My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
Governments already have CBDC and they will be much more amenable to rejecting cryptocurrencies that are beyond their reach. Because governments don't want to take further risks when control is not with them. The government owns the banks and the position of the banks is not to like cryptocurrencies at all which always makes them lose the profits from the taxes created. The habit of escaping taxes to crypto is the only thing that has until now been the reason why CBDC was created. 
Topic: The implications of cryptocurrency on the global economy - page 2. (Read 343 times)
The use of cryptocurrency is has increase over the years as many people now see crypto as an alternative to the fiat. My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
The basic effect that will be very visible when the government legalizes cryptocurrency as any means of payment in the country is the lack of bank customers who save money in banks because they can already save some money in cryptocurrency in their respective wallets. So that the Bank can no longer play large amounts of money because it has experienced a shortage of deposits from the customer. Another thing that can happen is that it is difficult to develop the value of existing global currencies such as USD and also others when everyone is already using cryptocurrency for everything.but the central government will not let cryptocurrencies rule everything. Currently, cryptocurrencies are subject to various regulations from each country's government and even impose income taxes on cryptocurrency users. so in real it will not happen completely, crypto is still under the shadow of the government and will not be able to escape. When cryptocurrencies dominate all sectors, they also cannot regulate the global economy, and the risks posed by cryptocurrencies will also be dangerous for those who do not understand and do not understand how to use cryptocurrencies.
The use of cryptocurrency is has increase over the years as many people now see crypto as an alternative to the fiat. My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
The basic effect that will be very visible when the government legalizes cryptocurrency as any means of payment in the country is the lack of bank customers who save money in banks because they can already save some money in cryptocurrency in their respective wallets. So that the Bank can no longer play large amounts of money because it has experienced a shortage of deposits from the customer. Another thing that can happen is that it is difficult to develop the value of existing global currencies such as USD and also others when everyone is already using cryptocurrency for everything.
Deeply doubt that would happen
It's more than payment
and much bigger for mainstream adoption
It's more than payment
and much bigger for mainstream adoption
I really doubt that all governments worldwide take the initiative to incorporate cryptocurrencies as a means of payment, even though it would be a fairly radical and significant change in the world economy, it would be difficult to see this reality... It is true that some countries in the world have opted for introduce Bitcon as a legitimate currency, but if we talk about globalization it will not end up happening, at least not for now. The user "logfiles" mentioned it before and I reaffirm the comment of
Since this is if several governments are beginning to use and consider CBDCs as a good strategy, if you do not know what a CBDC is, here is a link for you to read and know what I mean.
Link: https://acortar.link/cfe4pI
Quote
Maybe what we shall see in most counties are Central Bank Digital Currencies (CBDCs)
Since this is if several governments are beginning to use and consider CBDCs as a good strategy, if you do not know what a CBDC is, here is a link for you to read and know what I mean.
Link: https://acortar.link/cfe4pI
I will be assuming that you are talking about legalization of bitcoin and other shitcoins in today's economic world.
Economy will become more globalized. It will be easier to perform cross-border transactions and trades. Which will create an influx of new investments. This could go either way, but if such cross-border investments with cryptos are done in a controlled and regulated manner then it will be very positive.
On a domestic level, monetary policies will become redundant due to free flowing nature and volatility of cryptos. It will have a huge impact on everything. So it's not going to happen unless the state can at least control the supply of cryptos and have an influence over its price. These two conditions have to be met, before they even think about legalizing it.
A stable implementation of cryptocurrency will increase the participation. Which means more money to invest in new businesses, which means more jobs, which means more spending, which means booming economy
This is an ideal case, i.e. the cryptos were integrated in a very controlled fashion into the system and citizens are smart enough to access its potential. Otherwise it will be a disaster.
Economy will become more globalized. It will be easier to perform cross-border transactions and trades. Which will create an influx of new investments. This could go either way, but if such cross-border investments with cryptos are done in a controlled and regulated manner then it will be very positive.
On a domestic level, monetary policies will become redundant due to free flowing nature and volatility of cryptos. It will have a huge impact on everything. So it's not going to happen unless the state can at least control the supply of cryptos and have an influence over its price. These two conditions have to be met, before they even think about legalizing it.
A stable implementation of cryptocurrency will increase the participation. Which means more money to invest in new businesses, which means more jobs, which means more spending, which means booming economy
This is an ideal case, i.e. the cryptos were integrated in a very controlled fashion into the system and citizens are smart enough to access its potential. Otherwise it will be a disaster.
Do mean to say how will bitcoin impact global economy if it gets global adoption. If that be your question then it is pretty much simple there will be improved economy and decline in inflation rate because the government won't have access to prints more coins and since the coin in circulation is been regulated by consensus algorithm it means we will definitely have improved economy. But why this will never happen because the government will never allow you be your own bank.
My question is if the government legalize cryptocurrencies are means of payment,
Only a few Governments may legalize crypto, like you saw the case with El Salvador. So many Government will not Legalize cryptocurrencies for obvious reasons. One of them is that they have no control over the cryptocurrencies like Bitcoin.Maybe what we shall see in most counties are Central Bank Digital Currencies (CBDCs)
The global economy will leave the hands of the government to the hands of cryptocurrency market makers I think it's the reason the government won't legalize cryptocurrency. In addition the block chain technology will help many institutions like the health sectors keep record, they'll be more job opportunities available for the skilled. Many will get employed without degree. So except for the bullish and bearish state of cryptocurrency, the blockchain network if adopted by the world it'll boost the global economy.
https://www.pelicoin.com/blog/what-is-the-economic-impact-of-cryptocurrency
https://www.pelicoin.com/blog/what-is-the-economic-impact-of-cryptocurrency
The use of cryptocurrency is has increase over the years as many people now see crypto as an alternative to the fiat. My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
Jump to: