Quote from: Smartprofit on December 12, 2022, 12:27:10 PM

In my opinion, the digital dollar (CBDC) could negatively affect the future of Bitcoin.

Currently, the first cryptocurrency can be bought and sold for cash. Cash is untraceable. Therefore, governments cannot ban Bitcoin. Also, in many cases it is difficult for regulators to correlate information about the purchase of Bitcoin with the identity of its new owner.

However, the digital dollar (CBDC) allows regulators to fully control all cash flows in the country.

This gives them the potential to control all Bitcoin transactions and even completely ban the circulation of the first cryptocurrency.

This would only apply to centralized exchanges. But not P2P transfers happening on-chain. A person could simply buy/sell Bitcoin without having to go through centralized exchanges (which are traceable by the government). Of course, CBDCs will enable governments to have a full-scope of a person's transactions. But as long as you don't disclose that some transactions are related to Bitcoin trades, you'll have nothing to worry about.

The Digital Dollar or any other CBDC for that matter would only mark the beginning of the end for paper money. Everything else will remain likely the same as it is right now. Bitcoin and some other cryptocurrencies are decentralized, so it's likely they will live alongside digital Fiat for generations. Who knows if we're closer towards a cashless society than we've thought? Just my opinion