Cryptocurrency investing is not going away. Therefore, a huge number of global leaders are now concerned about how digital money will change the world in the next decade. The global leaders have now admitted that digital money is all set to re-shape the future of the international monetary system.
Whether you accept it or not, the digital currency will soon become one of the major nation-state actors. The world has now started moving towards tokenize contracts and real-world financial assets. The participants have now started using the cryptocurrency tokens to represent their financial assets and fiat currencies. In fact, large players like Berkshire Hathaway are getting into the digital currency game.
The regulators are now trying their best to build a financial system on this infrastructure, targeting three main areas.
Public Blockchains and Digital Assets
The crypto native ecosystem players are playing a vital role in building fiat-backed stable coins like USD Coin. Thus, the companies and developers have now come to a position where they can build excellent financial constructs like credit markets, decentralized lending, tools for trade finance, and payment services.
These private-market based approaches are being administered by existing payments banking rules like the EU and the US. And the market is now showing rapid growth. So, digital currency is now playing a tremendous role in building a pillar of the open finance movement.
Private Blockchains and Centralized Assets
The building of a huge synthetic global digital currency is now under construction with the help of the Libra Reserve Currency. For this payment system, the Facebook proposal has created a centralized and permissioned infrastructure. It’s going to set proper limits for the companies and developers that are concerned about building on top of the infrastructure.
State-Run Blockchains and Digital Currencies
We cannot deny the fact that the Chinese RMB is designed with a permissioned, centralized, and controlled infrastructure. Sadly, this infrastructure won’t get a massive response to the broader internet development community because this infrastructure is mainly designed according to the Chinese economic and political model. However, China’s Digital Currency Electronic Payment is a great example for those who want to become a part of this industrial revolution.
What Do People Think About Crypto?
Are we ready to welcome a financial system that will make it easier for companies and individuals to develop financial arrangements in code?
And if we talk about the Chinese approach, it will be really difficult to convince the people on a situation where they will have limited and controlled access to innovation. No doubt, the Chinese RMB is going to get excellent growth globally but the world would hardly accept if it mirrored the tightly controlled internet that is working in China today.
On the other hand, the Facebook construct is focused on building a new global currency that is regulated by the largest private companies in the world. But it might not bring a drastic change to the financial world because the currency will still be controlled by a few players.
The largest governments should now participate in implementing the new changes. Thus, they’d be able to build new rules and regulations for the public cryptocurrencies.
The technical innovators are swiftly developing new ideas to rebuild the global economic system. So, the authorities need to meet their speed otherwise, they will be Left behind.
Seymour Nunez is a contributing writer for Cash Tech News who enjoys writing about the intersection of blockchain technology and everyday life.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.