Fiat digital currency... I thought nearly all fiat currency was digital already, as in it doesn't exist? Central banks should stop trying so hard to release their own shitcoins.

I knew it, if it does not happen now it will happen soon. Everything about economy, financial policies and technology in Asia points to that direction,  and if it can be adopted by a 1 billion country people, the value will be erupting. China has the recent track record of succeeding. This could help the trade of produce through online store to neighboring Asia countries, South America and Africa. If the government promote it. lots of money will be invested which make a big competition with bitcoin. By rumored Asia bitcoin centralization and mass adoption, bitcoin will be able to compete and survive it.

So China's central banks discover the altcoin market. Great news.

Not surprising, what the central bank has to offer is simply digital fiat money under their central control. They are basically replicating PayPal as a national service. Innovation: Zero, just as the government loves it.

That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

Well its up to any of government. But such altcoins will become centralized not decentralized. And centralization can make it common. So even any of country launch own cryptocurrency it cannot beat bitcoin.

Even it will support bitcoin to become more valuable.

Why did the chinese panic sell in recent hours at the news of the government wanting to do something about bitcoin? (they didn't even mention the word ban as far as I know..) the government has a very powerful network effect. They can trigger panic sell on the weak holders, they will make them run for the comfort of a regulated and stable price currency. But of course, you'll never get rich holding a boring ass centralized, regulated closed source crypto so they will eventually come back to the excitement of bitcoin.

the point is that the china central banks altcoin WILL BE THEIR FIAT

to citizens they wont see the difference at first. the banks will just swap their old database to a new database in very laymans terms. citizens wont notice the difference to how their bank balance is stored. as thats behind closed doors. but later they will start offering NFC smartwatches or  smartphone apps instead of debit cards/paper cash.

the benefit i can see is instead of card cloning and merchants storing card information. the hardware wallet(smartphone/watch/wristbands) just sends a signed tx to the merchant, making each transaction unique to that purchase. to avoid card cloning or merchant hacking. due to the fact a banking customer keeps the privkey safe in their own device.

the downside i can see is lose the device, lose access to your income and starve. in a utopian situation that was permissionless.. so to solve that, ofcourse the banks will have access to your key to 're-credit' you or give you a new device. making it still a permissioned/middleman payment system, meaning the system wont change much just the way a customer pays (NFC smartphone/watch instead of magnetic strip debit card or paper cash) will change

funny part is that when people talk about media coverage of bankers using blockchains. first they try to say fiat is bad. but then go and shout happily about how it will make them profits when bitcoins FIAT PRICE rises so they can exit bitcoin and return to fiat.(facepalm)

banks hyperledger sidechain announcements do not effect bitcoin. (the technology) as they are separate things. so if all you care about is fiat prices, your not only missing the purpose of bitcoin. but also the hyper inflation of fiat due to the bankers sidechain swap. meaning your not going to gain anything when $10,000 only buys you a loaf of bread.

the fiat price and bankers fiat games are meaningless, when you start to appreciate what bitcoin is really about

agreed with all you said, but to highlight one part.

but there is money to be made in manipulating the supply.
pump and dumpers make profits, while outsiders not involved can only react to the drama/crises such pump and dumps cause. but not benefit from it because they are on the outside.

bankers will profit from their hyperledger sidechains. its why they are doing it, they are the casino. and like gambling.. the house always wins

But it doesn't answer my question. 
If the bitcoin holders are in panic, why would they buy another cryptocurrency instead of "safe" fiat?
What would be the difference?



That answers it more clearly and I have to admit that it makes sense.
I saw on it only from the economic point of view, but you're right, that it could be successful because of its better technology.