Topic: Maybe Not Possible For Governments To Get Off Fiat?? - page 3. (Read 426 times)

With the existence of BRICS nations gives the other countries to actually have an alternative to where they wanna trade. And then there's also cryptocurrency as an alternative for the citizen for which the political sanctions of powerful countries may not be as effective as before.

What could happen though is always a regime change for leaders who are not agreeing to the bloc. The consequences are quite devastating to the economy and when a country is divided, it will have chaos like what is happening in France these days as Macron visits China.

countries for different reasons want their own currency.
EG america wants to be a super power currency where its $10(min wage) is upto 100x of other countries min wage value. so that it can make things 100x cheaper else where import it and still profit.

if all countries had a one world currency where everyone got paid the same min wage amount for their hours. then imports/exports would vanish down from 50% to 5% where only exotic products would be imported that couldnt be grown natively

also financial firms would not be able to currency trade if there was one master currency. so it would affect all countries financial services that offer forex/international trade

countries are not preparing to move to a single currency they are actually dividing away from US IMF controlled reserve swaps and trying market paring trades direct..

but with that all said they wont want to move to a citizen controlled currency where tax becomes voluntary. they will just use CBDC to make accounting/transfer more automated/secure/trusted where having dozens of "miners" scattered in different cities avoids financial blackouts. but still having government financial office in-charge of policy

its not the official acronym. but i always (jokingly) thought of FIAT as Fractionally Insured And Faxed
and that system is not going to change even with a CBDC

If there are any changes in the country's financial system there could be an outcome like having an effect on international trade and commerce.
But that's unlikely to happen since we have a government that controls every financial flow and we know that the supply and demand of fiat currencies can be manipulated by governments and central banks, which can lead to inflation, deflation, or even currency devaluation.  So it's impossible they will get off fiat that is under their control.

That's why there's a decentralized currency raised.
Like Bitcoin, that has the potential to disrupt traditional financial systems and provide individuals with more control over their finances.  So possible that we will see new forms of currency emerge that we can't even imagine today.  That's why we remain open to new ideas and opportunities that we work towards creating a financial system that's transparent, fair, and accessible to everyone.

Governments are not the ones who decide on financial policies, so change is almost impossible if banks and major financial institutions remain the ones that impose those policies. Currently the dollar is the dominant currency in the world. It derives that dominance not only from its value, but from the parties benefiting from it (banks).
Since it is not possible to change a country in isolation from the rest of the countries in the international sense due to the economic interdependence, it is hoped that the adoption of the new systems (Bitcoin and Crypto) will occur in parallel with the fiat system without one canceling the other.

Any country can move to cashless society but I think there is still a lot of time left for it to happen. Cashless society does not mean that fiat currency will end completely. And by cashless society it would also be wrong to imply that it will be cryptocurrency only.
Every government wants a system where the government can control anything it wants so if we view this in this way then it will never gonna fully happening. And I think fiat currency is still important for political action and increasing connectivity with the global economy, it's not going to end easily. However, it can be expected that in the future, 100 years or less, the economy may become dependent on crypto currency.

In matters, like this, I've always made my point clear, and that is the fact that bitcoin and fiat can co-exist if the government want it to, it is that simple, one doesn't have to die and completely wiped out for the other to dominate, no, fiat can still be in circulation while bitcoin is also in circulation.
Having some options to choose between one thing and the other is always very exciting, fiat can still be in circulation for the sake of our aged mothers and fathers who did not attend school and possibly lack the technical know how to really transact in bitcoin.

And also, likewise, bitcoin payments can always be there for those of us who are already in the game.

Fiat is not the problem the system controlling the fist is the problem, I was reading an economics-related journal, and a very pointing thing was mentioned there that Fiat is not trapping in nature but the state and governments on the state make them trapping. The writer said that if you really want to survive with the fiat then eliminate the control of the government from the demand and supply system of the fiat. This is the only way to follow up but I don't think from the monetary policies and power of government it is gonna ever happen.

Every Government creates a worse condition compared to the previous one and this cycle is repeating for years and years until now, Now the e circumstances are people are not willing to belive on the system.

In the coming years, it is possible that a new form of fiat currency will emerge, but it is unlikely that it will completely replace existing fiat currencies. This is because governments need centralized currency to maintain control over the financial system, whether it is in the form of digital or paper money. Without centralized currency, decentralized forms of currency could potentially overtake the existing power structure. Therefore, it is important to acknowledge that a world without fiat currency is unlikely, even though many of us appreciate the benefits of decentralized options such as Bitcoin.

governments are not itching to ditch fiat. they just are itching to ditch other countries controlling them. where they can have their own currency.

EG el salvador had no proper currency of its own it used USD thus it wanted an established currency but without the ramifications of trading US for say europe or china. so it chose bitcoin

however el salvador would like its own peso currency domestically too.. some day

as for the USD being world reserve currency. well thats for the member groups of the IMF
and with many countries wanting to leave the IMF or sanctioned out already, they instead want to trade using the BIS settlement system direct. thats what the BRICS are doing right now china russia south america africa and even middle east want to use the BIS platform using their own stablecoins(CDBC's) that bridge together in a hyperledger at the BIS using the BIS as the exchange

though the CBDC's wont be finite/limited supply. and wont be as freedom associated as crypto. they will be slightly different than current fiat. (only slightly from PoV of users)

these CBDC will still obey countries financial policies. so dont expect anything very different here. its just fiat2.0 with less central currency reserve measured in 1 super currency..
but instead of US IMF controlling them all.. the BIS will be the main forex exchange for multiple countries currencies to pair against each other without reliance on the dollar as the exclusive/expressive value indicator of each

ofcourse due to the population dominance (billion+ pop per country) china, india, africa and south america will all challenge each other as the next gen super power, so await for that to play out a decade after they form their partnerships to escape the IMF via moving trades to the BIS

but in the end its still going to be countries having their own currencies. but as CBDC instead of current system

They don't want to remove fiat, they want CBDC. There's even a recent interview with an analyst Lynette Zang, you can google it, who said that the banking crisis was created to scare people and make them eager to accept CBDCs. That's what it's all about. Of course it would be difficult for governments to drop fiat completely, but CBDCs are fiat, just much easier to create, track and control.

Just add 2 and 2.
For a long time they've been reducing fiat payments. In the EU a couple years ago you were able to make 20k EUR bank transfers and cash payments without any problems. Nowadays, you can't make cash transactions over 10k EUR, you have daily ATM withdrawal limits (usually 250 EUR) and there's a 1lk EUR limit on crypto payments. There's also 1k EUR limit on no KYC exchanges in the EU.
All of it has been done in the last 2 years.

Ask yourselves why they're doing it so fast. What's their problem? The answer is World Economic Forum is pushing for CBDC and countries like France, Sweden, Netherlands, Canada and many more are happy to comply ASAP, which is why in Sweden you have extreme limits on cash payments in Sweden right now.

Reading your brain-tickling comment, I can't help but notice that our financial system's transformation hurdles aren't just technical – they're deeply entwined with geopolitical power plays. Sure, the US dollar's reserve currency dominance poses a major roadblock for nations itching to ditch fiat. The potential fallout, like trade wars and geopolitical strife, can be pretty scary, to say the least.

However, as our world shrinks and globalization intensifies, the call for a united financial system will grow louder. Like you pointed out, we're closing in, and a worldwide currency feels inevitable down the line. This shift won't be smooth sailing, with significant roadblocks on the way. But armed with thorough planning, cooperation, and a dose of adaptability, we can strive for a financial future that's transparent, safe, and fair to all.

Though the thought of abandoning fiat may make you break a sweat, let's grab the opportunity to shape a superior tomorrow. United in our efforts, we can nurture a world that's just, sustainable, and flourishing for everyone.

That’s the misconception many people have about bitcoin they actually think that its usage as a legal tender will make them not to use other currencies like the fiat system again. This is wrong because bitcoin is only here to act as an alternative for fiat currency. So if your country Canada makes it a legal tender that doesn’t stops them from using other currencies like the US Dollar to do transactions with other countries that do not allow the use of bitcoin.

The Saudi government is currently working on accepting gold as a means of payment for their international transactions also countries like China Russia and fellow BrICs have also agreed on using yuan currency for their transactions but this doesn’t stops them from using the Dollar currency. It simply means they are looking at way where they would limit the supremacy of the dollar and also the political influence of the US.

IMHO, this is more of Economics topic and not a Bitcoin Discussion.

They won't drop the fiat system because that's the standard of all countries in the world. They have no other means of exchange but through that unless they all agree that they can receive trades through gold or silver.

But then, in today's modern world, most of these countries are starting to think who should be at the top and who should still be at the top and that's being decided now. And everything is still in paper right now unless the changes has come.

It is not about intimidation, if any country wants to change either their financial system or their reserve currency, they can do so and must be ready for the implication on their economy, if a country wants to stop using fiat, what then do they change to, BTC? It was created to be a second choice option that works without any third party, the central banks and finance officials have to regulate whatever currency that is in use in any country, what would happen if BTC is their main currency, they can't regulate it, or print and issue it, how do they ensure it circulates in the country, would the government go into mining?
If the USD stops being the world's reserve currency, its replacement cannot be BTC, how do governments make BTC their reserve currency and use it for international trade, it is volatile and decentralized. Euro can be a replacement, the Chinese Renminbi or even gold, but i don't believe a decentralized currency is in the running.

I think it's possible for governments to make a transition from using fiat currency, but it would be such a big mission that would require a complete overhaul of the financial system, like for example taking of the USD for bitcoin would be insane but I don't think that would be possible anytime soon.

Fiat money has been the backbone of the international economies for centuries now and it's deeply ingrained in our financial system and a way of life. However with this rise of crypto like Bitcoin, some governments and financials institutions are exploring the possibility of this huge transition from using fiat, as far as I know, El salvador did such a good starting by accepting Bitcoin as a local currency and I hope we will see many countries in the future accept it too.

Of course, it could get to the level of economic and even political intimidation. Every country wants its currency to become dominant in the global banking and trading sectors. The US will not want the Chinese Yaun to overtake the dollar so it will do all within its power to ensure the Dollar remains number one even if it will take diplomacy, threats, intimidation, and to extreme war.

But it will be stupid for any nation to ditch the dollars without necessary preparation and planning. It will be suicidal for any nation that depends solely on imports from the US or rely on income from export from the nation to consider abandoning the dollar. Before such policy will be announced there should be a gradual diversification and restructuring of the nation's economy so that it could be able to withstand any economic sanctions or embargoes that might be placed by the US because of the ditching of the dollars. It has been assumed in some quarters that Russia prepared for this invasion which was why their economy is to a large extent sanction-proof.

The politics of which currency is used for global trade is a long standing one and would be for many more years. USD is currently the most popular for international trades, it has previously been GBP and in the future it could be a new currency, possible from an Asian country. A nation cannot be intimidated into using the dollar. In global trade, countries depend on each other for goods and services.

Bitcoin does not play a part in this politics; for one it does not need fiat to be abandoned and can work along side it, it also does not need government recognition for it to be put to practical use globally.

Maybe Not Possible For Governments To Get Off Fiat??

 Thinking that with the USA dollar as the main reserve currency, That would make it very hard for other countries to get off the USA dollar and other fiat systems if they wanted to.
Such as moving to a money system that has more limited supply.

More less to drop a fiat system altogether for the international business aspect for that countries exports and imports.

There would be or could be in my opinion consequences such as a possible war break out with in some case the USA before.
Now with China taking over some countries. If those countries dropped the Yuan for business, there would be serious consequences coming down from that,

For example I am in Canada. If our country here stopped the USA dollar altogether for the trade transaction between USA and Canada there be serious consequences, even if my country Canada the government dropped the Canadian dollar or any fiat system in the country and moved to a new system, like BTC or some non fiat money system on the national system. There would be very serious sequences coming back from other governments in other countries.

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?