Topic: What happens to Bitcoin if Central Banks start issuing their own cryptocurrency? (Read 1440 times)
October 25, 2017, 05:48:51 AM
Digital currency has already been existing for years with banks being the prime mover. They are only different with bitcoin because they are centralized and not distributed. And even with this already online bitcoin wont still be affected because there are features bitcoins have that banks wouldnt even dream of creating.
October 25, 2017, 05:34:25 AM
I don't see why a central bank would issue a public cryptocurrency. Central banks don't interface with the public, only other financial institutions. The primary purpose of cryptocurrency is to remove need for trust between the parties involved, and banks have to implicitly trust the central bank and to some extent each other. This is the area for central bank to offer a cryptocurrency, to use a secured searchable blockchain to know who holds and owes what, and to whom.
October 25, 2017, 05:07:52 AM
I believe that if central bank start issuing their own cryptocurrency there will be a very strict regulatory measure attach to the supply and circulation of such cryptocurrency.
October 25, 2017, 05:01:01 AM
if talking about a bank, it would have something to do with the government. then what does a government want? would want it all controlled by it. if any bank in a country makes altcoin, I think it's very clear the purpose is to be in control in a centralized environment and I do not think it can be public. and I do not think it will affect bitcoin, bitcoin is public and financially free.
October 21, 2017, 04:34:52 AM
I don’t think this will affect Bitcoin in any way. People like Bitcoin because it’s separate from “Big Brother” and I don’t think there will be so much enthusiasm for a crypto project from the major banks.
October 20, 2017, 11:27:12 PM
Easy answer : This Alt coin will be a copy of fiat currencies under full government control. Instead of money being printed from thin air, supply in this Alt coin will be managed by central banks. < They can change the supply at will, without ever having to have any type of consensus from the citizens >
Once these Alt coins are in place, pressure will be placed on Bitcoin users to stop using it. < strict regulations and laws >
Governments < let's say most > are chosen by their voters, so if you allow this to happen, you are part of the problem. Vote for a government that supports Bitcoin.
Once these Alt coins are in place, pressure will be placed on Bitcoin users to stop using it. < strict regulations and laws >
Governments < let's say most > are chosen by their voters, so if you allow this to happen, you are part of the problem. Vote for a government that supports Bitcoin.
Yes I support this statement vote for government that supports bitcoin but which government do you think will support a decentralize cryptocurrency called bitcoin as they dont get tax if they support it.
October 20, 2017, 11:22:57 PM
Decentralized will always beat centralized. Bitcoin and other cryptos will continue to thrive even if banks start to issue their own.
October 20, 2017, 11:20:03 PM
The digital currency of a particular country will play a certain role mainly within a particular state, which issued this crypto currency. Great value such crypto currency will not have. They in no case can really compete with bitcoin or even other well-known decentralized altcoyins.
October 20, 2017, 10:46:11 PM
Of course this is the thing I really look forward to, if the central bank start using cryptcocurrency it will make the coin very popular and easy to use by anyone including from other countries.
October 20, 2017, 09:55:41 PM
There are so many consideration upon implementing the blockchain technology in a central bank. And for sure this cryptocurrencies won't be decentralized, and it would be implemented for their own good and not for the sake of their citizens. Also the central bank won't made a clone of bitcoin or any other alts for the reason of they will always need to follow traditional ways for legality purposes. In that case, I don't think consumers would be liking that thing. So bitcoin will always be their 1st choice, unless they totally forced their citizens to use the central bank issued coin.
October 20, 2017, 06:50:06 AM
Nothing will happen Bitcoin will show his strength.
October 20, 2017, 06:31:54 AM
This is definitely what they would be considering in this era where the cost of printing money on its own is still expensive despite the several methods of e-money developments that have happened over the years. So any technology that would continue to push their cashless policy forward is welcome. However, the concern would be centred around the acceptance of it in the society since its going to be limited to respective countries.
October 20, 2017, 06:24:53 AM
I think yes because now a days almost all altcoins connected to bitcoin
October 20, 2017, 06:19:43 AM
When central banks start issuing their own digital currency, sometimes the circulation of bitcoin might decrease to some extent. The same never lets the bitcoin fall in value or go out of use. Also when each country's central bank issues an cryptocurrency the usage gets limited within the country and for cross border transactions a common asset is required. Bitcoin might serve as the common asset.
October 20, 2017, 06:15:53 AM
I think bitcoin needs to forge its own course and stop looking over its shoulder at what central banks are doing. The primary difference between bitcoin and central bank issued crypto currency is, and always will be control, borders and community. Central banks want to control their currency, dont want community consensus and will run a currency to the benefit of their country not the world.
October 20, 2017, 06:12:19 AM
Posted today on Reuter's wire:
http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html
They are thinking about it! Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?
http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html
They are thinking about it! Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?
Nothing will happen if they will issue their own cryptocurrency and they are not for the cryptocurrency because they have their online banking and other the same features which is centralized. They'll not going to gamble their business for cryptocurrency because it won't be called as a cryptocurrency if it is centralized. Crypto's are well known of it's decentralization and even if they will issue their own crypto, I doubt it many will fall for it but only those uneducated people about crypto.
October 20, 2017, 06:02:54 AM
They already have a digital currency, what do they need a crypto currency for?
You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.
You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.
i agree if cryptocurrency manage by the central bank have rules to reagulate the bitcoin how to control like fiat money and taxes for bitcoin as currency are scary it because all currency under control by the goevernment have regulation.
October 20, 2017, 02:42:13 AM
Posted today on Reuter's wire:
http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html
They are thinking about it! Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?
http://www.kitco.com/news/2017-09-17/Too-Soon-to-Determine-Risks-of-Central-Bank-Issued-Cryptocurrencies-BIS.html
They are thinking about it! Bitcoin has made an inroad, but will it make bankers honest? Or is it just a ploy to regain control of the money supply?
The learning curve in cryptocurrency is way too steep. How are they going to launch an indoctrination program when it comes to their cryptocurrency. The central banks cannot possibly make that happen. In the case of bitcoin it took 8 years to indoctrinate people to come to a point where they know everything about it. Through word of mouth. But banks can't do that. They need 100 years to make people comfortable in using a central bank issued cryptocurrency. Besides it is a scam. They can't create a cryptocurrency as popular as Bitcoin. Bitcoin community is spending zero dollars to promote itself for the past 8 years. But central banks can't do that even if they spend billions nobody would want it. Bitcoin rose to popularity because people hated the incompetence of central banking. So why would people with cryptocurrency skills adopt a central bank issued cryptocurrency.
October 20, 2017, 02:16:36 AM
Nothing will happen to Bitcoin, because banks are already working with virtual currencies using encryption right now. They will never issue a crypto currency, that
a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...
Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.
a. is confirming transactions completely decentralized
b. people can mine with their computers
c. has a public ledger
d. has a limited amount
e. is open source
f. ...
Means, that everything a bank will issue might even be called "Cryptocurrency", but it will definitely not replace the idea of Bitcoin.
This can be true. Governments via their central banks can issue their own version of cryptocurrency and can even be backed by the government but they can never be cryptocurrency in the strict definition of the term because of the embedded control which the government can yield on the currency. Well, they can impose order for people to patronize it in place of the fiat money but it does not mean that Bitcoin can be gone. Bitcoin has the ability to evolve and transform itself if there is a need it sees. Plus it can take many years before any government can be able to perfect their own version of cryptocurrency.
Exactly, crytpo is resistant to how legacy centralized systems work. You have to give up control to be trusted. Banks could make a crypto, but then they would have to give up all control of it.
Also when we get to the x Trillion mark, banks just wont have the money anymore.
I am not saying banks or fiat is intrinsically bad, as they can bring capital and energy Labour, although if I can say they have become massively sub optimal due to lack of competition which then translates to massive and systematic miss allocations of wealth driven by gov policy (via issuance of licenses) and total lack of market discipline.
I don't think there is any part of the economy that remains untouched by quant easing, bad loans, bad allocations of wealth.
Essentially the face value of money is completely delinked to work value, and we are in hyper inflation at near record low interest levels.
Look at cost of living and property costs, both types of commodities that are hard to rig going up massively.
BTC is the only un-rigged asset left.
October 20, 2017, 01:46:25 AM
They already have a digital currency, what do they need a crypto currency for?
You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.
You know what happens? Nothing. It's no different than the fiat currency that central bank already owns and manages. The central authority makes them no different than fiat currency. The cryptology part is secondary to this fundamental principle.
yeah when they really making their own cryptocurrency it will break the tag line of bitcoin (and other cryptocurrency) about "decentralized currency" central bank will control all about their up coming alternative coin which they going to make. we don't see decentralized aspects coin anymore of their coin.
Maybe because crypto currencies get more popular every day the central banks thought they want to participate and bring something similar on the market. But I don't see who would want to buy a state controlled crypto currency.
It would just be another fiat money though in digital form and will never be on the league of the Bitcoin or even Ethereum that we know of. In fact, if not manage right, it can even be a big joke. Why? Cryptocurrency came into being because we want to get away from the control of the government where anytime they can just order to print more paper money thereby slowly destroying its own value and can lead to more inflation. I know that China and Russia are right now planning to have their own state-controlled and backed cryptocurrency. Of course, since it has the backing of the government there can be some success initially but people will just revert back to the paper money because the government can not create any possible future gains for the users or holders to use the digital currency they are introducing because the value is controlled by the government. Again, in the end, it would just be a big joke.
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