Topic: The collapse of central banks...Inevitable? (Read 878 times)

Replacing your current with a foreign nations while in alot of debt wont work out too well as Greece discovered after it hosted the Olympics and joined the Euro; it was about to be bankrupted.  They lied to join the Euro while unable to sustain their progress positively; their only advantage was being small enough their former leaders actions were an embarrassment more then any real burden nominally to the large EU bloc.

Argentina is already using the dollar and other currencies in effect.  Part of Bitcoins usage I think comes from countries with failed economic systems, its the currency of last resort to some.

Ironically Dollar is in shortage in some parts of the world, liquidity that comes from that international market might be lacking.  I believe Argentina might find its not an easy solution to use someone else's currency solely.  If they had feasible targets to recovery, massive exports especially shared with Dollar and also USD was very easy policy I guess its possible.

Basically Argentina needs to be an oil exporter on the level of OPEC and they arent.   I cant think of anything they might use instead just as good and in demand in exchange for dollars.


Collapse is the not wording I would use, slowed descent a parachute of sorts is in deployment by all indebted banks.  Not just Greece the majority are bargaining in hopes to delay touch down and reset, I would accuse ECB itself of not out lasting any commodity backed currency or strong export economy FIAT or not.

The problem is most people consider Bitcoin to be an investment tool. NOT a currency. Because of this, it will never replace Fiat. Governments won't like the idea of a decentralized cryptocurrency taking over the economy. But if that's what the majority wants, they'll have no option but to embrace the revolution. If El Salvador did it (although it hasn't ditched the USD completely), other countries can do it.

I'm afraid central banks will continue to be relevant as long as governments exist. There's nothing we can do at this point. Once the world economy goes beyond repair, central banks will reset it to pave the way for CBDCs. There will be more slavery and zero privacy with the new system. When paper money (cash) becomes history, good-old cryptocurrencies (Bitcoin, Litecoin) will be there to save the day. I'm hoping for the best in the future.

A central bank's demise is simply not possible for this reason - it would destabilize every economic sector in every country and have an immediate negative impact on the wider world economy. So no countryman wants his country's automated clearing house service to diverge or the financial security settlement system to break up and the central bank's relationship with every financial arm of his country to break down. But considering the economic progress, the fiat currency as well as the cryptocurrency will be allowed to continue functioning equally.

Government will protect them since there are some business interest has done with those officials so maybe they will just find ways on how they can adopt the new system that's why they are trying to introduce that CBDC so that they could able to condition people to slowly adopt this when they start to launch any related programs. That's why they are trying to create some nasty decisions on crypto because they want to shift people's attention and make crypto look bad to them. Also for sure they didn't expect something fast development happened on bitcoin and they might really think that its growth is unstoppable since now it already reached on mainstream scene.

Maybe not actually a escape route but somehow a legal option we could choose especially if we don't like what they are trying to implement for us. As long they give us freedom to choice its fine and hopefully they will not bitcoin just to insert their personal interest.

I can't say for certain how crypto will play out with CBDCs coming in, there's a chance some electronic cash could be phased out, but who knows how it will all shake out. But CBDCs could indeed change the financial landscape, we'll have to see what benefits and drawbacks they offer.

Spot ETFs might be a double-edged sword. They bring in more people, but maybe not the kind who see it as a currency revolution. Still, I believe in the potential of crypto. Even if it doesn't replace fiat entirely, it could be a valuable alternative. And who knows, maybe Bitcoin can still find its place alongside CBDCs.

Actually this may happen in the nearest future, though it may not be easy but navigating the heat of inflation to many nation mostly the third world countries some has no knowledge on how to handle their fiat system as all strategies has failed as there economy keep dropping on daily basis as result of inflation. As some citizens keep in diversifying there system of holding this currency from fiat system to digital currency by the time it climb above 50-50% of those who make use of digital currency and fiat the government may be forced to weigh their both the best alternative and definitely BTC will be the only option that will make it inevitable.

Nah. I wouldn't call it inevitable and history has pretty much proven that op. Central banks are like the GPUs/Hearts of the world governments implying that they will survive no matter what happens.

Bitcoin overtaking FIAT is just a pipe dream that some believe in while most people including me strongly believe that it will continue serving as an alternative payment method to FIAT.

There is no way that a central bank of a country will be scrapt and be replaced with bitcoins, because central bank are the principal bank in any country they play a lot of roles in sterilizing the economy of any country by keeping inflation on the check and they play regulatory roles by giving out sanctions to commercial banks that are non compliance with the central bank guide line

Since the central bank is the highest level of financial institution in any country and controls the entire banking and financial system of the country, it is really difficult to predict why the central banking system will collapse. But if cryptocurrency reigns in every country, cryptocurrency may be recognized as the second major currency, but I don't think Bitcoin will replace fiat currency.

Of course they won't disappear. Not as long as governments exist. The launch of CBDCs is all part of the plan for a global reset. Everybody knows that. I would've liked Bitcoin to rule the world, but I guess it's too late for that. Especially when centralization dominates the crypto industry. Bitcoin and other cryptos are now "Wall Street's" pawns. You can thank the approval of spot ETFs for that. Now many people consider BTC as an investment instead of a currency. You think BTC will be able replace Fiat this way? I guess not.

At least, we have an escape route from the corrupt monetary system backed by central banks and governments alike. As long as people have a choice, nothing else matters. Hopefully, Bitcoin will live alongside Fiat currencies for generations.

Milei is a tool. I had high hopes for the guy especially after he said some good things about bitcoin, but after becoming the president he proved that he doesn't understand bitcoin at all.
I wouldn't be surprised if all he did was use his image of an outsider to be ellected and once that happened it was back to money printing and bowing before the World Bank.

Will central banks collapse? Eventually yes, but they'll have so much time before it happens that they'll simply reset the currency like they did in Germany, Poland, Zimbabwe, and many other countries.
Maybe some of you remember that it happened in Iceland and Cyprus and it can happen in a bigger country like Japan or China since they both aren't in a good shape.

they will not disappear as they will be replaced by CBDC. its still the central bank though. and i'm not sure if BTC is part of their plan to eliminate but there are plenty more of crypto.

i still believe in the conspiracy theorists about this collapse being planned for the CBDC.  for the CBDC to work, they need banks to fall apart.  we're going to find out what will CBDC offer in the next decade but things will get worse first and we are seeing it happening.

With centralized exchanges dominating the crypto market, banning "Bitcoin" should be a "piece of cake". After all, CEXs are required to comply with KYC/AML. Governments will have a registry of who bought or sold BTC at any given time. Considering that CEXs are the gateways between the Fiat and crypto worlds, banning them would prevent people to get access to the revolution. This won't stop Bitcoin, but it will reduce mainstream adoption by a large margin. Those who still want to get access to it, are going to have to buy/sell F2F (Face to Face) or P2P (Peer to Peer).

It's hard to imagine central banks will disappear anytime soon. As long as governments exist, replacing banks with BTC would only be a distant dream. At least, Bitcoin does the job it's supposed to. The future can't be predicted, so lets hope for the best.

Maybe or maybe not but I just know that Central Bank existed for long time to be here today and if the government continues to exist as a result of democracy we all agreed to use as system of leaders, it will remain firm because they can manipulate policy on citizens to suit their agenda. Didn't you see some days ago Biden propose 44.6% tax on investments? What do you think it's the purpose of doing that? It might not be healthy but because it's propose doesn't mean it can't be enforce.

They said a body is said to be hot but when compared to another body, it will feel like it's hot. US inflation might look deep to them but if you check some countries, you will cry for them man. Currently our inflation is around 30%+ and we are not even in the half of the year.

I don't want to use never and sentiment aside, Bitcoin will not be a currency if the Russian, US, China never support it, I heard Russian are trying to ban anything crypto and China has done same since last bull run. This harsh calls is not giving any green light on Bitcoin adoption not talk about currency. Maybe in the future, if they reconsider, it might be a legal entity but I'm not seeing that happening anytime soon.

It is not the case that central banks will shut down if the world economy deteriorates. Because whenever the economic condition starts to deteriorate then experts must work to fix this bad condition. No matter how bad the economic situation is, people will not want to reduce their use of fiat very easily, no matter how much inflation there is. Because many people including businessmen get good benefits from this even through inflation. But day by day the use and circulation of cryptocurrency is increasing. Since the possibility of profiting from cryptocurrency is much higher than anything else, it can be said that cryptocurrency will be at the peak of popularity one day.

To be honest, many people have no knowledge of economics or politics and they are too delusional to think that BTC will replace fiat or banks. Even if satoshi created bitcoin with the intention of replacing fiat currency, that doesn't mean it can happen. He may be the genius in creating bitcoin but he is not the government and the government is the one who can decide what happens or should not happen in this world.

The only thing we can think of is that the government will not seek to eliminate bitcoins and instead they will be legal and can become an alternative that exists alongside fiat money and banks.
Don't be under the illusion that bitcoin is decentralized which means no one can do anything with it, they can't control it but they can ban us from using it with strong measures.

I understand that, I know there's no way in hell they'll let him do that, but even if he did, he'd be causing more harm for his economy than good. I like how radical he is, there are some of his views and policies I buy but removing the central bank is not one of them.


I don't think "dream" is the word to use. I may be wrong but I don't believe the goal or dream of Bitcoin is to become the legal tender of the world. No part of its white paper implies that. Bitcoin was made to be an alternative currency. Something can't be an "alternative" if it's the main and globally accepted one.
Bitcoin should just be accepted in every part of the world and people should be able to use it freely at any time. It doesn't need to be legal tender.

If they collapse, it will cause panic for sure and will certainly disrupt global economic stability even though they actually have a big hand in maintaining a country's financial stability.

I will be very sure that the solution that will be taken will also be BTC gradually and BTC will be considered as one of the points that will restore confidence in the financial system when conditions can no longer be controlled.

Just wait.. .

Javier Milei hasn't been able to "abolish" Argentina's central bank because of strong opposition from rival political parties. Especially those working in the legislative chamber. Milei's party only has a small dominance, compared to the rest of the pack. He won't be able to abolish the central bank, make BTC legal tender, nor replace the Argentine Peso with the US Dollar. It's only a dream. The same can be said about Bitcoin replacing banks (or Fiat for that matter).

Despite BTC's decentralized design, it will never achieve its dreams because governments won't allow it. The "Elite" will continue to rule the world until the end. I'm fine with that as long as people have an escape route from the corrupt monetary system. Who needs to replace banks when you can become your own bank? Bitcoin is fine as an alternative to existing Fiat currencies. It can live alongside Fiat for generations. But I can dream, can't I?

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.

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.

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?

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.

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.

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

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.

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 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.

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.

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.

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.

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 think that as long as the government exists, banks will still exist because banks are a tool for the government to control us, to regulate the world economy. Additionally, if banks become obsolete and are replaced, one thing is certain: that system will be created by the government, which will never let a system they cannot control replace the banks. It is an obvious thing that everyone can think of, we should not deny the fact that it is inevitable. Bitcoin is great but it won't replace fiat, let alone the banking system.

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.

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.

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.

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 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.


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? 


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.

To be more precise, as long as governments exist, banks and fiat currencies will never disappear, and no decentralized currency can replace them, not just bitcoin.

We still live in a world that is centralized and completely controlled by the government. Many people are gradually forgetting that and they think that bitcoin will be the savior that can help them completely escape the government. It's true that bitcoin was created to help us achieve privacy and financial freedom, but that doesn't mean we will be completely free from government regulation. Or will bitcoin dominate and replace everything the government is creating to control us. As bitcoin investors, we have the right to be optimistic about bitcoin but don't be too delusional and think it is divine.

Not only is this problem happening to the central bank, but it is happening to you in the middle of the central bank.  The cause of price memory has been starting since 2019 In 2019-20, the corona epidemic has caused many economic problems.  But if you notice one thing now,   If you see Russia, the economy has been affected by the Ikram war, and now the war between Palestine and Israel is on the brink of destruction.  A few days ago, Iran's rocket attack on Israel has affected our economy, and the economy has a lot of products around the world that have an economic impact and this is for many countries.  The damage is getting worse because you live in a war where the central bank cannot be responsible for the state of the country's economy.

As long as there's military and the police, there will be central banks.

You're posting this on a Bitcoin forum, you're ok. Now go out to the real world in 2024 and talk to an average person, or try to make some sort of a public declaration insinuating that governments and central banks ARE THE PROBLEM.

At best, you'll have one of every 10 people hear/support you. At worst, you'll get several days to several years in prison.

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.


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.

Absolutely. It's unlikely that governments will give up control over finances anytime soon. So, probably, fiat and digital currencies will likely coexist for the foreseeable future.

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.

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. 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.

What will happen is the extinction of paper money via the introduction of CBDCs (government-issued digital currencies). This means more power/control over people's financial lives. 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. I'm certain the legislative chamber won't allow it. Expect crypto to live alongside Fiat currencies for generations.

You are right because fiat currency is still an option given by the government to use it and at any time fiat currency will be a legal transaction tool in a country as the basis is outlined in regulations

That means we are in the same country because bitcoin is still used only as an investment asset and official fiat currency is still the best choice for buying anything and I don't see any chance that bitcoin can be used as a substitute for fiat, especially in our country.

I agree that bitcoin is an alternative as a revolutionary step and the use of bitcoin and crypto in general is much more appropriate as an investment asset or as another option as a means of payment. Speculative assets may be difficult to implement as a legal means of transaction even though El Salvador has done it and a country that has its own currency will find it quite difficult to change the previous payment system by implementing bitcoin.

Its the other way round. Crypto without Fiat could not exist.

In real terms now Fiat is still the main and so currency needed to buy the necessities of life and Bitcoin only as an option for trading commodities and also only as a speculative asset.

So it's still not a replacement for Fiat, and it's still not going to happen.
Some countries have their own regulations regarding Bitcoin, and in my country Bitcoin is only a commodity asset and nothing more.

Fiat won't collapse because of bitcoin or crypto, but Fiat will remain mainstream with the addition of crypto as another more revolutionary payment option.

A storage service and a money generation facility are created by the central bank in which people place their savings and investments as assets. However, most of the financial transactions take place online with online banking, so the role of banks in everyday life is significant. Everyone will be badly affected if there is any failure from the central bank as it does not only hit an ordinary person but also an economy in its entirety.

With this in mind, governments and financial authorities would always take all measures to avoid the failure of a central bank through different policy and intervention approaches that are essential. They will check if the central bank has enough backup and high solvency to keep functioning even at tough times of economic crisis. Though there is no certainty that a central bank will be free from such problems, with a robust banking system and government backing, the chances of it collapsing into oblivion seem very low.

Maybe yes and maybe no, what we are talking about now is also a mere speculation whether banking will still be maintained or not as the monetary standard of the world's financial system which is still very much believed and starting to be doubted today.

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.

Yeah, yeah, I've kept hearing that years, how is the scaling going?
Do you know how long it will take to switch everyone to LN?
Do the math for opening a channel for everyone in the US assuming no ordinals, no consolidation, and no other traffic, and then I will tell you when CB will die.


Lol, what does CB have to do with the centralization of the economy?
You're telling me that once CB is gone everyone will be free to trade how they want, that TSMC will not have an almost monopoly on chips, that countries will not restrict or tax imports, that you will have the same taxation everywhere, you will be able to deal with every trading partner in the world and everything will be unregulated and permissionless? Again, lol!

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?

I don't think central banks will collapse even if economy are experiencing downfall because banks is the main source of storing and producing money as their savings and investments and majority of people are using bank, especially nowadays that everything is in digital usage, online banking is essential so I think it's unlikely to happen because it will cost too much negative effect to everyone.

Volatility is only a problem when the world still uses Fiat as a unit of account. But once goods and/or services gets valued in BTC terms, this should no longer be a problem. 1 BTC = 1 BTC, right? Bitcoin can already scale to millions of users worldwide via the help of sidechains and L2 networks. It's just that most people don't know yet how to use these solutions to save time and money. Developers must improve UX (user experience) if they want to get people on-board off-chain scaling solutions and sidechains.

Without central banks in the way, the world's economy would be decentralized. Not to mention, inflation will be a thing of the past. "Fix the money, fix the world". But the odds of this happening are slim, especially when central banks have a lot of power invested in them. If things keep going south, they could "reset" the economy to remedy the situation. At least, temporarily. As long as governments exist, don't expect Fiat currencies to disappear anytime soon.

Central banks are one of those "too big to fail" shit and that's true, the thing is that they can lose all their money and traction on the market and they still won't run out of business and people trusting them. To top it all off, all banks, centralized or not are supported by the government as they are an essential part of the whole economy that losing them would literally cause chaos and turmoil to everyone. And if we push for the abolishment of central banks just as what Javier Milei is suggesting, they would need to implement a replacement for it which at the end of the day, is still the same shit only running on different brands of gears.

So as much as I hate central banks with a burning passion as well, given the fact that they are part of the reasons why the current economy incentivizes being rich to begin with at the expense of the poor people's welfare and labor, we can't really reliably take them down or whatever. A replacement will just get reinstated and the cycle continues.

What needs to happen is a complete revision of how we look at money, how we use it. How we create and supplant money, bitcoin is a great start, but frankly speaking, we have to look or create something else.

Banks are a place for citizens to store money and banks function in many ways for the benefit of society. Although banks are one of the main causes of world economic problems, they will still be a necessary center and governments will continue to encourage financial institutions such as banks to become a sure place
The reason bank abolition doesn't actually happen is because they are protected by regulations as part of the process and fiat is still used by most people so it is impossible for banks to disappear in this world.

How sure is FIAT will collapse when humans really need it. Bitcoin is an alternative and I don't think it is a replacement for any fiat currency. It is too naive to say that fiat currencies will collapse while we have to use them to buy cigarettes, coffee and so on.

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 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.

Honestly,at this point there's no way to eliminate fait or central banks.Bitcoin remains bitcoin,bitcoin still serves as bitcoin.Fait will continue to exists and execute and carry out its normal activities.

Central banks collapse will be a huge fallout for many.All segments are going to experience a big breakdown that initializes terrible and dangerous decline in growth and unemployment.
Such collapse can hinder the lives and survival of many.But I still think fait can still act and stand for fait lovers/users.

The economy could collapse, fiat currencies could collapse but central banks will not collapse, and the reason is simple, in order to stabilize the economy during such a turbulent times, central banks will back their fiat currencies with something, most likely gold, and once the crisis is over they will go back to their old ways and print all the money they want, it is always the same story, however anyone that is invested in bitcoin at the time can take advantage of it and make a fortune if they play their cards right.

Watch "Fallout" on Netflix to have an idea on the kind of event.
Sure Ucraine's central bank will cese to exist should Putin have his way.

The collapse of Central Banks is not necessarily inevitable but their stability can be challenged by many factors such as economic crises, political instability or even changes in global financial systems. Cryptocurrencies have gained popularity & offer certain advantages, it is unlikely that they will completely replace traditional banks. Cryptocurrencies face challenges like regulatory concerns, scalability issues & the need for widespread adoption.
They can coexist with traditional banking systems & contribute to innovation in the financial sector. Always monitor these developments & try to adapt accordingly to ensure financial stability in the future.

I don't get Javier's point about "abolishing" them. Did he really say that? If he really would want to implement radical austerity, then wouldn't it make more sense to use existing existing infrastructure to help enforce new laws, instead building whole new infra for new money?

I personally don't see austrian economics, or Javier's ideas as a good solution against inflation, as i don't see them as a good way to stimulate economy. And it will probably hurt employment rate, at least in a long run and cause citizen unrest. To me it's a total experimental gamble with lives of citizens. Bitcoin can be scarce and exist as a great store of value, but it can't be used as a money that would support and stimulate capitalistic economy. And concepts like bitcoin or hard money replacing fiat money seem to come from blindness to history. There's a good reason why countries left gold standard. It's because in times of real crisis, hard money isn't strong enough system to protect countries from not collapsing.

"collapse of central banks" – that's some strong stuff. Some want to tear it down due to high inflation and declining faith in the system. I understand impatience. But eliminating central banks? That's drastic, like throwing away your toolbox because the hammer's rusty

Bitcoin as the savior? Okay. Bitcoin is great; a digital bunker for protecting your wealth. But as daily cash? Not yet. This is too volatile and difficult for most people. A true next-gen cryptocurrency is needed. Something stable, usable by anyone, and lightning fast. Bitcoin helped, but it's not the goal. Certainly, the system has issues. Don't despair yet. Tech is advancing rapidly, and smart people are solving problems. Not yet, but the answer is out there

I think banks have their respective systems in order to prevent this financial global phenomenon from happening.

While there may be countries in which their financials have collapsed which resulted to a super massive inflation, hegemonic and first-world countries have policies in order to at least balance out inflation.

Just to add, I think there is a misconception about inflation. In fact, inflation is good but it must be controlled depending on the market of each country (e.g. Philippines must at least have 2-4% inflation rate).

Lastly, I do NOT think that fiat will collapse any time soon given that all countries use this as their medium of currency. Even if we are shifting to digital payments, fiat will still remain to be the main medium of exchange even in the far future.

I don't know whether to laugh or cry... You hit the point, this is a hard truth. So many brainwashed people around who still trust that people like Bill Gates will save them. I agree, nothing will change... A revolution requires unity, and there is no longer something that in the world, even between normal people... people are divided in many ways and it is very difficult to reach an agreement that will be respected and last.

So we will continue to slowly sink until we hit rock bottom, if that ever happens. Sometimes I think it would be great to hit the bottom, from there only way is up and some recovery, but that doesn't happen, we sink and sink deeper while wearing masks, eating plant-based meat, who knows what we drink, and air that we breathe. Yes, we definitely need one big revolution...

That, as you talk about central banks in general, is not going to happen. And I doubt very much that it will happen with just one of the big ones, like the ECB or the FED. If you tell me about a small country with extremely high inflation rates it could be, as has happened in the past, and what they end up doing is dollarising. But with the stronger currencies it is not going to happen even in the medium term.

Javier Milei has a pretty radical libertarian stance even for Argentina, and we're talking about a country that's been suffering from hyperinflation for decades. In cases of complete mismanagement, abandoning central banks and adopting someone else's currency or even a decentralized currency might be worth the risk. But I think that doesn't apply to most of the world, where fiat isn't always doing great, but there is some sort of stability and policies generally work. In those cases, I don't think getting rid of central banks would be a popular or appealing idea. Aside from stability and familiarity, national fiat can also be a part of national pride, and central banks are needed for that.

It was never planned to be a worldwide replacement of FIAT, planned was a P2P for which Bitcoin has become obsolete.

No, Bitcoin will not become the currency of the world. Right from the beginning of humanity, humans love to be in control. Human beings love  power and if I am referring directly to the government, so be it. The government will not agree for Bitcoin to be a currency of the world unless they make sure that they 100%  regulating the system, if they can not regulate the system the way they want, believe me, they will create their own cryptocurrency which they can either create only a limited supply so that they will not also have the same problem they are facing with the Fiat money that they can print as much as they want. Bitcoin will also be used by multitude of people around the world but if the government sees it as a threat to them, they will build their own crypto.

Its another dumb idea from politicians to get people's attention I guess. There is no way for a country abolish central banks and as much as we hate banks, they are staying and imagine what kind of chaos will happen when it gets shut down. Anyway inflation are staying, countries are going to print more money and in case shit happens then redenomination is the only way to control that shit


As much as I love bitcoin, thats not going to happen

Since every countries have there own central banks that controls there fiat currency, it will be very difficult for the world to decide to abolish fiat and start using Bitcoin. They could rather create a stable coins which can be used for transactions rather than choosing Bitcoin which is very versatile and could make holders to lose money immediately if the price of Bitcoin suddenly falls. We need to have understanding about the market so that we are not going to do something that is going to cause us to over look some certain things in the market. Bitcoin will be adopted by the world soon but that would not make it the world currency.

No. Central banks will adopt the recent trends and opportunities the financial market has to offer, including the features provided at decentralized finances, so they centralize it in order to benefit themselves, like always, while average adopters pay extra costs to be allowed to continue operating on such niches of the market. One example are cryptocurrencies, which central banks are already trying to adopt or at least copy the technology behind them to launch their own coins and tokens.

That is how they are merging the fiat and cryptocurrency elements into a single coin, so they can ensure fiat is never going to disappear. As consequence, there is no room for another kinds of coins or goods to replace fiat currency in the future. Moreover, I don't think most people in our socities have the required mindset to do this replacement.

Central banks are not going anywhere for a long, long time. Take America for example, its central bank allows it to exert immense pressure on other countries that either directly or indirectly rely on dollar trade. They are the reserve currency of the world, because they are the most trusted and there's not really much chance a country like China will ever be trusted more with their style of government. America can indirectly pressure governments to change laws that may adversely impact global trade by cutting them off and while it might not be super effective if you look at Iran for example, it does isolate them and makes them that bit poorer when they decide to ignore America. On the whole that sort of influence has generally been useful to the world.

Until central banks have collapsed, it wouldn't be wise to attribute all the economic problems to them. Although, I would think that there would come a time when people will resort to using crypto currency and perhaps any other currency that isn't connected to the central banks, to trade and complete transactions.

With leading countries and regions like Lugano, El Salvador, Brazil, U.S, U.K  among others, adopting BTC as a solution to aid their economy, more countries will do so in addition and am very sure that the central banks would adapt to accommodate cryptocurrencies and exchanges, so as they don't get left out and obsolete.

I wonder what would happen if Bitcoin becomes the currency of the world considering how volatile it is. Everything will start to become unstable when it comes to finances, companies, businesses, and individuals will have their money and status changing every other day because the price of Bitcoin will go down sometimes and then go up again, and since there won't be fiat currencies, there will be no possibility for people to sell and buy Bitcoin during bull and bear markets.

I think that wouldn't be a very good solution. Bitcoin is only good if it has another stable currency on its side so that things don't become completely unstable and go out of control every now and then. It will be very difficult and I can already imagine everything in my mind.

No, bitcoin will not become a world currency, some countries have their own fiat then it will maintain with the control that the government has, a country still has abundant natural resources then it will be difficult for the economy to deteriorate.

Banks may collapse but the state will definitely fix it again after the economic collapse so banks only control fiat finance while the state will always be present where it stabilizes again.

Abolishing and "shutting down" aren't the same thing? Without central banks, the economy can't be manipulated by corrupt politicians. Separating money from the State is the first step towards "fixing the world". We the people, have given too much power to the government and central banks. So they will continue to do as they please, even if the economy continues to sink all the way down the drain. You can see why governments in the past (particularly the US government) have bailed out banks in times of financial crisis.

Bitcoin was created as a response against banks' and governments' mishandling of the economy. No central authority means greater fairness and financial inclusion. I know BTC has failed to replace banks so far, but that does't mean it's the "end of the world". If by any chance central banks collapse, you can bet the world will abandon the Fiat Standard and move all the way to the Bitcoin Standard. Prices of goods and/or services will be denominated in BTC instead of Fiat. Wouldn't it be great to live in a society where people have control over their own money? Not governments or corrupt banks. Nothing is set in stone, so anything's possible.

First of all, I don't think that global economy will deteriorate anytime soon and even if that happens the central banks won't collapse. I know that in some conditions the central banks of few countries may collapse but that won't impact the global economy by any means.

The fiat system has been present for a long time and it won't end anytime soon either. I know that most people who see devolution want to give up on that fiat system but it's not an easy thing as that system is the most dominant system of this time and that's why it won't end soon.

Even if fiat system ends, then still I doubt that the world may accept Bitcoin as the international currency. I know that in most cases Bitcoin could be a great reserve currency but I don't think that it would be ever accepted as international currency like US Dollar.

I do not think central banks will collapse unless the country ceases to exist. Fiat may crash due to hyperinflation but all the central bank has to do is to shift or integrate another monetary system that they think will give solution to the high inflation.  The central bank is the control of a country over its financial system so the government will do everything it can do to make this institution survive.

I believe as long as a country survives, its central bank will never collapse, it may undergo several changes and development but as long as the country exists, its central bank will continue to exist, IMO.

Javier Milei wanted to abolish the central bank of Argentina because he wanted to get rid of their own currency and start using the USD.
So, technically they would still have a CB only it wouldn't be one that is controlled by their government!
Besides, even with Bitcoin, you would still need a CB, a central bank is not just a thing that prints money, just like banks are not only in charge of your debit and credit card.

Besides, the Central Bank of England was established 1694, do you see them going down after surviving the gold standard for 3 centuries?

They're all experienced, I mean the ones that have been in the business for so long that have experienced a lot of financial crises.

All of them have contingency plans and I doubt that the most established will be abolished. As for the central banks, they've got a huge role for a country's economy.

Whether we like it or not, it's not too easy to see that many of these institutions and banking companies to collapse and just go out of business.

At this point central banks don't care about the well being of a country neither the inflation, they work together with federal government so fiat system will stand firmly regardless the allegations. Concerning fiat and bitcoin or bitcoin standing as a digital currency can't beat the economy inflation neither, from my opinion bitcoin don't necessary need the crowd before we can say bitcoin is the best. If bitcoin is working for you as an investor, trader, business man etc then create a comfort zone for your investment. When I hear bitcoin taking over the fiat currency I believe it will not happen, bitcoin adoption is not forcefully but willingly so for example if fiat currency no longer exist we can't impose bitcoin adoption on citizens. Just imagine the world use bitcoin as number one currency (legal tender)and you think people will not still complain? people will always find fault no matter the situation

If the central banks collapse, it means the whole country will collapse too.

Since there was country that no longer exist due to crisis i.e. Yugoslavia, so it's possible there will be a country that in debt and bankrupt, rich country might occupy that country. If you think Bitcoin will replace fiat due to central banks collapse, then you're live in your own imagination.

Would take a long time to eradicate fiat in the monetary system worldwide. This is because some countries do not have much technological advancement so they still value their fiat more than any other currency. Central banks will still continuing printing fiats in as much as those with the supreme powers are getting their little  benefits from the system. Of course we would know by now that the fiat system is a little bit corrupt if not entirely corrupt.

The Central Bank continues to survive, perhaps the system will change when it collapses if the central bank will create a new pattern to maintain international economic stability, most recently bitcoin will continue to follow the movement of fiat currency and conversely fiat currency will follow the digital currency or bitcoin system. Another development is that the economy is getting worse, as can be seen from the soaring price of gold and the increasingly chaotic world economy. Conflict between countries is also one of the causes of instability. If economic experts do not take concrete steps, it is possible that a crisis or recession will occur.

The only way for central banks to fail is for the apocalypse to happen and send people back to the stone age. The collapse of central banks would also mean the collapse of nation-states, which would also mean complete chaos and anarchy - so even though today we do not live in an ideal world (far from it), imagine a world without any control.

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Bitcoin exists as an alternative, not as something that will replace the existing financial system. At least 95% of people have never had anything to do with Bitcoin, which has been around since 2009, and less than 2% have ever made any transaction involving paying for goods or services with it. The numbers don't lie, and they clearly say that Bitcoin is simply not an option for most people, at least not as a currency.

Javier Milei never suggested that the central banks should be abolished. He suggested that the central bank of Argentina should be closed down and Argentina should accept the US dollar as a national currency, which means that the United States Federal Reserve would become something like a new central bank for Argentina.
I don't see any people losing faith in the traditional financial system. The people keep using cash, credit and debit cards. Almost nobody switched completely to crypto.
The global economy isn't deteriorating. The global GDP is growing. The fact that some countries are having a hard time doesn't mean that the global economy is deteriorating.

I think that's unlikely for a complete collapse. Central banks have a lot of tools at their disposal, and they'll likely adapt their strategies. We might see some reforms or even new institutions emerge. It plays a big role in financial stability too. Just scrapping them entirely could cause even bigger problems.

If things get really bad, though, who knows? Fiat currency losing trust entirely is a possibility. But is Bitcoin becoming the world's currency? I'm not so sure. It's still volatile and not widely accepted for everyday transactions. There might be other contenders, or maybe a whole new system altogether.

No, Central Banks and Fiat currencies will not fail, because it is one of the most important tools for governments to control people. Governments will continue to increase inflation and taxes and they will control the supply of Fiat currencies to support Fiat currencies survival.

Bitcoin cannot replace Fiat currencies, because it is simply not possible to "print" money out of thin air, like they do with Fiat currencies to feed the demand for debt. (The global economy are one large debt monster and governments and Banks are constantly feeding it new victims)

Banks will not disappear, but few banks will collapse and new banks will comes up.

As long as you, I, and most people still using fiat, not using other currency, banks and fiat will survive even though there are many good currency and assets that we know better than fiat. Moreover in some regions, you're only allowed to use the legal tender that accepted in your countries, if someone broke this rules, they deserved going to jail.

If the central bank collapses, get ready for a primitive life. Have you seen the web series Fallout? IT's streaming in Amazon prime. Go and watch it! If central bank falls with no central authority to control fiat money, that will be the life you will be living.

Politicians always have their own vested interest. If you want a good life, never listen to them! Bitcoin is not here to become the global currency. If it does, all mining companies will become the governments and control the economy and military power. Unless there's a nuke war which wipes out everything, central banks will never fall and Bitcoin will never become a global currency.

That is not true, Central banks do set the rules for the banks in a country. The people who are in charge are the problem.
A central bank needs to be independent. Milei only said the close the central bank but has made no effort to do so.
Banks are the very reason any given system is able to maneuver.   

Of course there is always a chance that central banks stop functioning properly and they stop regulating the value of fiat which will lead to hyperinflation and the fiat basically not having any value anymore whatsoever


If we are talking about bitcoin today then it would be hard to use it in a nation wide scale considering its scalability issues and not to mention its volatile nature.

Central banks collapsing are kind of unlikely anyway so what we’re talking about shouldn’t actually happen

Bitcoin has failed and because of that Bitcoin cannot be the currency of the world again and all because of the congestion and the high transaction fees. If Bitcoin becomes the number one currency in the world then inflation will be more than like this present generation because because of the high transaction fee and people, sellers will like to sell their goods to cover the high transaction fee they have paid when using it to buy things. And also the main purpose of Bitcoin of p2p which Alice and Bob made their transaction has been failed. The Whitepaper said Bitcoin is a digital currency to buy goods and services online. How many people in the world that is using Bitcoin has used it to buy things online this week. Even this year in my country it would be problem.

So the existence of the central bank with it commercial banks are still vital in the world. Everyone now is going to investment with Bitcoin and nobody wants to use it to buy and no shop wants to accept it mostly in the third world countries. But I can't speak for the advance countries. And it is only politicians from the leftist side can asked to abolish central bank and not the capitalist scholars. And if we are to use Bitcoin as a global countries then the transaction fee should be eliminated.or it should be very minimal for even a ordinary groundnuts seller can when selling on the street and Motor parks.

Central banks are not the problem of the world's economy rather those politicians sitting at different chambers to make obnoxious laws for the economy are the culprit. Central banks are there to implement those policies coming out from those corrupt and selfish politicians whose interest is to protect their businesses at the mercy of the country. They hardly would allow a policy that will affect their businesses or interest pass the process of enactment. So they are the problem and central banks implement their problem. Usually, central banks are agent of executive and don't make laws but operate on the laws made by law makers who are politicians.

Another factor that is the problem or challenge is natural or artificial occurrence not planned for like natural disasters, pandemic, wars etc. So when these happen, it destabilizes the monetary policy of the financial institutions and policies not planned are carried out like printing of money which in itself is prone to inflation if not properly managed.

Don't think so. On the contrary, they'll become even stronger. Central banks can only fail if there is a revolution like the French Revolution. As long as people keep being sheeple, nothing will change.

1- Wear a mask > There were more brainwashed mask wearers who fought non-mask wearers.
2- Get a jab or can't travel > Jab takers fought no-jabbers like their life depended on it.
3- Don't use mixers only criminals use them > Sir yes sir I don't wanna go to jail whatever you say sir! Orders sir!
4- Eat plant based meat, cow farts are killing the earth > I can eat pflant shit all day sir!

 

Central banks will stay even if the fiat is facing hyper inflation and they will start collapse only if the government itself started collapsing.

The chances of all Central banks will cease to exist is close to zero but hypothetically Bitcoin can be one of the preferred payment options if that happens.

There is no country that do not use fiat. Most countries have their own fiat while few countries depend on another country's fiat. Even if some countries start not to believe in fiat, some countries will continue to use fiat as legal tender. But as it is for now, all countries in the world still prefer fiat and see inflation has some advantages.

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.