Topic: The world that all money have become crypto currencies issued by government (Read 1806 times)

I don't think so. So far it will be regulated, it's price could be pre-determined and not based on the current demand and supply system we are currently witnessing in the crypto space then It is centralized.

it is contrary to decentralization that we are accustomed to embarking on a local official cryptography for governments, but it will be a tremendous innovation that countries can make for their own interests.

I think to make a virtual currency by a country, it must have a reference to determine the value of each of these currencies, or if that is the case, how do they relate to the development of bitcoin?

Venezuela started it with their government-issued virtual currency or called Petro but many considered it as a failure because it is not widely accepted or used by its own people. The plan of other countries to issue their virtual currency in the future will surely many challenges and their no assurance that it will be accepted like the leading cryptocurrencies. Wealthy nations like the US might successfully launch their own crypto when they pegged its price to their own globally used currency, the dollar.

There are both either positive and negative site if it happens so the government will not be able to do anything suddenly and this possibility will not be able to approved by government will be very low if it happens we can definitely accept that but I am thinking it will not happen anytime.

Many states will issue their own centralized cryptocurrency. It will actually be the same national money, only in digital form. They will walk in parallel with the national money of the states and will play a secondary role. They will not replace each other, but various combinations of their joint existence are quite possible. Cryptocurrency is only developing and in the future it is able to give us many new surprises.

Exactly this is not possible at all. The countries around the world will never do it because they all want to preserve their identity and particularly the US would never accept this because of the dominance of the USD.

Besides, there are countries that are developing and they do not want any new thing to disrupt their economies so they are not allowing the technology to take over though they can benefit from it as well.

If the coins are issued by the government, they are most likely not anonymous.Each user will be identified.Total control.

So judging from the merits and demerits you have mentioned, do you think that have cryptocurrency as our main system of exchange would be a good idea? I don’t think so. And by the way, there is no need for you to be mentioning ‘no need to carry to cash’ cause even now I do go out without cash.

My card can serve for any purpose or even my phone cause I do transactions with it making use of bank app or services like PayPal which has my card linked to it. I don’t even think it can stop money laundering.

I think it's a bit funny to see the government try to release a crypto currency, the main idea of crypto currency is decentralised, crypto currency was created to gives freedom to the users, and then the government create a crypto that the function is the same with fiat that full of supervision, its not match with the crypto purpose, there are good side and bad side if crypto being released by the governments, but for sure the crypto released by the government wont be too popular compare to decentralised crypto

It has no idea if any govrnment create crypto currency, if we simply want electro money, then we have here visa/master card, online banking, paypal and so on. We have everything to manage our moneu. The main idea kf crypto is anonimity and decentralisation, it's far from every government because all they want is control on people. Imagine thief gives you gifts to steal much from you in future, it's similar situation.

I think governments can force banks and other financial services to swap their current 'digital fiat' for tokens by simply upgrading their infrastructure, which means that people *probably* won't even notice a difference. In the end, people either use their phone to pay through an app or their NFC enabled debit card. People never had much financial freedom anyway, so they will not see it as a step backwards. If it works, it works.

I'm certain that when we're like 5 years away from now, people will ask themselves why they don't hear much about the blockchain anymore, and why banks haven't implemented it yet, while in reality it has already been implemented silently years ago alread. Think about it, the efficiency gains they book will be kept to themselves, and you still have to pay legacy fees to fill up their pockets.

I think the government dislikes the crypto currency issued by others, and the crypto currency issued by himself is convenient for the government. Government can catch the flow of residents' funds and prevent tax evasion and money laundering.

this possibility can occur, but requires a long time. today many developed countries legalize cryptocurrency, of course other countries will follow their steps, to use crypto, because there must be cooperation between the countries

I this thing is impossible to happen. Because we all know that there are several countries that don't want cryptocurrencies. And they are banning the use of it.

I live in a country where the government has several times stated that very soon the national bank will issue an electronic national coin, which will be in circulation along with fiat. Similar statements were announced by the governments of Sweden, Canada, Japan and several more states. I think that the process of introducing national currencies has already been launched. I do not want to live in a digital society.

Logically it's impossible, what is the use of fiat or local currency if they make a new currency from cryptocurrency?
I think when that happens, might there be chaos ? I think the government won't be able to do that..

Governments can, and most likely they will, issue their own cryptocurrencies, but they can't force all the people to use them. Fortunately, we are not living in North Korea, where that would be possible. Whatever new crypto is issued, Bitcoin is here to stay, and I think most people will prefer using it instead of cryptos issued by their governments. I think people overestimate the power that the governments have over us nowadays. In fact, it is much weaker than it was in 1950s, while many people think the opposite.

Venezuela is the only country I know that really works hard on their crypto currency. I mean there are other places that are doing something similar but not really care about it, just something similar to USDT instead of Petro. Venezuela knows that unless they manage to get their crypto currency valuable their own fiat currency is getting worse and worse every single day hence they will not be in a good situation. Crypto is their only way out.

If the crypto for them becomes a way out and they actually pull of an economical miracle and turn things around making the country better for the citizens and go back to at least mediocracy than they will be a proof for all other countries to follow their path and do the same. This will be a huge example of what crypto can bring to the table on a major scale.

Countries and governments issuing their own crypto currency is an obvious political and economic move to rrmain in control of their monetary assets. They wouldn't even need an ICO. They could always back up the coin long enough to be self sustaining and they could even issue perks to anyone who uses it with tax exemptions and what not.

The biggest advantage that I could think of for the government themselves to implement this system would be that they would have a much stronger grasp over the economy, as they would be able to track and manipulate each and every transaction and token/currency that circulates around the blockchain due to the centralized nature of the currency blockchain that they've set up.

Obviously for citizens, all the advantages of cashlessness would apply. Increased convenience, etc. Almost exactly the same as electronic banking, no difference here for the end user.

But you have to ask yourself - is this necessarily something that you'd like to adopt - a centralized cryptocurrency that is issued by the government? Wouldn't that be the same as any other fiat currency, just spawned in a different format? To me, it makes much more sense to hold onto decentralized alternatives than to jump on board national cryptos like the Petro, even if it was issued by a more trustworthy government.

This isn't entirely true. If you want the government to have a good relationship with blockchain or the cryptocurrency industry they must find a way to (legally) bond with them in terms of legislation and regulation. Creating their own state-issued cryptocurrency is really not part of any way of blending in with blockchain as this state issued coins are only based on their personal interest with the market. Just take a look at how the RBI (India's Central Bank) is handling things by removing the competition (exchanges & cryptocurrencies) and limiting the cryptocurrencies allowed in their country just to make way with their own state-issued cryptocurrency, this example of India just shows that they really don't care about the adaption of the market as they are keen on having the whole demand focused on what they are only offering.

I don't really mind if things were to get cashless society but I guess we still need banks and our Governments for us to get our loans and other needs.

I think this is a development trend. In the next two years, many governments will issue their own coins. It is necessary to know that there is a close relationship between the blockchain and the coins. To embrace the blockchain, coins must be set up.

It is true to an extent. I'd think that the central banks and governments will just treat crypto currency as any other currency they could control because I'm pretty surr they won't be issuing an ICO for the whole nation but back it up with the country's value to make the coin stable. This in turn will be in their control of course.

I've heard that many country are making there own cryptocurrency and the fact is they're similar to there fiat currency.

Therefore, the centralized cryptocurrency of individual states will only be an addition to the national money, centralized cryptocurrency can not replace the national money, it simply does not make sense. They will give the national money additional cryptocurrency features. This will be another form of money and we do not yet know how it will take root in society.

Also another plus would be the limitation if we could. Laws change all the time, politics change, hell the people change in the world so it wouldn't be a set on stone type of thing but if lets say there was a set amount of dollar coin for example by the government that would help a lot.

Eventually rich could have all the dollar they want on the earth because the amount is increasing all the time with new prints constantly however if there was an amount that was purely set and not moving any higher than rich people would end up buying stuff and paying for them which would eventually make them go down a tiny bit whereas people who are dead poor would have a chance at survival. Much better option for everyone in the world, having a limited amount of money that's not going up is definitely a great news for poorer people and bad news for the rich.

This has been discussed many times here.A government backed cryto will not ensure any of the freedom, we are now enjoying with bitcoins. That is the core benefit of adopting a decentralized system.

Creating there own currency would be useless since bitcoin has hug demand. Also if you exchange that currency you will surly pay some highly taxes since they would be centralized and government has power to control it price whenever they want.

Slow transaction process can be solved in the future. It is not a problem. The problem is this that crypto is not centralized and most of the governments do not accept cryptocurrency. If they issue crypto of their own it may be devalued because one country will not accept crypto of other country. The best solution is this that all countries accept and legalize bitcoin as their regular currency.

If the Central bank of every country should issue crypto currency which will be controlled by the government at the end of the day it will be contrary to the main reason why crypto currency was originally created for, not minding the fact that such decision may bring about increase in crypto adoption and probably increase its market value. Decentralization is one of the main purpose for crypto currency existence and any thing contrary to that may take us back to where we were before the introduction of Bitcoin and crypto currency in general.

If the international governments will take a foul view on how you do things, maybe you should take another look at yourself and evaluate hwo you do do things in order to get a profit. If that thing is unethical or immoral, it's probably a good idea to question that before you get in too deep and you can still pull yourself back out again in case your anonymity slips or you make a mistake...

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It's kinda the only reason we need governments to get involved so people stop thinking "oh yeah, bitcoin's that thing the people use on the dark web to try to get illegal drugs... pay off a hacker... etc etc".


Hacks of the Bitcoin network and the bitcoin blockchain are in themselves very rare and usually don't affect people unless the yfiddle too much with the rules of how their bitcoin nodes function. If you set up a bitcoin node for a payment system and configured it badly, that's on you, there is no one else liable for the damages and maybe it means that you shouldn't fiddle in areas you don't really understand because you won't get very far (if people are starting out it's probably best to try to learn a bit about the currency in order to avoid having any major hacks happening on your system).
Wallet hacks from viruses are quite common however, most people should try to get some sort of antivirus (And make sure when you update your computer, it gets a signature from the publisher which is checked by the computer to ensure that the software is safe to be used and any damages incurred by it - by malicious intent - are the oweness of the software's creator).

Do you think that cryptocurrency makes the economy chaotic and leads to a breach of financial discipline in it? This statement will be true only if the decentralized cryptocurrency is recognized as the main currency of the state and replaces the national money. Then chaos will indeed begin in the economy, given its high volatility.
If the decentralized cryptocurrency will go along with the national money, it can bring convenience to people and profit to the state.
I also believe that from the centralized cryptocurrency of individual states there will be no harm to another, decentralized cryptocurrency.

I really do not want the government to participate in this market. Because I know that this market is filled with sin and it is part of helping me become richer. Government intervention will make my transactions more difficult and my profits will certainly decrease.

Yeah, the hacking issue is one great problem but it seems developers are now coding "well." I say so because the recent news have beenvoid f hack issues for sometime. It's been a while since i heard of a major hack, kike an exchange but as for personal wallet hacks, they happen each day and that's why we need to be careful.

Merit:
-Encouragement of the government to use cryptocurrency by using mainstream media and social media.
-Lessen until posssible Eradication of poverty by giving people small investment and teach them how to trade.
-Upgraded technological infrastructure.
-All transaction is traced.
-Centralized bank

DeMerit:
-Big funds needed for upgrade and maintenance.

Technology today is getting advanced but still there are people who are much more advanced the "Hackers"

For users:
-Hassle free no fall in line scenario.

You just sounded like you know exactly what would happen in the future. However, I believe at some point, we could end up getting to see this, and it would be an opportunity to bring some level of transparency into system of banking and governance as time goes on.

One way or the other, with the way governments in the countries all over the world are looking at the use case of blockchain technology and how they can benefit from it and for the fact that we are already having few countries proposing it, it would eventually spread.

I think it is hard for the government to offer a separate and exclusive cryptocurrency. It just makes the economy become chaotic and lack financial discipline.

Stable coins had been created already even the Gemini brothers have a stable coin. If governments are going to creating their own, it wouldn't be a crypto. They do have it already you can check it on Forex market. IIf you have noticed it already Forex brokers are also into cryptocurrencies these days, they now offer BTC, ETH adn XRP on their platform.

Not just the banks, but the country in which the blockchain technology is adopted. Nonetheless, it would not really change much if we are referring to decentralization as the centralized aspect is something we most definitely will not stop seeing for now.

However, we have to understand that in cases like this, even with the centralization, there is always a huge transparency which I believe will curb a whole lot of things and most especially when it comes to corruption, but the thing is even at points like this, it totally still depends on the government anyway but one thing I know for sure is that government will never accept decentralization as they always love the control.

Nope, I disagree with you on that. All money is digital The "paper currency" is just a alternative form of payment for the people who struggle with technology.  

Bitcoin and other Crypto currencies will not complement fiat currencies, it will replace it in the near future. The fiat system is due for a upgrade and Bitcoin/Crypto currencies are the alternative solution for that upgrade. 

I think there is a big difference between cryptocurrency and fiat. Fiat is only used for online transactions and cannot be used in local markets as regular currency, while crypto will give us both the facilities of online transactions and worldwide use for our daily needs and financial problems. The presence of crypto in the market will eliminate fiat currency.

The world becomes digital only up to a certain point. It cannot become completely digital and get rid of ordinary paper money. The euphoria of cryptocurrency will soon pass, it will not occupy a very large sector in financial relations. Cryptocurrency, like other types of money, has its advantages and disadvantages. As a result, the cryptocurrency will go along with other types of cash and non-cash money.
Centralized cryptocurrency also can not occupy a dominant value in any state. It will complement the usual money.

We call these coins "GovCoins" and they are the worst idea, ever conceived. We already know governments are manipulating fiat currencies and now people want them to control and manipulate Crypto currencies too? Fiat currencies are being printed and devalued at a astronomical rate, effectively turning it into "toilet paper" money.

Just imagine what will happen, if governments had control over Crypto currencies and were able to change the supply, with a push of a button.  

You know what this is kind of feeling where you are attached to something a lot and eventually you start thinking that it is the only last thing that should be out there in the world. It doesnt work like that mate, central banks may create a crypto currency some day but you know what, they will never ever be able to set up better infra structure than the fiat traditional system. Its you and me who are engaged in the crypto currency but not the whole world. I guess it will take ages to to understand the crypto currency mechanism for most of the generalised people and thus one the time it may just left out as useless currency. Thats not easy to adopt something new so fast, otherwise oil, gold, silver would have been the currency of this world already.

How can you be so certain?

It's not just sectors that need to get in line, it's whole government leaders - those that hold the leadership and those that are in the wings waiting to seize it. Think about the political wrangling that goes on today to just maintain our status quo with a bit of change here and there. It's significant. The mudslinging, the back room deals, the lobbying, the money driven decision making. Then you drop a proposal in the middle of all that which removes the control of the financial system from all of those power brokers - what do you think will happen? It'll be anarchy by the mot powerful, meaning outlawing the use of blockchain technology for cryptocurrency.

Yes, what else would you have expected ? Government will obviously not come up with a decentralized protocol which will probably make them lose all the necessary controls they can have and in that case, what we are just going to end up seeing is the replica of fiat on the blockchain. However, this is something that would really be a whole lot better for the government in the long run when it comes to the cost of having to print paper money, and then going with the blockchain that would even bring about some centralized control and transparency in a way, I believe those are something that would still benefit the country as a whole eventually.

The bank will be stronger than before if it wants to launch a new crypto under the auspices of the local government, centrally it often becomes the pros and cons in the crypto world where each has an advantage that considers and hopes that crypto is always decentralized on the other hand banks always oppose all reasons with security, it is a scheme that has been read because they want global control even though it is complicated to follow lust only with power.

The real question is who is going to use such a coin? The average person doesn't have any need to use a cryptocurrency created by the government, they can use their cash and if they want to use a digital currency they can just use their debit and credit cards, and people like us that have adopted cryptocurrencies have no need to use those coins either because we have bitcoin.

It will happen indeed in the future, but there are many sectors and problems we may want to solve before everyone in this world could ever start using cryptocurrencies.

Well, that is something that is still a mystery for now, but I believe in the long run, this is something we will get to start seeing gradually with government and central banks utilizing the blockchain by integrating fiat on it.

We know the world is gradually going digital, so there is no doubt, that at some point in the long run, we will have the governments all over the world, coming up with their own centralized digital currencies, which would probably eradicate paper currency anyway and then we will at least be able to get to see things done different. Nonetheless, it does not really make that much of a difference at the end because it will still be controlled.

It will be similar to e-currency. If countries make their own crypto, it also means that governments give in and indirectly accept decentralized cryptocurrencies instead of rejecting them. Thus, it will make decentralized cryptocurrencies more trustable.

I personally don't think that this is anything different from fiat currencies that are already being used right now.

The reason is simple, the control of the money supply is still up to the central bank or government which is issuing the token on the blockchain or whatnot, it's in no way decentralised.

Sure, blockchain could be utilised, but the ultimate goal of using crypto in the first place is not just to use blockchain technology, but to have a decentralised form of payment which a government backed crypto does not offer. I guess it is an upgrade from paper money in terms of convenience, but nothing other than that.

You should rethink this.

The only benefit of gov't currencies on a blockchain is the speed of transfers IF the gov't agencies don't require people to review these transactions, which they probably will and it will eliminate the speed gains provided by the technology.

What blockhchain use also does is allow the government to track every single transaction made with their currency - is that a good thing?

We are living in such a world for decades and centuries. We have no other choice except detached ourselves from reality that is always be untruthful.

We can hide for once and live in this virtual world we think we’re safe and anonymous, but that soon changed if the government will be hard given attention to it. We will be monitored and like robots, we will not be heard.

We either accept it or one of us must run as president of each country and be the one stopping it.

Either that, or it means they just want to centralise it so they have more control as to what goes on and we end up with the same system we have now just on computers instead... It's like revolutionising by going back in time .

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This is not bad news, we should be optimistic. This shows that the government is consciously embracing cryptocurrencies rather than rejecting them, which will speed up the cryptocurrency globally.

The topic of post is being more discussed in government houses. They are considering it as it will be eliminate lot of Money infrastructure but yet we need to improve our security system to prevent hacks. I think that we are taking different meaning of theft and hacking. I am not a master of programming but just want to raise some basic logic point, we can focus on generating wallets and addresses control system, like if hack happens and funds transferred to some other address, system automatically flag it is red, so none can do transaction with it.

Lol it could be still abused as hell. You are underestimating the corruption with media and you are all tangibles of politics can be turned into data. For example if there was merit for government there would still be a lot of people who vote for the "bad guy" that ruins the countries even without corruption in elections the wrong kind of people would be elected.

Media makes sure's to get the public under control, ever country has channels that supports the regime and people who voted for them watches only those which results with them getting votes and in return for your example would get merits. Politics can't be solved via blockchain.

When a third party intervenes, what is the need for cryptocurrencies? I mean we do not need a lot of things like waiting for confirmations, mining, and other things.
P2P is the basis of cryptos, and without it, transactions are Digital money "based on blockchain" which is much slower than the current payment systems.
If you are trying to get the advantages of a misuse system, creating a government cryptocurrency is the best example.

That's what I think as well. Governments only have to tokenize fiat, which will grant them more control over their financial system than ever before. It's a plus in terms of convenience, but fiat will become even more centralized.

Technically speaking I am dealing with digital fiat already with how I barely touch the actual asset in physical form. I use my debit cards or my banking app to settle transactions on a daily basis.

People in Asian countries in the same way aren't dealing much with actual fiat anymore, it's mobile payment apps that dominate the market, and these will continue to take over with how convenient and fast it is.

People themselves won't notice much of a difference between transacting with digital fiat or tokenized fiat, their apps will make sure of that. The only thing they need to do is unlock their wallet so they can send and receive money.

I am not sure if the national bank will release its own crypto, because so far there are many national banks that continue to contradict cryptocurrency, although it does not rule out the possibility that many countries that support crypto like Japan will implement it.
I personally don't mind living like that monitored by the government, because I feel enough concern if I have to deal with the bank, because the funds I get are almost completely and more than crypto. So if the government and bank will release their own crypto, then that is a very good step I think because I as a crypto user no longer need to worry about something, because so far national banks in my country are still opposed to cryptocurrency.

Increasing the risk of hacking? This is the main reason to see the banks spending million dollars in R&D.
Cybersecurity in which to be proactive is a must, a blockchain is supposed to be more secure than a database, more efficient, time-saving, and so on.

They don't really care about the cost to update infrastructures, it's part of the original investment plan (they think for the long run)and they have the business plan that comes with, money isn't lost anywhere).

Sure the small or medium-large companies may be not able to support the cost, but most don't really have any use of the blockchain technology. The ones that need are the large companies like supply chain, food industry, or financial institutions since they can get the most of the blockchain potential and they have a bigger interest to invest in the blockchain tech.

This all depends on the definition of crypto..

For me, a cryptocurrency has to rely on public key cryptography. The exact variables (PoW/PoS/.., inflationary/deflationary, max supply, etc..) don't matter.

A governmental issued cryptocurrency would just be e-fiat. But if (for example) it is a fork of bitcoin with adjusted parameters and additional stuff, it still would be a cryptocurrency.
Ripple's foundation can inject 2 times the whole current circulating supply into the eco system. This is 0 decentralized and one entity has full control, but it still is a cryptocurrency (even if it's not a really good one). At least in my eyes.

Lots of points to be agreed or not agreed about. More discussions are needed in this regard. But there are some things that make me interested.

It is likely that countries will adapt or simply make their own crypto. If that happens, I'm quite sure that those crypto price will remain fixed. Its completely opposite of the crypto ideology. So, It's not a question of goverment surveillance , because we already are under it, rather a question of will it worth it?

Very interesting topic and many points to discuss here. And to answer the question, yes I do live in this kind world. There are merits and demerits in everything but decentralization feature is very intriguing.

Government issuing their own version of cryptocurrency might bring some form of stability to the internal market of the coin. On the negatives, it might not follow the true nature of the cryptocurrency and could be a variation of e-currency.

Coins created by the government would not set a fixed supply, and even if they´d say the supply is limited, I would not believe them. Crypto for governments is jus e-fiat, not real crypto.

The fact is that most countries are trying to make their stablecoin, mostly supported by fiat money.

It is said that central banks plan to release their own curypto currency in some countries,for example Japan.
I know it is quite extreme, but I consider the world that coin and bill currently circulated are abolished, and only the curypto currency issued by the central bank circulates.
I think there are some merits and demerits of this system.

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Merit for goverment
· Promotion of utilization of blockchain and smart contracts in various infrastructures
· Reduce the cost of issuing coins and bills
· It is possible to prevent money laundering and crime because of catching a money transaction
· It is possible to confirm the history of deposits and withdrawals of funds and possible to reliably catch taxable objects
· Bribery can be eradicated

deMerit for goverment
· Increases a risk of hacking
· It takes cost to update various infrastructure such as payment systems
· Defining the total supply amount makes it impossible to measure to prevent deflation, and If it does not, it will become inflation
· When equipment is destroyed due to a disaster, it will not function as an exchanging means
· Bribery is eradicated

Merit for user
· There is no need to carry cash
· Reduce the cost required for payment settlement
· Easier transfer of assets in inheritance
· Since transactions are recorded on the blockchain, accounting and tax returns are simplified


I think there are other merits and demerits, so I'm happy if you suggest other ideas.

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the goverment, no matter how convenient it is.