Topic: How do cryptocurrencies affect Global Economy? - page 7. (Read 1172 times)

No one can prevent any country from issuing its own version of the digital currency. However, given that this could reduce the power of the major countries over these economies, it is assumed that a defect will occur in the current system.
A poor country suffering from economic pressures cannot issue a paper currency except according to certain conditions and formulas, while it can issue an electronic currency without the need for any intervention, and it is sufficient to have a stock cover to give the currency its value. The large countries that control the global financial markets realize the danger if the Venezuelan experience is generalized.

Creating your own CBDC as a nation and backing it by any asset you wish or running it on any system does not impact the cryotocurrency market. It is just a way for governments to try and benefit from the blockchain technology.
Nigeria also created theirs during the peak of the Bitcoin revolution and it has been a failure so far, while Bitcoin continues to grow in popularity.

Not in the near future. Bitcoin is still a budding technology and as an alternative currency for nt weaken any of the major currencies. In the distant future when it's target market continues to grow and global adoption as well, it could become more dominant.

If we were to compare the total value of all cryptocurrencies, then according to the CMC market cap, it would currently amount to a little more than $800 billion - and for comparison, the US defense budget for last year was about $780 billion. I think that this speaks more than enough about the importance of crypto-currencies on the global economy, and the so-called CDBC should not be mixed in, because apart from the digital aspect, there is nothing different about it from money as it exists today.

As for the petro-dollar, I think that project is far from any success, and I doubt that anyone will copy it, but China and its CBDC are a different story because they are forcing it without asking the opinion of their residents. In some further development, that currency could be accepted by some other countries that are politically and economically close to them, but it is more likely that it will still serve them for even greater control over their residents with all the measures they are already implementing.

Central banks are based on producing fiat money within controls and according to a corresponding stock of metals such as gold, or a reserve of major currencies such as the US dollar.

As for encrypted currencies, they are not subject to any controls of any kind and are produced by individuals (mining). However, some countries that are subject to economic crisis's or international sanctions have exploited these digital currencies and used them in their favor within controls ; The Venezuelan government issued a central digital currency called "Petro" and linked its price to the price of a barrel of local oil which means linked it to oil and precious metals. Also, China has also issued the Chinese yuan, which is a digital currency different from the decentralized blockchain.

Is it true that cryptocurrencies will weaken the global financial system? That system which is managed by countries with the strongest economies with their currencies that has gained wide acceptance to be traded in financial markets all over the world.

This would have an impact on the global economy and the entry of digital currencies would weaken these countries from their control over the economy if other countries start to follow the same approach as the Venezuelan government, as the currency of these dominant countries used in commercial transactions and which has been linked to the prices of gold and precious metals will face Digital currencies whose printing and issuance are not controlled by any official entity.