Topic: World need urgently decentralized kind of Fiat currency not USD (Read 247 times)

I want to challenge this widespread belief. In fact, some experimental currencies trying to merge the advantages of "decentralized" cryptocurrencies and "fiat-like" structures (e.g. with some kind of flexible emission structure, where a supply change is possible if the users agree, or with methods from barter clubs or time banks) do exist.

Of course there are challenges from them, the most important one is the governance structure. So these currencies don't work like Bitcoin where everybody has the same "rights", there are organizations (like mutual associations) which have the right to create new units, but these organizations are decentralized and democratic and everybody can participate.

Most of these currencies are based on an evolution of the "barter club" concept. For example, in Argentina there is Moneda Par. It is a blockchain-based "mutual credit system", but also a kind of cash is possible it seems. It is created when people offer new services or products in the network, so it's based on the "economic growth" of this network.

I think Faircoin is also based on similar concepts. I however don't know if they are still active (their website doesn't work properly). As far as I remember Faircoin was in principle a decentralized cryptocurrency, but the association managing it could decide to peg it to a certain rate to the US dollar or other currencies, and to change the peg if the supply/demand situation changed.

We should just know that what the people want is not the existence of other cryptocurrencies which we often call as altcoins were mostly centralized, and we cannot compare having fiat to the way we can do when we are holding bitcoin only, the people were already voicing out that what they want is bitcoin and must have the very necessary conviction that  all everyone needs is bitcoin, and not shitcoins,

Theres an obvious home advantage given by Dollar to its native country but even with that fairly clear the majority (of the world) still want Dollar to continue being used.  There are various international ties to Dollar as well as the trade done in dollar both import and export.
A new system whatever it is will bring disruption and at least briefly some trade will recede and be interrupted by any change to a new system even if it were better.   What is going to happen not by demand but sheer gravity will be a collapse and a replacement by some other system.   Most likely it will be FIAT again, some would expect commodity metals as the hot contender and central banks almost always retain gold as a very long reserve in the event of some kind of collapse, ongoing collateral etc.

IMF have a replacement for Dollar I forget the name immediately but its already in circulation but only within the central bank system itself.  China has contested the ongoing western bias that is apparent with IMF and also the world bank apparently, there are some Asia alternatives to this system.  There are quite a few details and dynamics and Im not the one to go over it all especially but still nobody knows the exact nature of what will replace Dollar and so this event is feared and avoided probably right up until it occurs anyway.

 If we presume economics is a natural force not a division of politics Dollar wont last and the failure to repay debt is an ongoing sign of that plus there has never been a FIAT currency that lasted people arent reliable enough unfortunately.
  It could be argued the Bretton woods agreement failed long ago, the engine stopped and we've been free wheeling ever since down hill some because of technology in my estimation and growth benefits that are no longer there now in some case.

The big dream of a decentralized currency will not be that easy to achieve, especially as there is still strong resistance to cryptocurrencies by the government. Bitcoin can be said to be an example of a decentralized currency, but its weakness is that its price is very volatile, and if it is illustrate, only a small portion of society can actively use bitcoin as a transaction tool.

It will be difficult to achieve global equality because strong nations benefit from the problems of weaker nations. The US, European Nations, UK, and other developed nations will not want a single currency because thier currency has more value which is an advantage over other countries. Developing a single fiat currency would be difficult since there is no unity among world powers. However, I am also of the opinion that the dollar needs strong competition and it would be ideal that a new powerful currency should come from the Eastern bloc.


This post reminds me of Libya under Muammar Gaddafi. He was a leader who understood that reliance on Western aid was the pathway to slavery. He built a vibrant economy that was independent of Western influence. Many people in my country migrated to Libya and enjoyed a high standard of living. The West conspired among themselves empowered a few rebels and joined forces with them to destroy one of the most reliable economies in Africa. They turned Libya into a failed nation and the entire Africa is suffering from the effects.

I mean there were some EUR tries, but nobody really wanted to use it that much. If the world "urgently needs" it, then why is there no attention to it or request for it? When the demand is not there, it makes sense for people to not have a good return at all.

I personally believe that it is not demanded and nobody wants it, so the whole world doesn't need a decentralized kind of fiat currency that is not USD, nobody wants something like that. Hell even decentralized stablecoin for USD is not even that much liked, look at everything and you will see that it is not really that much of a big deal. I personally believe that the best thing to do in this case would be just a situation where it is not making any profit, so if people don't want it, it won't exist.

There cannot be a decentralized paper currency. This is meaningless because there must be a central body that issues the paper currency, and the paper currency is meaningless without the support of the government or the support of a central body responsible for it and acting as a guarantor of its value.

As for the issue of resources, they are practically in the hands of powerful countries. As for poor countries, it is true that they possess natural resources, but they do not have control over them in reality. For example, oil, gas, gold, and all precious metals found in poor countries are controlled by rich countries, whether in their production or export.

What you are proposing isn't possible. You can't think of having a decentralized fiat because fiat currencies are controlled by those in authority and power, and it's them who make the decisions about what currency will be used in the country and they would never create a decentralized currency so that people can use that and remove them from the middle which isn't something they can digest, they want control over the economy and the finances of the country and its people.

One of the biggest reasons why countries and governments are against Bitcoin and cryptocurrencies is that these promote decentralization and they know they wouldn't be able to control the finances of their people if they start using cryptocurrencies which is why they either ban them or don't let them prosper.

Yeah, he better say "currency" instead of fiat, just like cryptocurrency. Fees are no problem here because even in cryptos, we are also being charged by it whenever we make a transaction. ATM fees are in fact cheaper than most crypto transaction/gas fees and of course, you can't withdraw a money in the ATM if you have no balance in the bank.

Money is not given freely just like that, you need to work hard for it but except only on some occasions like if there is a massive disaster that hit on a country. Some concerned governments will do a cash donation. I'm sure OP knows BTC already but it's not the one that he needs at the moment.

OP don't get yourself confused, that form of decentralized currency they needed is bitcoin in cryptocurrency and not fiat, no any form of fiat currency will ever be a preferred choice for the people over crypto, remember we have CBDC, this makes no difference to what we have with the traditional fiat notes, just that they exist in digital form, but when you're talking about bitcoin, this is an entirely different approach because its decentralized.

Who is going to issue that decentralized currency? The Central banks? You don’t seriously expect them to give up the biggest power they wield willingly don’t you? Because it would be the same as expecting a king to abandon his throne. People still don’t get it. Nobody’s going to give you freedom. if you want it, you need to fight for it. You need to pay a price and sometimes that price is your blood. If you sit in your home and expect things, all you get will be more oppression, more KYC…

There is no specific nation or country that controls one specific currency for the entire world and to do that would be crazy seeing that different nations have different economies.


How can fiat be decentralized when by natura fiat must be issued by the central bank which has direct ties with the government. We can’t do anything about it fiat is always going to be centralized and even if banks say they are looking into making decentralized currency, I don’t think it’s ever going to be decentralized.

So just choose to use crypto mate than trying to make fiat decentralized

There could be either decentralisation or fiat both of them cannot share same stage because on is not controlled by government other one does. I guess you are looking for fiat backed by some natural resources or gold wherein it should be neutral and not controlled by a single country like USA does without any backing for USD but that's very difficult and remember Gaddafi tried created gold backed currency and how has was neutralized through his own people.

You are onto something but I feel like the problem with your post is that you only have a vague idea of what the problem is and even a vaguer idea about the solution. You are also confusing two different things USD as the reserve currency and national fiat currencies. These are two separate topics. I'll address the second.

You can't just replace fiat with anything else without changing the economy first. For now our economies are designed the same way, they rely on centralized fiat with no cap. It is terrible but nobody has been able to introduce an alternative to that structure. If you want to change fiat, you have to first change how the economy works.
For example what do you propose to be done in case of recession (like the COVID one or the current ongoing one) if fiat is decentralized, has a cap and the government can not control it and print money to inject into the dead economy to revive it (end the recession)?

Iraq and Libya tried doing that. Both Gaddafi and Saddam are no longer alive and their countries are in ruins... (although that wasn't the only reason)


To address the second part which is dedollarisation it is difficult because of the way the Old World Order used to be (US never allowed any country to dedollarise). The two examples I already mentioned.
Now things are starting to become different as the New World Order is established. This is why a lot of countries are moving away from USD. The biggest examples are the economic blocs such as ASEAN that already has an internal payment system replacing the dollar in their own trades and of course the big BRICS that is slowly but surely moving in that direction.

Decentralized fiat is a contradictory term. It makes no sense.

Fiat currency based on trust oj the government that issue it

https://en.m.wikipedia.org/wiki/Fiat_money

A fair and decentralized payment option is called Bitcoin, and it's widely available. It's not under any nation's control, the price is just based on the free market, and one can obtain a small part of it, so it's accessible. It's not perfect, but it works, and there are some places around the world where you can use it as payment. And yes, you can keep BTC in self-custody, unlike digital fiat.
But a decentralized fiat currency is a weird idea, I agree with hatshepsut93 on that (and about the USD, too).

Fiat currency is a product of banking and we cannot expect that we can get access to a decentralized currency that provides equality for everyone, let alone expect it to come with an ATM network, do you think that it is all free? To operate all this you need money and a centralized system to regulate it. So hoping for a decentralized currency is impossible at the moment, except for Bitcoin. Only Bitcoin is a decentralized currency that allows people to transact it freely without intervention. If you are hoping for a decentralized currency, then Bitcoin is the answer. Even if it is not scalable, only Bitcoin is truly decentralized and intervention-free.

A fiat currency can't be decentralized. It has to be printed by an entity and the circulation is controlled by an entity. The ATMs need to have a cash flow which again needs to be controlled by an entity. Otherwise the entire game flops! That's how fiat currency works! banks are empowered by the governments to take action on you if anything goes against their interest.

What we need is cryptocurrency. But again there are many centralized players available in the crypto market who can freeze your crypto wallets as per their own wish. If you are looking for complete privacy and freedom, then even Bitcoin is not a great solution. You may want to look at XMR.

Banks survive from lending, in order lending to survive, they need to prints new money otherwise they will lack of funds.

If banks didn't offer lending and they choose to survive from monthly charge, people would choose to save their money in homes to banks because saving in homes is free.

If this trend continue without any change, the banks would collapse.

So, if a country choose to use decentralized currency over centralized currency, they won't survive.

Fiat currencies and now as well as in future, we will have CBDCs (Central Bank Digital Currencies), are governed my governments and launched, distributed by central banks. They have power and necessary laws to control what they do with fiat currencies and CBDCs.

If you ask for decentralization in fiat currencies and CBDCs, it is very unrealistic. Think about it by putting yourself in a position of government and central bank, will you are ready to give up your control and power to citizens?

I believe if you are in these positions, your answer will be No and you will use everything you have to defend your power and centralized control.