Topic: Maybe Not Possible For Governments To Get Off Fiat?? (Read 430 times)

for a country to carry out such changes, it will definitely be difficult, because it will definitely cause debate from various parties. But if any country dares to do such an act, and its calculations are ripe, perhaps its actions can be calculated. But it is indeed quite difficult, when talking about replacing a country's world currency reserves, it will definitely be difficult. Because it is certain that a country that dominates its currency, as the world's currency reserve, will definitely not remain silent. So a country that is going to make major changes in terms of currency, which is related to world currency reserves, must certainly be prepared for the risks it has to face.

As others have already mentioned, there isn't necessarily a need for countries to drop fiat from their reserves completely. They're generally only interested in having stable assets, so the highly inflating currencies are the first to be dropped in place for other more stable assets. USD isn't attractive with a 40 year inflation high, so countries that had USD in reserves didn't completely rid the currency, only reduced its holdings.


This isn't necessarily the case because most commerce transactions are between private parties in the U.S. and Canada if I'm not mistaken. The government can reduce USD from their reserves and it wouldn't be too consequential short term.

I also think of this as America have a great and strong hold to developing countries that they would not want to abandon the USD since more with be at stake with regards to the economy. Also, the long term effect of how the world see the image of America have a great impact on to how most countries see them which is a country that has strong economy and a country that really helps other country improving their economy. But, as what I see today, the image of America is starting to change. Let's see how would these affect them but I definitely see that these would have a negative effect on their image. But for now, it is indeed that America have a strong relationship with major economy in the world and these countries would never want to abandon USD anytime soon as they would want to keep a healthy relationship with these country.

At least for now, not all governments can get off fiat, apart from the developing AI and other technologies that need to be put in place, the trading between already importing countries will still stand with their respective currency

Anything is possible, if they move from Shekle to Gold and now Fiat, they can get out of Fiat, what Government is all about is power and control and I expect them to try to hold on to this power whatever it takes. China is doing it and since most countries including the Western countries are shifting towards authoritarian states they will likely buy into the China model with time. People need to prepare for what is coming

I think, not every country has an ambition to become a world leader. For example, it's clear that Nordic countries prefer peaceful life with high quality of life and prefer to stay on their own while it's clear that the USA, China and probably Germany (and probably France with it) in the name of EU, wants to become a world leader. I would say that Russia definitely wants it but it has zero capability to achieve that goal, doesn't matter how much it wants, it has zero capability.

At the moment, it's almost impossible to make America give up on keeping it's currency as a dominant one. It's not training its NATO troops to make a show, there is a reason, there is a plan.

America makes it very hard or almost impossible for small countries to abandon USD. It has a huge influence in every country and has USAID programs all around the world. If you are not a lazy person and work hard, quality of life in America is great. People in poor countries work hard but rarely earn. So, America tells people of these countries: We are here to help you, to develop your countries, to improve your quality of life. If the government of any of these countries abandons USD, then America will tell their people that their government is corrupt, is doing bad for them, for their children, etc. One may laugh but this is reality, they gain influence in poor countries. Also, one thing that I noticed during my travel in some poor countries is that these people trust USD, Euro and GBP more than their own currencies. I've even heard from some taxi drivers that they save their savings in USD because their local currency has high inflation, etc. People even calculate the value of their apartments, cars and other things in USD instead of national currency.

America has a great relationship with Europe too, which is a huge economy and very developed union. America has great relationship with Canada, Australia, New Zealand, Japan, South Korea. These countries aren't going to abandon USD because things are going well for them with this relationship. The Chinese-USA economy is pretty linked too. So, now think yourself, is it easy to abandon USD? Countries where USA has placed its troops and nuclear weapons, are really gonna abandon USD? If they abandon it, what will be an alternative? It won't be crypto, at least for now! But this will happen, it's only a matter of time, it may be a smooth process, not an instant one because in case it's instant, I already said, America has roots very deep, there is no way they will let this happen instantly. And long-term, it will happen because nothing lasts forever.

Why do you think that in Ukraine they do not decide their own fate? Let me remind you that when eight Russian armies with a total strength of about 200 thousand people with the best armored formations invaded Ukraine from three sides in February last year, the US and Europe were convinced that Ukraine would not last even one week. Therefore, they offered President Zelensky and his government an evacuation plane, but received the answer that they needed weapons, not evacuation from Ukraine. On the very first day, six Russian fighters were shot down over Kiev in ten minutes, and since then they have not flown over Kiev anymore. Two months later, in April, the Russians were forced to hastily withdraw the remnants of their battered troops from the central and northern parts of Ukraine, so as not to be completely defeated.

During the two months of the war, as of April 24, 2022, Russia lost about 22 thousand of its military personnel killed, 873 tanks, 2238 armored vehicles, 179 aircraft, 154 helicopters, 403 artillery systems, 147 MLRS, 69 air defense systems, 1557 various vehicles were destroyed. technology.

Only when the West realized that Ukraine was capable of defeating the Russian "Second Army of the World" with sufficient help, they began to help Ukraine. But tanks and armored vehicles began to arrive in Ukraine in significant quantities only at the beginning of this year, that is, after almost a year of the war. Until that time, Russia was the best sponsor of military equipment. The Ukrainians alone took more than 700 tanks from the Russians, which is much more than all the current allies helped her.

Even a few months ago, the United States advised Ukraine to move away from Bakhmut so that the Armed Forces of Ukraine would not be surrounded. But the small town of Bakhmut in eastern Ukraine, which the Russians have been attacking since May last year, is still holding out. Therefore, Ukraine makes its own decisions, but listens to the opinion of its allies.

By the way, European countries, especially the Baltic countries and Poland, began to actively help Ukraine after the Kremlin's aggressive statements in their direction, and they realized that in Russia they would not stop at Ukraine alone.

Bitcoin and other cryptocurrencies are suitable for coexistence alongside fiat currency in every country. Nonetheless, what about some of these legislators and leaders? They simply cannot see it. They are blind to the many advantages of decentralized cash because they fear losing control. However, that won't deter us! Taking charge of our financial future necessitates entering the exciting realm of cryptocurrency.

Envision a world where Bitcoin allows instant, secure international money transfers. The days of waiting for wire transfers and being paranoid about identity theft are over. And if we're all well-informed, we can put Bitcoin and other cryptocurrencies to use in ways that benefit everyone. Tremendous!

It's my opinion that the decision to move away from fiat will depend on a variety of factors, including economic conditions, technological capabilities, and political will. While geopolitical factors and power dynamics can play a role in a government's reluctance to abandon fiat currency, there are also practical considerations to consider because currencies fiat provides a level of stability and predictability that many governments might desire.

That's an interesting question. Getting off fiat completely is probably impossible, unless it's done globally. That's because there are different aspects of using money: legal tender, main reserve currency(ies), and external affairs currencies (trade, financial aid). So suppose your country decides to take a risk and adopt Bitcoin as a legal tender, while also getting rid of the local fiat that used to be legal tender. There's also a reserve currency thing to deal with, as the op pointed out, and it's a political choice in  many ways which currencies to have. So yeah, it's problematic to get rid of the USD like that, it's a radical unfriendly decision. But there's also a third, totally practical aspect, which is the currency you use to pay for international goods (and a particular fiat currency can be requested by the seller here), as well as the currency in which you borrow money from the EU, the IMF or some other big institution, which isn't going to be in Bitcoin either.

There is a difference between participating while wanting it, and participating because you have to. UK sent soldiers to Iraq and I believe a bit to Afghanistan as well? Not entirely sure about Afghanistan but I know for sure that they went to war in Iraq as well.

Look at what happened, everyone remembers USA very clearly and everyone thinks they did, but people from UK, Poland, Italy Spain and many other nations all sent soldiers and yet nobody talks about that. So if you do not want to join, and half-heartedly do something then even if you send soldiers to kill people, sometimes even innocent ones, you do not seen the evil person, the one that WANTS to attack is the real evil and that is what USA became when they did that.

But unfortunately, that will never happen for now and the government will still be thinking about the Decentralized nature, not having full control.
The government can only manipulate and regulate according to what they want, but cannot fully regulate.

The statement about Bitcoin possibly being the perfect money for Bitcoin, seems too much.
Bitcoin is a scary thing for some governments that can be said to be corrupt, it will reveal everything that is not transparent.
It could be a solution but it could also backfire on them (the government).

Fiat is still the main one and Bitcoin is just an optional payment that can be chosen or left.

To put it in a more sensible, the government are against Bitcoin due to their inability to. control Bitcoin just as their control the fiat financial systems, this is the one a and major reason why the government are perceived as anti-Bitcoin and this has been the only reason why government make public pronouncement against Bitcoin but the truth is most government officials have Bitcoin as an asset and even the united state government owns a large amount of Bitcoin mostly the ones they're siezed as precedes pf crimes.

I think what the government should do instead of banning Bitcoin is to make room for Bitcoin to exist in their financial system as a decentralized alternative but citizens should be warned of the risk associated with Bitcoin due to its high volatility.

Good point made , and thank you for taking your time to really expanciate and articulate on the matter , you are right on everything you said, the government know clearly the potentials Bitcoin ,and all other cryptocurrencies possess..

Can I tell you something?

The government are not against bitcoin In real sense, bitcoin is a perfect money for the government as well, but what they(the government) are really against is the trustless nature, decentralized nature of bitcoin and cryptocurrencies, like you said, the government are in total control of fiat, if it was possible for them to gain total control over bitcoin and its network the same way they have control over fiat, I tell you that by now, bitcoin would have become a legal tender in almost every country of the world.

When your whole economy is tied with a currency, there's little to no possibility of you outright removing yourself from said currency. Plus all current economic situation and paradigms are set in the fiat standard, so an upheaval of the system is not only unnecessary, but is severely detrimental to that country's whole econonomy.

Picture this, you're in a classroom setting, where everyone's expected to use an inexpensive notebook, only for one day be told that you'll be ditching the notebook in exchange for "a more advanced tablet pc", with you and each and everyone of your classmates shouldering the costs, not only will you be livid, you'd probably gonna end up broke too.

Your point is well understood and I agree with you on this, Fiat and bitcoin can still be used in all the countries today if the government decide to do away with the political hatred and decisions they have seen in Bitcoin and other cryptocurrencies all over the world today. The only reason why the government has failed to see or accept Bitcoin and other cryptocurrencies in the world is because of the rate of corrupt leaders and political occupiers that we have in the whole world today, of course we know that even in some countries where bitcoin has been accepted as legal tender they still have and make use of their local fiat currency and things have been moving on smoothly there but other countries have failed to accept cryptocurrency because of the level of corruption they have in the country they know that bitcoin will make their citizen especially the youth to have financial freedom and they will have the ability to control their money without interference or monitoring of the government but the government have seen fiat as the only way they can use to track every individual they wish to trap for example an individual that don't want to obey them they always use the Fiat currency to trap the person.They have seen bitcoin and cryptocurrency as evil because they think that people use it to do fraudulent activities but looking at everything it is the fiat  that has been used to do so many damages all over the countries  but here they thy see bitcoin as the only evil that's why they cannot accept cryptocurrency as a ligal tender all over the world but I believe that with time they will come to understand that fiat can still be in existence in a country where also Bitcoin is existing too and the economy of the country can still be doing very well.

I also believe that the EU countries do not want this war to happen and do not want to participate because they know that it will not bring any benefit. But the problem is that they are both close allies and vassals of the US, so they cannot stand by and watch the US being attacked by its opponents. They will be drawn into the war, but it's more of a compulsion, more reluctance than actually wanting to go to war.
Like when the war between Russia and Ukraine broke out, they did not initially intend to support the war by sending weapons to Ukraine, but they were unable to resist or disobey the US. They like Ukraine, do not have the right to decide their own fate.

I think EU just doesn't want to participate in this situation, they are happy with what they have and do not want to be bothered all that much. When you look at all the "financial war" between nations, sure you can see Russia, China, USA and even can consider EU to be part of it but not so much, which means that euro will not be as strong because they do not want to be part of any war. Sure they participated in Ukraine one, but that is because it is a real war and not a financial one only.

I think BRICS could try their best, and they could end up not using dollar between each other, which would be a great benefit to them, but that doesn't change the fact that it would be hard for them to continue down that path as well, there will be some challenges.

It is possible if only the government have control over that too. Otherwise, they will never replace the fiat currency. But in theory, it is very much possible. We need a new system to replace the fiat currency. Let's think that as crypto, for example. We can use both of them at the same time. Keeping them both side by side and using at the same time will give us much more freedom to learn about the new thing and adapt to it in a better way, rather than throwing out something and completely replacing it overnight.
But no such thing is needed in the eye of the governments, and they will never approve something decentralized which will harm their centralized system.

I think it is possible to change their financial system but this decision has consequences because any move away from fiat currency will require careful planning and cooperation between countries otherwise potential conflicts and negative impacts on trade are very vulnerable, weighing the potential benefits and disadvantages of these changes and considering the long-term implications for the country and its citizens I think it is better for the level of confidence and stability in the alternative financial system.