banks would mean a collapse of the entire financial sector, which mean a collapse of the entire system built on the financial sector, i.e. the world economy.
BTC is now a system outside the existing system. That makes it so interesting to own. Of course a collapse in the global economy would affect BTC because people would suffer from poverty and all the bad things that come with financial distress or let alone collapse. The urge to sell BTC to cover expenditures would certainly create selling pressure for BTC, too. Yet it could be the currency or wealth preservation tool that people agree upon globally. But it would be interesting to do some research as to how a spill over effect of a collapsing central bank system / economy could affect BTC after all.
BTC is now a system outside the existing system. That makes it so interesting to own. Of course a collapse in the global economy would affect BTC because people would suffer from poverty and all the bad things that come with financial distress or let alone collapse. The urge to sell BTC to cover expenditures would certainly create selling pressure for BTC, too. Yet it could be the currency or wealth preservation tool that people agree upon globally. But it would be interesting to do some research as to how a spill over effect of a collapsing central bank system / economy could affect BTC after all.
It's hard to imagine the "Elite" moving out of the existing banking system anytime soon. Especially those with a lot of influence in the government. Corruption and manipulation can be easily achieved on centralized Fiat money, than Bitcoin. The latter is transparent and open to anyone worldwide. You think corrupt politicians and the wealthy (the Elite) would like that? I think not.
Considering that central banks have too much power, don't expect them to disappear anytime soon. They will eventually reset the global economy via the launch of CBDCs. Just you wait and see. All I care about is freedom, privacy, and self-sovereignty. As long as people are able to obtain that with Bitcoin, nothing else matters.
If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?
the economic downfall of a country will certainly have a significant impact on the central bank, because policies relating to fiat currency are related to this institution. but even so, a country's economic downfall will not eliminate this institution, because as long as a country has a currency they have a central bank that regulates this.
and in the worst case when the central bank is in a crisis phase, bitcoin will not become the world currency, because the government will not allow that to happen. maybe they will launch a new currency with a new system, because they don't want to lose control over their citizens.
Man is a social being. People can exist in this gross physical world only if they unite and each does a certain job for the benefit of everyone. In order to exchange goods easily and quickly, money was invented, the form of which changed frequently until it became paper and electronic. All this has been combined into a single financial system, which is controlled by the government, in order to quickly and correctly distribute cash flows for the development of the economy and society as a whole. It is banks that are the instrument for regulating financial flows and have actually become part of the state as the highest form of social structure so far. Therefore, banks will exist as long as states and their governments exist. They may change their name and form, but the essence will still remain the same - regulation of the financial system. Those who assume that money in the state can be decentralized are deeply mistaken. Decentralization of money in the state is allowed, but only as an alternative and with a secondary role in relation to fiat.
I also think that FIAT is very difficult to get rid of, considering that this is like a disease that has spread to the tip of the nail, and banking will not become extinct, for me the reason is quite simple, it's a profitable business so there are some people who will definitely adopt it again with a digitized or decentralized system but still has the nature of banking.
Maybe that can happen, but if you look at the development of banks today they are withdrawing their branch outlets and prefer agencies in mass to show affiliation and spread money more simply to people in remote areas, so the removal of their branch buildings that are being carried out and switching to a digitalization system, allows banking to compete again, and if you look at it, many banks are trying to adopt blockchain technology so that they are not disrupted by the massive development of bitcoin.
Maybe that can happen, but if you look at the development of banks today they are withdrawing their branch outlets and prefer agencies in mass to show affiliation and spread money more simply to people in remote areas, so the removal of their branch buildings that are being carried out and switching to a digitalization system, allows banking to compete again, and if you look at it, many banks are trying to adopt blockchain technology so that they are not disrupted by the massive development of bitcoin.
That will never happen. Banks' move away from physical branches and toward digitalization is just a way to adapt to the evolving technological age, not a sign that banking dominance is waning. Furthermore, the role of banks is considered the backbone of any country's economy, while many countries do not need bitcoin. So it would be naive to think that banks are trying to counteract the popularity of bitcoin.
Bitcoin is just a speculative asset, or peer-to-peer currency not recognized by governments, while banks and fiat currencies are considered the core of the world economy. Even bitcoin replacing fiat currency will never happen, let alone bitcoin competing with banks.
I know that it is not possible to be replaced easily if it is the system, but some elements may be depreciated and also disrupted by the digitalization of finance, if that does not happen there will certainly be others, considering that every century there will be a change in the financial system, it is impossible to last long with Fiat, but maybe we will last long with the banking culture.
Take note of this, if central banks will be abolished suddenly and as central banks are the one that is responsible for the financial of a country then expect that there will be chaos in that country there will be no order or what because the value of the fiat currency in that country will have no value anymore and people could take advantage of that, dont wish that central banks will collapse because if that happens then you will not like what might happen to the country, we cant do anything about the inflation because thats what is happening right now because of the goods keep on increasing we could only do is to find alternative work or job that could make as extra income, but what if centran banks abolished then there's no sense in having too much money as it will not be useful anymore, mind that, and I hope it will never happens.
This is almost impossible to do even though banks are the answer to the current economic chaos because banks do not act inclusively without orders from the government in power based on a general review meeting. The effect is that if a bank collapses it will cause chaos and will result in the country being on the verge of bankruptcy.
Don't look at a problem based on one issue because a country is built not only to have programs in one sector, but the central bank is one of the important sectors for the functioning of government because the life of the country has the potential to be disrupted when the central bank collapses.
I agree with your thoughts because the collapse of a central bank will have an impact on the course of a country, so the government will try to do whatever it takes to protect it.
So the issue of a central bank collapse might be a little more difficult and not as easy as we are talking about.
With central banks struggling to keep inflation under control, people are beginning to lose trust in the traditional financial system. Some politicians (eg: Javier Milei) even suggested to abolish central banks as they're the main cause of the world's economic problems.
If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?
What's your opinion? Your input would be greatly appreciated. Thanks.
Take note of this, if central banks will be abolished suddenly and as central banks are the one that is responsible for the financial of a country then expect that there will be chaos in that country there will be no order or what because the value of the fiat currency in that country will have no value anymore and people could take advantage of that, dont wish that central banks will collapse because if that happens then you will not like what might happen to the country, we cant do anything about the inflation because thats what is happening right now because of the goods keep on increasing we could only do is to find alternative work or job that could make as extra income, but what if centran banks abolished then there's no sense in having too much money as it will not be useful anymore, mind that, and I hope it will never happens. If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?
What's your opinion? Your input would be greatly appreciated. Thanks.
With central banks struggling to keep inflation under control, people are beginning to lose trust in the traditional financial system. Some politicians (eg: Javier Milei) even suggested to abolish central banks as they're the main cause of the world's economic problems.
If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?
What's your opinion? Your input would be greatly appreciated. Thanks.
If the global economy continues to deteriorate, do you think central banks will collapse? If that happens, it will be the end of Fiat for good. In such a scenario, do you think Bitcoin will become the currency of the world?
What's your opinion? Your input would be greatly appreciated. Thanks.
I would think that central banks won't collapse for so long until they are not an integral part or the main pillar of the elites' wealth anymore. In other words, the elites would need to shift their wealth into assets that are not affected by central bank collapses. I don't claim that I fully understand the financial system with all its different angles, but my assumption is that the whole banking sector is so deeply entangled with central banks that a collapse of central banks would mean a collapse of the entire financial sector, which mean a collapse of the entire system built on the financial sector, i.e. the world economy.
BTC is now a system outside the existing system. That makes it so interesting to own. Of course a collapse in the global economy would affect BTC because people would suffer from poverty and all the bad things that come with financial distress or let alone collapse. The urge to sell BTC to cover expenditures would certainly create selling pressure for BTC, too. Yet it could be the currency or wealth preservation tool that people agree upon globally. But it would be interesting to do some research as to how a spill over effect of a collapsing central bank system / economy could affect BTC after all.
their collapse seems unlikely in the near term. Central banks play a crucial role in economic stability and have tools at their disposal to address various economic issues.
If hypothetically, trust in fiat currencies were to erode significantly, it could lead to increased interest to Bitcoin. However, for Bitcoin become the dominant global currency, several substantial hurdles need to be overcome. So while the role of digital currencies is likely to grow, the complete replacement of fiat by Bitcoin in the near future seems improbable.
Economic systems are intricate and usually change gradually over time rather than suddenly shifting all at once.
If hypothetically, trust in fiat currencies were to erode significantly, it could lead to increased interest to Bitcoin. However, for Bitcoin become the dominant global currency, several substantial hurdles need to be overcome. So while the role of digital currencies is likely to grow, the complete replacement of fiat by Bitcoin in the near future seems improbable.
Economic systems are intricate and usually change gradually over time rather than suddenly shifting all at once.
Governments are always seeking control/power over the people. And Bitcoin takes that away from them. Don't expect governments to ditch Fiat in favor of something they can't control. Even if El Salvador adopted BTC as legal tender, it still hasn't abandoned the USD. Even Venezuela's been using the Tether/USDT stablecoin to avoid sanctions (which is a digital equivalent to the USD). Not Bitcoin or even Gold.
I guess the decentralization of the world's economy will remain a long and distant dream. Central banks will only get bigger and stronger over time. I fear a "global reset" is approaching with the launch of CBDCs. Who knows what the future of our society will be?
You have people keeping their coins on centralized platforms, you have a few companies dominating mining, you have users unable to spend because of jpg monkeys and you're talking about bringing down central banks. Much hopium?
The dream was always to eliminate the middleman from the system (banks included). Why do you think Satoshi created Bitcoin in the first place? Unfortunately, people haven't moved away from centralizing powers out of convenience. It's much easier to entrust someone else with your funds (banks, exchanges, etc) than doing it yourself (self-custody). This is why the odds of central banks collapsing are very slim.
You have to understand there are commercial banks and central banks.
A huge difference between them, and a huge difference on their actions, people don't deposit their money in central banks, and central banks don't take deposits from the population either.
Even if the economy is in a very bad shape. They can manipulate it by either printing more money (inflation) or raising interest rates to protect the value of Fiat currencies.
So wait, you're telling me that they protect the value of the fiat you were blaming for everything because of its losing value?
Seriously, how the f-word does this even work?
Besides, you've completely ignored a thing, central banks have been around during medieval and modern times, before fiat, dealing with gold, how would you get rid of something that was doing fine in an environment with no fiat money?
As long as governments exist, don't expect central banking to go away anytime soon. I'm yet to see if Javier Milei's promises to abolish Argentina's central bank will materialize.
Again, you're ignoring tens of replies here.
Milei is willing to disband the CB because it wasn't to get rd of their currency and replace it with the USD.
So they will still have a central bank, the united states FED, their money will be printed by the FED, the interest rates will be what the FED decides, and everything will be tied to the decisions in the USA.
All the other countries in the world could do this, but we will still have a central bank.
Jump to: