"could be discouraging" is a correct and usable phrase in written English.
You can use it to indicate that something is likely to have a negative or discouraging effect. For example: The long commute to work every day could be discouraging for some people.
That could be discouraging for a young player; all three Yankees are All-Stars.
Howard Dean is putting all his eggs in the Wisconsin basket, but a poor showing in Maine, a state in his home region, could be discouraging.
There has been speculation that having three former CEOs on the board (Dorsey, Costolo and Ev Williams) could be discouraging suitable candidates from the job.
One of the world's largest engineering institutions is warning against gender stereotyping of toys in the run-up to Christmas amid concern it could be discouraging girls from pursuing a career in engineering and technology.
That could be discouraging for those who hoped a blah year would lead to a booming one.
But on the flip side, getting passed on Crown is going to be a lot more of an obvious "no," which could be discouraging.
Such a man on the fence about seeking treatment could be discouraged by the prospect of talking to a woman.
But many liberal legal experts fear that employees could be discouraged from exercising their rights to free speech.
Otherwise, the government said, witnesses could be discouraged from speaking candidly before grand juries in the future.
Some might face traveling 30 miles each way to school, and could be discouraged from participating in extracurricular activities, she said.
"I don't see how you couldn't be," said Joba Chamberlain, when asked whether he believed the Twins could be discouraged, adding, "At the end of the day we've won the games.
