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.
Fiat state currency will never disappear. There will always be a need for cash and non-cash currency both within and outside each state. A decentralized cryptocurrency cannot be recognized as the main currency in any state. cryptocurrency is not capable by its nature, since it has no relationship with the economy of any state. technologically advanced and high-income countries may still try to get rid of their cash. However, in general, no state will ever give up its national money, since money is an essential attribute of each state.
