I think we can all agree that cryptos are here to stay and only the form and applications are yet to be determined.
Has any one considered the threat to independent cryptos that a gov't or central bank issued crypto represents?
A crypto tethered to the US dollar could gain rapid widespread acceptance by banks and business entities making it possible to buy anything from a soda to a car in crypto. Debit card readers could quickly be converted. bank account balances could be held in dollars or cryptos etc.
While we might get the benefits of electronic payments that come with a digital currency, we would completely lose the protection from the manipulated value (or devaluation) of the dollar. That won't stop the banks from doing it. In fact it's an incentive for the banks to do it. Their tethered crypto could get widespread usage in a couple of years and make it very difficult for non tethered cryptos to gain acceptance. Widespread business acceptance of a crypto will lead to widespread acceptance by the non technical general public that don't understand the difference.
You're right, a crypto backed by the govt and a central bank would definitely gain a major widespread adoption in the blink of an eye, especially if the big multinationals around the world start accepting this new cryptocurrency into their business. I think i've read somewhere that the big central banks in the world are already working on creating their own cryptocurrency, so it's a matter of time before we see them in the crypto market.
But what you're missing here is that people who use cryptocurrencies use it for several reasons: anonymity, privacy, security and most importantly, they use it because they are decentralized (at least most of them). A cryptocurrency with a central administrator will most definitely have a hard time getting an approval from the crypto community.
And think about it, once people figure out how cryptos work they'll start asking themselves: why should I use this crypto issued by the govt when there's many other cryptos out there that offer the same thing but without me having to pay taxes? (because you know that this new crypto will come with some sort of regulation/taxes).
So I wouldn't say independent cryptos would consider it a threat, there are other things that could represent a real threat to cryptocurrencies.
