In recent years, cryptocurrency has taken over the world by a storm. Everyone either wants to learn more about it or are worried about what the further virtual currencies hold for them.
Though there are critics stating that cryptocurrency will either die its own death or be killed by big establishments that would want to protect the sovereign currency, it clearly seems to be the most sought after with blockchain being the mantra in many pioneer fintech industries.
Financial gurus are predicting that virtual currencies will be evolved by 2030 with most governments in the world adopting to it.
“Governments are making the switch to cryptocurrencies as they are more secure, fast, efficient and can’t be tracked with precision,” says Lars Seier Christensen, Chairman of Concordium.
He Government cryptocurrency has become the main area of research in developing nations as these countries require simpler solutions due to the political and financial instability. Countries like Zimbabwe and Venezuela have seen a positive trend in cryptocurrency during inflation.
Christensen further says, “ Even if cryptocurrencies get a broader adoption by governments and people, other bigger establishments will not let it thrive. For example, countries make money in printing currencies and distributing it and banks makes a profit by circulating the money and creating credit. There are many corporates and other businesses that make a profit based on this. The complete adoption to cryptocurrency will create losses for all these establishments.”
Dave Hodgson, Director, and Co-founder of NEM Ventures, on the contrary, says that no one can kill cryptocurrency. “ US government and other nations are talking about cryptocurrencies and moving forward to accept blockchain. While countries like India have outlawed cryptocurrency, the government of Germany and its Central bank have been responding favourably by stating that cryptocurrencies are not a threat to the global economy.
Even China who had a ban on cryptocurrency and ICO’s has now stated that it is a safe asset and are working towards creating their own cryptocurrency.” He adds on “ With more interest will arise more regulation. Regulation is required in cryptocurrency to ensure there
is no volatility in the economy.”
“Blockchain will change how we currently do transactions. It will ensure there is less friction in transactions and increase the flow of digital assets. “, says Rose Peterson, a technology writer.
In future brick and mortar financial organisations will be replaced by decentralized organisations. By 2030, or even before, financial trends suggest that every individual will have a blockchain identity that will represent both their individual as well as virtual and physical assets. Blockchain will bridge all the current lapses in the current insecure and not very efficient identity systems.
Blockchain will emerge to be the single source of verification for an individual and their assets.
This will enable governments to decentralise and efficiently collect everyone’s data and store it. This will further reduce the risk of security breaches. Governments can easily store all records of an individual from tax details to criminal records under a single ledger.
“With the emergence of government crypto currencies and advancements in blockchain, governments can easily monitor individuals and ensure they adhere to all financial regulations. People can also easily pay taxes and trade and bank without any discrepancies with individual blockchain. In fact, most world trade will move towards blockchain forcing governments to adapt and change accordingly.”, says SOV’s chief economist, Peter Dittus, Ph.D.
He elaborated on how Marshall island, a tiny Island has its own cryptocurrency replacing the U.S dollar. Dittus says, “ This is done in order to spur the digital assets adoption which is backed by the government. Though Bitcoin is a legal tender in Japan, merchants prefer Yen and refrain trading in bitcoin as it is not the sovereign currency or backed by the government. SOV, on the other hand, is built on its own blockchain, it is government-backed and has duked it out with US dollar. Marshall island has made it free for its 53,000 residents.”
Blockchain is the buzzword and apart from fintech, governments have to research and grow with the trend. The UN’s Blockchain for Impact summit saw a considerable progression in many countries to the new age currency. However many countries need to adopt to it in order to ensure they are advancing both economically and technologically.
