Topic: Will governments create their own cryptocurrency that will replace fiat? - page 19. (Read 39306 times)

I'm not sure how this is going to happen in the reality, because at present few countries that have created their own cryptocurrency have the paper money in use. So cryptocurrency will be generated by the governments for the ease of usage without destroying paper money.

It may happen in the future. You know that many governments work on how they use bitcoin for their benefits. 100 years are very long term. I think in the next 50 years some of countries will start creating their own cryptocurrencies. Paper money will be lose its value.

I think so if crypto currency is really the future, the government will not leave that out of their control

I think, the governments will surely create cryptocurrencies under control to them. Which will differ from bitcoin in at least two properties: not anonymity of transactions and centralized control. Master-nodes will belong to the government, the mining will be performed only by the licensed companies. It is inevitable, and the bitcoin should compete with the state cryptocurrencies.

According to the article ( you can google it) .Many countries has been planned to make their own cryptocurrency. But I dont know whether to replace fiat or not. I think it's mandatory for their citizens maybe it would like a gold, limited quantity to raise their crypto value. CMIIW

I agree with groll. The government may be open to creating and establishing new systems, but will not fully disregard what most of us has been used to. Take into consideration fiat, yes the world is evolving with the usage of electronic money but let's not forget that not all of us has access to this kinds of platforms. Mass adaptation may take awhile but with proper implementation and assurance that all people are capable of accepting the changes with the system, then I think there's nothing wrong with the government establishing their own cryptocurrency.

Weak economy countries will start to release their cryptocurrencies soon.
This will survive their economy in long term but this will be a revoliton on world economics.

 I don't think so that they can replaced fiat cause ever since that's we use in every day .

I think it is inevitable fact, very soon major governments will have their own “cryptocurrency” simply due to its inherit utilitarian and security purposes.

People can easily exchange it without boarders plus that it cannot be double spent (anti-counterfeits)  They can monitor it and freeze if necessary. Forex will exchange government backed cryptos in addition to traditional fiats. 

We have to accept it that it is the future of currency and certainly governments will adopt or face being the dinosaur.

What interesting though or rather the question should be is what is gonna happen to bitcoin if that happens? For me I will choose the answer that it can be good for bitcoin, because by then people can easily buy bitcoin using government cryptos (no need for lengthy bank transfer or expensive credit card fees) and by then bitcoin will evolve to full blown digital gold and not as digital currency. Price will stabilize to an ever increasing up trend until it reaches its maximum supply. People will still speculate, manipulate, hedge like what it is now but the general trend is nothing but up because of its finite supply. This is bitcoin advantage over physical gold (gold seems to have an infinite supply).

I think we are going into this direction because government can get both worlds in doing so (taking the advantage of new technology while at the same time maintaining its control over its people).

To predict what the government will do, let us assume that we are the government and lets state what are we going to do. If I am the government I will do this:

1.   Ban bitcoin use as form of currency (medium of daily exchange); this is stablishing economic control
2.   Introduce government backed crypto currency (centralized); harnessing good benefit of the technology
3.   Introduce centralized wallet (aka Banks, ownership is verified); control over people
4.   Allow its exchange in forex and crypto-exchanges; freedom to its people
5.   Allow people to own bitcoin as form digital gold (not as currency) ; freedom to its people

In this sense I think bitcoin will prevail and here to stay……

I would think they will yes.

Unfortunately a lot of banks and big government and big BS will happen.... By BS I mean stuff like central banking and controlling the coins and all that crap. Likely wouldn't be open source either and they would have the right to censor and ban people from using it(which is scary!!)

Yes it may happen because future is all about digital currencies, i think government will try to create their own digital currency which will be centralized and government will have a total control over it. Because government will never accept any decentralized currency as a national currency.

I don't think that will have a lot of support and following though since it goes against the nature of btc that people look for. Decentralized and beyond any government's control. I don't think any government would try that and it won't qualified as a cryptocurrency if ever.

Of course! Governments want to control their people. They want to centralize everything and they will definitely create cryptocurrency for their own nations respectively.

Well demand wouldn't be such a problem for them if they stop accepting paper money and start accepting only the cryptocurrency that they have made. They can start by making it impossible to use paper money to buy something but really easy to convert them into cryptocurrencies. One thing, the government is different from the strangers here that makes altcoin projects. They don't need investors at all as they are the government. It's not a project, but rather it would be a new regulation.

It is in government's best interest to replace fiat currencies with digital ones as this will eliminate illegal activity. Taxes will have to be paid because the government will be able to track all transactions. Why wouldn't governments want this?

I do not see any sense in creating a crypto currency for each country, because many of them will prove to be a failure because of a lack of demand. Now many different crypto-currencies are struggling for the primacy and the creation of new ones is doomed to failure.

That answer doesn’t make any sense at all…government has nothing to do with crypto currencies. And what do you mean by to help us not to carry money around? Doesn’t your bank offer an online service? Maybe they don’t. But here in my country, they do. And you can send payment to someone from your bank accountby just using your mobile phone.

I think we will see countries starting to make their own cryptocurrencies so they can control it. This will be different than Bitcoin however because theirs will be a private blockchain that they can control the way they want.

Bitcoin is different because it is a public blockchain or an open ledger that no individual has control over. It is specifically designed to be difficult for a government or group to control.

That’s true. No government is going to take this risk. At utmost, any government under the pressure of its public can make these currencies legal and give them the status of secondary international currency. Digital currencies have to be legalized and adopted by governments if they want to survive.

I believe they will, its only a matter of time. Driving factors include lower costs, capitalizing on the benefits of blockchain technology to hold their grip on power, competing with other states (with their own economies of national cryptos), more effective tracking of tax revenues. I don't think they will fully replace the national fiat though, acting more like their "sanctioned digital equivalent" and being pegged to the fiat currency, as an attempt to stabilize its value.