Bitcoin Forum

Maybe Not Possible For Governments To Get Off Fiat??

 Thinking that with the USA dollar as the main reserve currency, That would make it very hard for other countries to get off the USA dollar and other fiat systems if they wanted to.
Such as moving to a money system that has more limited supply.

More less to drop a fiat system altogether for the international business aspect for that countries exports and imports.

There would be or could be in my opinion consequences such as a possible war break out with in some case the USA before.
Now with China taking over some countries. If those countries dropped the Yuan for business, there would be serious consequences coming down from that,

For example I am in Canada. If our country here stopped the USA dollar altogether for the trade transaction between USA and Canada there be serious consequences, even if my country Canada the government dropped the Canadian dollar or any fiat system in the country and moved to a new system, like BTC or some non fiat money system on the national system. There would be very serious sequences coming back from other governments in other countries.

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?

The politics of which currency is used for global trade is a long standing one and would be for many more years. USD is currently the most popular for international trades, it has previously been GBP and in the future it could be a new currency, possible from an Asian country. A nation cannot be intimidated into using the dollar. In global trade, countries depend on each other for goods and services.

Bitcoin does not play a part in this politics; for one it does not need fiat to be abandoned and can work along side it, it also does not need government recognition for it to be put to practical use globally.

Of course, it could get to the level of economic and even political intimidation. Every country wants its currency to become dominant in the global banking and trading sectors. The US will not want the Chinese Yaun to overtake the dollar so it will do all within its power to ensure the Dollar remains number one even if it will take diplomacy, threats, intimidation, and to extreme war.

But it will be stupid for any nation to ditch the dollars without necessary preparation and planning. It will be suicidal for any nation that depends solely on imports from the US or rely on income from export from the nation to consider abandoning the dollar. Before such policy will be announced there should be a gradual diversification and restructuring of the nation's economy so that it could be able to withstand any economic sanctions or embargoes that might be placed by the US because of the ditching of the dollars. It has been assumed in some quarters that Russia prepared for this invasion which was why their economy is to a large extent sanction-proof.

I think it's possible for governments to make a transition from using fiat currency, but it would be such a big mission that would require a complete overhaul of the financial system, like for example taking of the USD for bitcoin would be insane but I don't think that would be possible anytime soon.

Fiat money has been the backbone of the international economies for centuries now and it's deeply ingrained in our financial system and a way of life. However with this rise of crypto like Bitcoin, some governments and financials institutions are exploring the possibility of this huge transition from using fiat, as far as I know, El salvador did such a good starting by accepting Bitcoin as a local currency and I hope we will see many countries in the future accept it too.

It is not about intimidation, if any country wants to change either their financial system or their reserve currency, they can do so and must be ready for the implication on their economy, if a country wants to stop using fiat, what then do they change to, BTC? It was created to be a second choice option that works without any third party, the central banks and finance officials have to regulate whatever currency that is in use in any country, what would happen if BTC is their main currency, they can't regulate it, or print and issue it, how do they ensure it circulates in the country, would the government go into mining?
If the USD stops being the world's reserve currency, its replacement cannot be BTC, how do governments make BTC their reserve currency and use it for international trade, it is volatile and decentralized. Euro can be a replacement, the Chinese Renminbi or even gold, but i don't believe a decentralized currency is in the running.

IMHO, this is more of Economics topic and not a Bitcoin Discussion.

They won't drop the fiat system because that's the standard of all countries in the world. They have no other means of exchange but through that unless they all agree that they can receive trades through gold or silver.

But then, in today's modern world, most of these countries are starting to think who should be at the top and who should still be at the top and that's being decided now. And everything is still in paper right now unless the changes has come.

That’s the misconception many people have about bitcoin they actually think that its usage as a legal tender will make them not to use other currencies like the fiat system again. This is wrong because bitcoin is only here to act as an alternative for fiat currency. So if your country Canada makes it a legal tender that doesn’t stops them from using other currencies like the US Dollar to do transactions with other countries that do not allow the use of bitcoin.

The Saudi government is currently working on accepting gold as a means of payment for their international transactions also countries like China Russia and fellow BrICs have also agreed on using yuan currency for their transactions but this doesn’t stops them from using the Dollar currency. It simply means they are looking at way where they would limit the supremacy of the dollar and also the political influence of the US.

Reading your brain-tickling comment, I can't help but notice that our financial system's transformation hurdles aren't just technical – they're deeply entwined with geopolitical power plays. Sure, the US dollar's reserve currency dominance poses a major roadblock for nations itching to ditch fiat. The potential fallout, like trade wars and geopolitical strife, can be pretty scary, to say the least.

However, as our world shrinks and globalization intensifies, the call for a united financial system will grow louder. Like you pointed out, we're closing in, and a worldwide currency feels inevitable down the line. This shift won't be smooth sailing, with significant roadblocks on the way. But armed with thorough planning, cooperation, and a dose of adaptability, we can strive for a financial future that's transparent, safe, and fair to all.

Though the thought of abandoning fiat may make you break a sweat, let's grab the opportunity to shape a superior tomorrow. United in our efforts, we can nurture a world that's just, sustainable, and flourishing for everyone.

They don't want to remove fiat, they want CBDC. There's even a recent interview with an analyst Lynette Zang, you can google it, who said that the banking crisis was created to scare people and make them eager to accept CBDCs. That's what it's all about. Of course it would be difficult for governments to drop fiat completely, but CBDCs are fiat, just much easier to create, track and control.

Just add 2 and 2.
For a long time they've been reducing fiat payments. In the EU a couple years ago you were able to make 20k EUR bank transfers and cash payments without any problems. Nowadays, you can't make cash transactions over 10k EUR, you have daily ATM withdrawal limits (usually 250 EUR) and there's a 1lk EUR limit on crypto payments. There's also 1k EUR limit on no KYC exchanges in the EU.
All of it has been done in the last 2 years.

Ask yourselves why they're doing it so fast. What's their problem? The answer is World Economic Forum is pushing for CBDC and countries like France, Sweden, Netherlands, Canada and many more are happy to comply ASAP, which is why in Sweden you have extreme limits on cash payments in Sweden right now.

governments are not itching to ditch fiat. they just are itching to ditch other countries controlling them. where they can have their own currency.

EG el salvador had no proper currency of its own it used USD thus it wanted an established currency but without the ramifications of trading US for say europe or china. so it chose bitcoin

however el salvador would like its own peso currency domestically too.. some day

as for the USD being world reserve currency. well thats for the member groups of the IMF
and with many countries wanting to leave the IMF or sanctioned out already, they instead want to trade using the BIS settlement system direct. thats what the BRICS are doing right now china russia south america africa and even middle east want to use the BIS platform using their own stablecoins(CDBC's) that bridge together in a hyperledger at the BIS using the BIS as the exchange

though the CBDC's wont be finite/limited supply. and wont be as freedom associated as crypto. they will be slightly different than current fiat. (only slightly from PoV of users)

these CBDC will still obey countries financial policies. so dont expect anything very different here. its just fiat2.0 with less central currency reserve measured in 1 super currency..
but instead of US IMF controlling them all.. the BIS will be the main forex exchange for multiple countries currencies to pair against each other without reliance on the dollar as the exclusive/expressive value indicator of each

ofcourse due to the population dominance (billion+ pop per country) china, india, africa and south america will all challenge each other as the next gen super power, so await for that to play out a decade after they form their partnerships to escape the IMF via moving trades to the BIS

but in the end its still going to be countries having their own currencies. but as CBDC instead of current system

In the coming years, it is possible that a new form of fiat currency will emerge, but it is unlikely that it will completely replace existing fiat currencies. This is because governments need centralized currency to maintain control over the financial system, whether it is in the form of digital or paper money. Without centralized currency, decentralized forms of currency could potentially overtake the existing power structure. Therefore, it is important to acknowledge that a world without fiat currency is unlikely, even though many of us appreciate the benefits of decentralized options such as Bitcoin.

Fiat is not the problem the system controlling the fist is the problem, I was reading an economics-related journal, and a very pointing thing was mentioned there that Fiat is not trapping in nature but the state and governments on the state make them trapping. The writer said that if you really want to survive with the fiat then eliminate the control of the government from the demand and supply system of the fiat. This is the only way to follow up but I don't think from the monetary policies and power of government it is gonna ever happen.

Every Government creates a worse condition compared to the previous one and this cycle is repeating for years and years until now, Now the e circumstances are people are not willing to belive on the system.

In matters, like this, I've always made my point clear, and that is the fact that bitcoin and fiat can co-exist if the government want it to, it is that simple, one doesn't have to die and completely wiped out for the other to dominate, no, fiat can still be in circulation while bitcoin is also in circulation.
Having some options to choose between one thing and the other is always very exciting, fiat can still be in circulation for the sake of our aged mothers and fathers who did not attend school and possibly lack the technical know how to really transact in bitcoin.

And also, likewise, bitcoin payments can always be there for those of us who are already in the game.

Any country can move to cashless society but I think there is still a lot of time left for it to happen. Cashless society does not mean that fiat currency will end completely. And by cashless society it would also be wrong to imply that it will be cryptocurrency only.
Every government wants a system where the government can control anything it wants so if we view this in this way then it will never gonna fully happening. And I think fiat currency is still important for political action and increasing connectivity with the global economy, it's not going to end easily. However, it can be expected that in the future, 100 years or less, the economy may become dependent on crypto currency.

Governments are not the ones who decide on financial policies, so change is almost impossible if banks and major financial institutions remain the ones that impose those policies. Currently the dollar is the dominant currency in the world. It derives that dominance not only from its value, but from the parties benefiting from it (banks).
Since it is not possible to change a country in isolation from the rest of the countries in the international sense due to the economic interdependence, it is hoped that the adoption of the new systems (Bitcoin and Crypto) will occur in parallel with the fiat system without one canceling the other.

If there are any changes in the country's financial system there could be an outcome like having an effect on international trade and commerce.
But that's unlikely to happen since we have a government that controls every financial flow and we know that the supply and demand of fiat currencies can be manipulated by governments and central banks, which can lead to inflation, deflation, or even currency devaluation.  So it's impossible they will get off fiat that is under their control.

That's why there's a decentralized currency raised.
Like Bitcoin, that has the potential to disrupt traditional financial systems and provide individuals with more control over their finances.  So possible that we will see new forms of currency emerge that we can't even imagine today.  That's why we remain open to new ideas and opportunities that we work towards creating a financial system that's transparent, fair, and accessible to everyone.

countries for different reasons want their own currency.
EG america wants to be a super power currency where its $10(min wage) is upto 100x of other countries min wage value. so that it can make things 100x cheaper else where import it and still profit.

if all countries had a one world currency where everyone got paid the same min wage amount for their hours. then imports/exports would vanish down from 50% to 5% where only exotic products would be imported that couldnt be grown natively

also financial firms would not be able to currency trade if there was one master currency. so it would affect all countries financial services that offer forex/international trade

countries are not preparing to move to a single currency they are actually dividing away from US IMF controlled reserve swaps and trying market paring trades direct..

but with that all said they wont want to move to a citizen controlled currency where tax becomes voluntary. they will just use CBDC to make accounting/transfer more automated/secure/trusted where having dozens of "miners" scattered in different cities avoids financial blackouts. but still having government financial office in-charge of policy

its not the official acronym. but i always (jokingly) thought of FIAT as Fractionally Insured And Faxed
and that system is not going to change even with a CBDC

With the existence of BRICS nations gives the other countries to actually have an alternative to where they wanna trade. And then there's also cryptocurrency as an alternative for the citizen for which the political sanctions of powerful countries may not be as effective as before.

What could happen though is always a regime change for leaders who are not agreeing to the bloc. The consequences are quite devastating to the economy and when a country is divided, it will have chaos like what is happening in France these days as Macron visits China.

I believe you are referring to the global trades? If yes, things are going to change sooner than later. Multiple countries have already signed agreements to use their own money for international trade. One of the most recent one is Saudi Arabia to stop using USD for their trades.

https://www.cryptopolitan.com/saudi-arabia-cuts-ties-with-united-states/

That's an alarm for the US government. So the debate here is not to change the financial system out of fiat. Fiat will remain as it is. But the dependency on the US dollar is going to decrease which will decrease the Purchasing Power of USD. It may change if US decides to attack middle east again for no reason!

The transition to a monetary system with a more limited supply for states is absolutely unacceptable. It is impossible to try to transfer the principles of operation of the cryptocurrency to the fiat system of states. The amount of fiat in the state should be generally equal to the amount of material assets that can be in circulation on the territory of the state. Any deviation causes negative consequences for the economy of states.
The transition to the fiat of another state or to cryptocurrency also negatively affects the economy of the state.

This statement is contradictory in a sense because there won't be an emergence if you don't replace the existing one although I do agree with the part about it being unlikely. The government wouldn't easily replace fiat even if they want to, that would be a nightmare especially for countries like US, they are a reserve currency for many countries so they can't just replace their money easily, that's why they still use cotton in their currency and not polymer.

Canada is a country where it has a good relation with US and Canada is also strict as US.

China and Russia are have politics problem with US and it's territories, that's make China and Russia are possible to get off from USD because there's no reason for them to use USD.

Even USD is a global reserve currency, but don't forget China is so quite big and their economy are leading too.

It's not a political issue, it's just competition in the market. Everyone wants to be the world's head and center, and that's what's going on between the US, China, and Russia. The USA has been at the top of the world for more than 100 years, and it is time for them to give up that position to the stronger in the same way they overtook Britain 100 years ago. The revolution of eliminating the USD, and reducing dependence on it is taking place, although there is no guarantee of success, but it shows that USD has started to have many problems.

Isn't local fiats beneficial to its governments? Governments want to have a grip on their countries as much as possible. So replacing a local fiat with bitcoin is very hard to imagine. Maybe restore gold as the standard form when it comes to the issuance of fiat supply per country? The United States is the most powerful country and due to its influence, it is successful in making its local fiat the international standard currency. It would be hard to drop the US dollar as an international trade standard due to politics unless you are an enemy of the US or you are on the side of China and Russia. 

I am pretty sure that its nearly impossible to totally ditch fiat money as there are many great stable fiat currencies. Swiss Franc and Euro would obviously replace United States Dollar if such things happened. So Bitcoin would still stay as alternative currency. Current monetary system is all about creating debt and buying now for selling future. Its inflationary because governments want it to stay inflationary. In long run, there could be different but not exactly as alternative, methods may become popular. (Gold money etc)

It's true, but we still don't know what BRICS countries will do to USD in the future. China want to replace USD with Yuan, but it's rejected by many governments. With the help of other 4 countries e.g. Brazil, Russia, India and South Africa, there's a chance USD can be replaced with their new money. Russia and India are big countries, so US and it's territories should be careful.

I still wondering why Euros are smaller than USD and Yuan, it's accepted by many developed countries.

Yes, this is intimidation to other countries that is trying to make their fiat currency popular than USD which many countries of the world are used to in terms of international transaction. During the war that came up between Russia and Ukraine that made China and other countries to force their international investors to be more focus on their currency than USD which is a sign that it will not be possible for government to value other currency than her own currency no matter how favourable that currency is to them. But it will be difficult for China and other countries trying to make their currencies more popular than USD because, many foreigners investors are used to dollar for a long time in their business activities.

Yes I think that there would be a lot of consequences and intimidation for countries to try and stop using fiat money. There are two types of countries in the world, net export and net important country. Which basically means that some countries consume more than they produce and others that produce more than they consume. USA is a good example for a country that imports more, which gives them a lot of power. In the past most of that International trade was settled in USD and if one of the trading partners would move away from USD now, then the USA could try and switch to a different country for it's imports. Most products are not only offered by one country and if your economy relies heavily on its export to function, then you are dependent on the big countries. That's why I don't expect we are going to see any of the big countries to switch out of the fiat system anytime soon.

If a country can get rid of dependence on economic cooperation with other countries, of course they can change the financial system.
But does fiat really need to get rid of, while a function of fiat is a representation of a country's economic system. I mean in terms of price, the government always does its best to beat other currencies including changing or revising the economic system.

Arguably, the difficulty of governments getting out of the fiat system has something to do with the stability and globality of today's financial systems. However, it cannot be asserted that having other countries block other governments from wanting to change the financial system would be a case of intimidation from more dominant states. Governments have the right to make their own decisions about their financial systems, and changing this system can depend on many factors such as the political will and economic capabilities of those countries.

The rise of the renminbi (CNY) is a remarkable trend in the world financial market. China's impressive economic growth and its easy monetary policy have helped the CNY increase its value in the international market. However, it should also be noted that the rise of the CNY also brings with it some risks and challenges. One of those challenges is the competition with the USD in becoming the world reserve currency. In addition, coming up with timely and effective economic and monetary policies is a challenge for the Chinese government. Going forward, China's continued economic and financial development will be an important factor in determining the solidity and potential of the CNY. However, with impressive growth in recent years, the CNY is likely to become an attractive option for investors and businesses globally.

Then it can be considered as alternate currency if the current currency couldn't be replaced. But if that's the case and many people much recognized the alternate currency then it would have impact the country's economy. That's why until now only few countries acknowledged the existing alternate currency for example like Bitcoin. US is considered as universal trading money as a lot of country has a reserved dollars. But for sure they couldn't get off fiat as their economy is stable and as I said it might impact the fiat's value and ruin the economy. They actually recognized crypto and blockchain technology they're already opened to it since a lot of people much prefer the alt currency since it's more convenient.

If the question is like that, I don't think fiat needs to be removed and is still needed,
after all fiat value is determined by the stability of the economy and government,
obviously I don't think fiat should be done away with.

The government will never replace fiat currency that they released and have full control by any decentralized currency.  One major reason is the control factor.  We all know that the government always wanted to have authority over their jurisdiction and replacing fiat currency by Bitcoin will go against their authority.

Just look at how these governments trying to control decentralized cryptocurrency, they implement all kinds of regulation under the guise of anti-money laundering and make KYC on  centralized financial services mandatory.  They do this to make sure that they can have someone to collect and hand them personal data of people if they need it.

Never say never. In Europe many countries replaced their native currencies with the Euro, which they had no control over. They gave up the control over the currency to the EU.


Don't mix things up. KYC has very little to do with control. It's a data gathering tool.
No crypto users have to undergo KYC. For now it's still your choice if you want it or not and even if you choose to do it, nobody is taking away your bitcoin... yet.
It's possible for governments to ditch fiat money. Money printing is not a requirement for a stable economy. It's just that old habits die hard.

In terms of the global financial system, numerous political decisions are being made that the general public is unaware of. The US dollar will remain the most extensively used currency for international transactions for some time, requiring a total change before being swapped to another currency. The world's financial power is shifting and can shift in any direction.

In this process, top countries are always favored, while lower countries follow suit because they believe they cannot exist without the assistance of the top countries. More nations have been harmed by financial dependency than have risen above their world standing.

In reality most "fiat" currency is just stored electronically anyway, the amount of notes and coins in circulation in miniscule in comparison. It's effectively much more advanced in how it is stored and manage than most cryptocurrency can claim to be - crypto primarily has the advantage that it is decentralized. In the end governments do this because it has been found the best and most effective solution to peoples inherent need to trade. It's nothing to do with whether they can "get off it", it does the job it's meant to do very well and the free market dictates the rest. Just like we saw a flight from cash during Covid, when there were less people out shopping and a bit of a stigma on passing around objects which could host the virus, the need for physical cash and the transfer to more online finances increased.

Fiat money means two things: fractional reserve banking and money printing.
Fractional reserve banking is the main reason why the global economy kept growing with high rates in the last several decades.
Moving to a currency with a limited supply would mean the end of money printing, which means that the economies won't be running on steroids anymore and the artificial economic growth will become a thing from the past. That's why no politician or banker wants to dump fiat money.
Your example with Canada isn't good, because Canada is totally economically dependent from the USA, when it comes to exporting goods.
Other countries(like China, Russia and India) are way less dependent from the USA and they could easily dump the US dollar.

Economic power will decide everything, the EU is a powerful and united bloc, but their mistake is being too dependent on the US not only economically but also militarily. It's really a pity for them. Since the outbreak of war, they started trying to reduce their energy dependence on Russia, but they ended up falling into the US trap when they were buying LNG from the US at 3 to 4 times the market price. It can be said that the EU economy is more dependent on the US than ever, and that is what the US wants, and they have succeeded. As long as the West relies on the US, the Euro will never surpass the USD.

I think it is possible to change their financial system but this decision has consequences because any move away from fiat currency will require careful planning and cooperation between countries otherwise potential conflicts and negative impacts on trade are very vulnerable, weighing the potential benefits and disadvantages of these changes and considering the long-term implications for the country and its citizens I think it is better for the level of confidence and stability in the alternative financial system.

It is possible if only the government have control over that too. Otherwise, they will never replace the fiat currency. But in theory, it is very much possible. We need a new system to replace the fiat currency. Let's think that as crypto, for example. We can use both of them at the same time. Keeping them both side by side and using at the same time will give us much more freedom to learn about the new thing and adapt to it in a better way, rather than throwing out something and completely replacing it overnight.
But no such thing is needed in the eye of the governments, and they will never approve something decentralized which will harm their centralized system.

I think EU just doesn't want to participate in this situation, they are happy with what they have and do not want to be bothered all that much. When you look at all the "financial war" between nations, sure you can see Russia, China, USA and even can consider EU to be part of it but not so much, which means that euro will not be as strong because they do not want to be part of any war. Sure they participated in Ukraine one, but that is because it is a real war and not a financial one only.

I think BRICS could try their best, and they could end up not using dollar between each other, which would be a great benefit to them, but that doesn't change the fact that it would be hard for them to continue down that path as well, there will be some challenges.

I also believe that the EU countries do not want this war to happen and do not want to participate because they know that it will not bring any benefit. But the problem is that they are both close allies and vassals of the US, so they cannot stand by and watch the US being attacked by its opponents. They will be drawn into the war, but it's more of a compulsion, more reluctance than actually wanting to go to war.
Like when the war between Russia and Ukraine broke out, they did not initially intend to support the war by sending weapons to Ukraine, but they were unable to resist or disobey the US. They like Ukraine, do not have the right to decide their own fate.

Your point is well understood and I agree with you on this, Fiat and bitcoin can still be used in all the countries today if the government decide to do away with the political hatred and decisions they have seen in Bitcoin and other cryptocurrencies all over the world today. The only reason why the government has failed to see or accept Bitcoin and other cryptocurrencies in the world is because of the rate of corrupt leaders and political occupiers that we have in the whole world today, of course we know that even in some countries where bitcoin has been accepted as legal tender they still have and make use of their local fiat currency and things have been moving on smoothly there but other countries have failed to accept cryptocurrency because of the level of corruption they have in the country they know that bitcoin will make their citizen especially the youth to have financial freedom and they will have the ability to control their money without interference or monitoring of the government but the government have seen fiat as the only way they can use to track every individual they wish to trap for example an individual that don't want to obey them they always use the Fiat currency to trap the person.They have seen bitcoin and cryptocurrency as evil because they think that people use it to do fraudulent activities but looking at everything it is the fiat  that has been used to do so many damages all over the countries  but here they thy see bitcoin as the only evil that's why they cannot accept cryptocurrency as a ligal tender all over the world but I believe that with time they will come to understand that fiat can still be in existence in a country where also Bitcoin is existing too and the economy of the country can still be doing very well.

When your whole economy is tied with a currency, there's little to no possibility of you outright removing yourself from said currency. Plus all current economic situation and paradigms are set in the fiat standard, so an upheaval of the system is not only unnecessary, but is severely detrimental to that country's whole econonomy.

Picture this, you're in a classroom setting, where everyone's expected to use an inexpensive notebook, only for one day be told that you'll be ditching the notebook in exchange for "a more advanced tablet pc", with you and each and everyone of your classmates shouldering the costs, not only will you be livid, you'd probably gonna end up broke too.

Good point made , and thank you for taking your time to really expanciate and articulate on the matter , you are right on everything you said, the government know clearly the potentials Bitcoin ,and all other cryptocurrencies possess..

Can I tell you something?

The government are not against bitcoin In real sense, bitcoin is a perfect money for the government as well, but what they(the government) are really against is the trustless nature, decentralized nature of bitcoin and cryptocurrencies, like you said, the government are in total control of fiat, if it was possible for them to gain total control over bitcoin and its network the same way they have control over fiat, I tell you that by now, bitcoin would have become a legal tender in almost every country of the world.

To put it in a more sensible, the government are against Bitcoin due to their inability to. control Bitcoin just as their control the fiat financial systems, this is the one a and major reason why the government are perceived as anti-Bitcoin and this has been the only reason why government make public pronouncement against Bitcoin but the truth is most government officials have Bitcoin as an asset and even the united state government owns a large amount of Bitcoin mostly the ones they're siezed as precedes pf crimes.

I think what the government should do instead of banning Bitcoin is to make room for Bitcoin to exist in their financial system as a decentralized alternative but citizens should be warned of the risk associated with Bitcoin due to its high volatility.

But unfortunately, that will never happen for now and the government will still be thinking about the Decentralized nature, not having full control.
The government can only manipulate and regulate according to what they want, but cannot fully regulate.

The statement about Bitcoin possibly being the perfect money for Bitcoin, seems too much.
Bitcoin is a scary thing for some governments that can be said to be corrupt, it will reveal everything that is not transparent.
It could be a solution but it could also backfire on them (the government).

Fiat is still the main one and Bitcoin is just an optional payment that can be chosen or left.

There is a difference between participating while wanting it, and participating because you have to. UK sent soldiers to Iraq and I believe a bit to Afghanistan as well? Not entirely sure about Afghanistan but I know for sure that they went to war in Iraq as well.

Look at what happened, everyone remembers USA very clearly and everyone thinks they did, but people from UK, Poland, Italy Spain and many other nations all sent soldiers and yet nobody talks about that. So if you do not want to join, and half-heartedly do something then even if you send soldiers to kill people, sometimes even innocent ones, you do not seen the evil person, the one that WANTS to attack is the real evil and that is what USA became when they did that.

That's an interesting question. Getting off fiat completely is probably impossible, unless it's done globally. That's because there are different aspects of using money: legal tender, main reserve currency(ies), and external affairs currencies (trade, financial aid). So suppose your country decides to take a risk and adopt Bitcoin as a legal tender, while also getting rid of the local fiat that used to be legal tender. There's also a reserve currency thing to deal with, as the op pointed out, and it's a political choice in  many ways which currencies to have. So yeah, it's problematic to get rid of the USD like that, it's a radical unfriendly decision. But there's also a third, totally practical aspect, which is the currency you use to pay for international goods (and a particular fiat currency can be requested by the seller here), as well as the currency in which you borrow money from the EU, the IMF or some other big institution, which isn't going to be in Bitcoin either.

It's my opinion that the decision to move away from fiat will depend on a variety of factors, including economic conditions, technological capabilities, and political will. While geopolitical factors and power dynamics can play a role in a government's reluctance to abandon fiat currency, there are also practical considerations to consider because currencies fiat provides a level of stability and predictability that many governments might desire.

Bitcoin and other cryptocurrencies are suitable for coexistence alongside fiat currency in every country. Nonetheless, what about some of these legislators and leaders? They simply cannot see it. They are blind to the many advantages of decentralized cash because they fear losing control. However, that won't deter us! Taking charge of our financial future necessitates entering the exciting realm of cryptocurrency.

Envision a world where Bitcoin allows instant, secure international money transfers. The days of waiting for wire transfers and being paranoid about identity theft are over. And if we're all well-informed, we can put Bitcoin and other cryptocurrencies to use in ways that benefit everyone. Tremendous!

Why do you think that in Ukraine they do not decide their own fate? Let me remind you that when eight Russian armies with a total strength of about 200 thousand people with the best armored formations invaded Ukraine from three sides in February last year, the US and Europe were convinced that Ukraine would not last even one week. Therefore, they offered President Zelensky and his government an evacuation plane, but received the answer that they needed weapons, not evacuation from Ukraine. On the very first day, six Russian fighters were shot down over Kiev in ten minutes, and since then they have not flown over Kiev anymore. Two months later, in April, the Russians were forced to hastily withdraw the remnants of their battered troops from the central and northern parts of Ukraine, so as not to be completely defeated.

During the two months of the war, as of April 24, 2022, Russia lost about 22 thousand of its military personnel killed, 873 tanks, 2238 armored vehicles, 179 aircraft, 154 helicopters, 403 artillery systems, 147 MLRS, 69 air defense systems, 1557 various vehicles were destroyed. technology.

Only when the West realized that Ukraine was capable of defeating the Russian "Second Army of the World" with sufficient help, they began to help Ukraine. But tanks and armored vehicles began to arrive in Ukraine in significant quantities only at the beginning of this year, that is, after almost a year of the war. Until that time, Russia was the best sponsor of military equipment. The Ukrainians alone took more than 700 tanks from the Russians, which is much more than all the current allies helped her.

Even a few months ago, the United States advised Ukraine to move away from Bakhmut so that the Armed Forces of Ukraine would not be surrounded. But the small town of Bakhmut in eastern Ukraine, which the Russians have been attacking since May last year, is still holding out. Therefore, Ukraine makes its own decisions, but listens to the opinion of its allies.

By the way, European countries, especially the Baltic countries and Poland, began to actively help Ukraine after the Kremlin's aggressive statements in their direction, and they realized that in Russia they would not stop at Ukraine alone.

I think, not every country has an ambition to become a world leader. For example, it's clear that Nordic countries prefer peaceful life with high quality of life and prefer to stay on their own while it's clear that the USA, China and probably Germany (and probably France with it) in the name of EU, wants to become a world leader. I would say that Russia definitely wants it but it has zero capability to achieve that goal, doesn't matter how much it wants, it has zero capability.

At the moment, it's almost impossible to make America give up on keeping it's currency as a dominant one. It's not training its NATO troops to make a show, there is a reason, there is a plan.

America makes it very hard or almost impossible for small countries to abandon USD. It has a huge influence in every country and has USAID programs all around the world. If you are not a lazy person and work hard, quality of life in America is great. People in poor countries work hard but rarely earn. So, America tells people of these countries: We are here to help you, to develop your countries, to improve your quality of life. If the government of any of these countries abandons USD, then America will tell their people that their government is corrupt, is doing bad for them, for their children, etc. One may laugh but this is reality, they gain influence in poor countries. Also, one thing that I noticed during my travel in some poor countries is that these people trust USD, Euro and GBP more than their own currencies. I've even heard from some taxi drivers that they save their savings in USD because their local currency has high inflation, etc. People even calculate the value of their apartments, cars and other things in USD instead of national currency.

America has a great relationship with Europe too, which is a huge economy and very developed union. America has great relationship with Canada, Australia, New Zealand, Japan, South Korea. These countries aren't going to abandon USD because things are going well for them with this relationship. The Chinese-USA economy is pretty linked too. So, now think yourself, is it easy to abandon USD? Countries where USA has placed its troops and nuclear weapons, are really gonna abandon USD? If they abandon it, what will be an alternative? It won't be crypto, at least for now! But this will happen, it's only a matter of time, it may be a smooth process, not an instant one because in case it's instant, I already said, America has roots very deep, there is no way they will let this happen instantly. And long-term, it will happen because nothing lasts forever.

Anything is possible, if they move from Shekle to Gold and now Fiat, they can get out of Fiat, what Government is all about is power and control and I expect them to try to hold on to this power whatever it takes. China is doing it and since most countries including the Western countries are shifting towards authoritarian states they will likely buy into the China model with time. People need to prepare for what is coming

At least for now, not all governments can get off fiat, apart from the developing AI and other technologies that need to be put in place, the trading between already importing countries will still stand with their respective currency

I also think of this as America have a great and strong hold to developing countries that they would not want to abandon the USD since more with be at stake with regards to the economy. Also, the long term effect of how the world see the image of America have a great impact on to how most countries see them which is a country that has strong economy and a country that really helps other country improving their economy. But, as what I see today, the image of America is starting to change. Let's see how would these affect them but I definitely see that these would have a negative effect on their image. But for now, it is indeed that America have a strong relationship with major economy in the world and these countries would never want to abandon USD anytime soon as they would want to keep a healthy relationship with these country.

As others have already mentioned, there isn't necessarily a need for countries to drop fiat from their reserves completely. They're generally only interested in having stable assets, so the highly inflating currencies are the first to be dropped in place for other more stable assets. USD isn't attractive with a 40 year inflation high, so countries that had USD in reserves didn't completely rid the currency, only reduced its holdings.


This isn't necessarily the case because most commerce transactions are between private parties in the U.S. and Canada if I'm not mistaken. The government can reduce USD from their reserves and it wouldn't be too consequential short term.

for a country to carry out such changes, it will definitely be difficult, because it will definitely cause debate from various parties. But if any country dares to do such an act, and its calculations are ripe, perhaps its actions can be calculated. But it is indeed quite difficult, when talking about replacing a country's world currency reserves, it will definitely be difficult. Because it is certain that a country that dominates its currency, as the world's currency reserve, will definitely not remain silent. So a country that is going to make major changes in terms of currency, which is related to world currency reserves, must certainly be prepared for the risks it has to face.