Topic: In the future, will fiat currencies be necessary in the world? - page 38. (Read 35815 times)

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

Ofcourse it is very important for now. Knowing the fact that not all the people can access new technology like those people who are on the rural areas which don't have the means to have new technology materials.

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

yes just like the gold times during the old days, remember gold is valuable up to now and let us not forget the fact that there is still a lot of countries or part of countries that don't have electricity.

Fiat currencies are important to every country and the whole world. Not all areas around the globe can enjoy using crypto as a medium of exchange since not all are countries are having advanced technologies. Cryptocurrencies can only be accessed if have the electricity and internet connections. So to those areas having none, then crypto is useless unlike fiat money as long as you have it in your hands with or with electricity and internet connections you can use it anytime and anywhere.

Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.

A lot of good points. Many have said that fiat is necessary now. Well, obviously, the question was whether fiat would be necessary in the future.


Fiat has not been tested for a long period of time, maybe 75 years total. Before that it was gold or gold-backed currencies.


Volatility is not an issue, the volatility has been going down every year and will continue to do so.


This is a good point.

No, all economies are not one, because governments will have different overall tax rates, will tax different things (income tax vs. corporate tax vs. sales tax), have different deductions, different agreements with each other for mutual taxation, will decide to spend the money on different purposes, etc.


I don't see that any of those tools work to manage economies. By changing interest rates and the money supply, ostensibly to "stimulate" the economy, governments have created massive bubbles with catastrophic results. The thinking is that consumer demand for products needs to be increased during a recession. But most of the products people buy are junked within a few years and the individual has nothing to show for it, while savings rates are very low. It is nothing more than a transfer of wealth from poor/middle-class to corporations. How does that benefit the economy? Also the money that is spent to "stimulate" the economy is money that could have been spent elsewhere - eg, infrastructure, education. So I would say that direct money spent has had the effect of enervating the economy by diverting it from more productive use.


At least 2 good points - difficulty in in-person, small, retail transactions, and internet connectivity issues. But even these are potentially solvable in the future. The technology to collect crypto could become so cheap that even small retailers and stalls could accept crypto, also internet connectivity improves all the time, maybe there will even be backup internet connections available at some point. But even so, it is good to have fiat as a backup currency.

Of course it would still be necessary in the world. From the first place, for how many decades, we are using fiats for day to day transactions. You cannot eliminate that right away even though the possibilities of crypto in economy is high. There are benefits of crypto and the same with fiat. We can use both of them for our everyday life.