Will governments create their own cryptocurrency that will replace fiat?

[_Legendary_]

I think this will continue to be a contradiction, the transaction certainly becomes easier and certainly the government can control the coins in total, but I'm sure many do not agree because they are worried about not having more access.

[layoutph]

Few months ago Russia's Prime Minister has contacted Vitalik (ETH's founder) for a meeting. Then afterwards an echo that Russia will soon to create it's own cryptocurrency become a trend in Social media.

Well I guess this is the future. All countries will create their own crypto. So better start now and enjoy soon.

In the next 100 years, do you think Governments will create their own cryptocurrency or digital currency that will replace fiat currency, i.e. coins, paper money, the paper dollar,  etc.?

If it does happen, will it be like bitcoin or will it still represent gold like how today's money works?

[oegarod]

I think this will continue to be a contradiction, the transaction certainly becomes easier and certainly the government can control the coins in total, but I'm sure many do not agree because they are worried about not having more access.

Yes, there are governments that are into plans of generating their own digital currency. Recently Switzerland made its own cryptocurrency just by giving digital form to the paper money that has been used around the country. This has been tested, but not implemented all around.

[waynechong1995]

Only after blockchain technology is fully matured was able be understood its people. But i believe that it could happen in decades

[nemagia]

No, I think that the creation of such a crypto currency will be useless. Dollars for example already exist in electronic form, and the creation of more such several currencies is simply meaningless.

[Quidat]

They would make their own coin not a cryptocurrency but their own centralized coin but i dont think they would do such thing on switching totally on e-currency from paper currency. It would really takes time for a certain country would adopt such thing and also they cant make any transactions with other countries since they do have e-currency and others do have still local fiat paper currency.

[Humvee998]

I'm just thinking now the possibility of government issued crypto currency (maybe blockchain technology) and the miners are the banks only, this way government is not putting banks out of business and there can still be central bank who controls all the banks and issue order if needed more money in the economy (if Etherium based which I think the preferred type of all governments).

This can even go in parallel with government existing fiats so people can have two choices (good publicity for the government).

But the question still remains the same, if ever government wants to push on this, "how can they know who owns what?" If this can be solved I think government will definitely step into the world of crypto currencies....

Any comment/reaction/argument on this?

   

[roomfirst]

In the next 100 years, do you think Governments will create their own cryptocurrency or digital currency that will replace fiat currency, i.e. coins, paper money, the paper dollar,  etc.?

If it does happen, will it be like bitcoin or will it still represent gold like how today's money works?

Why government need to create their own cryptocurrency ? It's not important and they don't need it, i think the government will make a digital money for the current fiat. It's not always cryptocurrency, i also doubt some countries will use bitcoin or other cryptocurrency. 1-2 country maybe yes but not all.

[Svelto]

Yes I see the possibility of governments creating fiat in crypto forms. It is much convenient and we do not need to carry cash around.

[severaldetails]

I do not think that a government will create a new cryptocurrency and establish it as its fiat.
What I can imagine is that the current fiat is going to be cashless.
Maybe even with a blockchain technology. But without miners.
I think it's a nice idea if you have a cryptocurrency that is not influenced by miners and their goal to earn as much profit as possible.

[channingwilmer]

it is hard to know. I have heard that the chinese are working about this issue but right now, I still not see anything. It is quite interesting that the CHinese government will control the private keys if Chinese cryptocurrency is created. Well, time will tell. But I believe that it is hard to come true since the cryptocurrency is based on the decentralized system

[error08]

In the next 100 years, do you think Governments will create their own cryptocurrency or digital currency that will replace fiat currency, i.e. coins, paper money, the paper dollar,  etc.?

If it does happen, will it be like bitcoin or will it still represent gold like how today's money works?

Why government need to create their own cryptocurrency ? It's not important and they don't need it, i think the government will make a digital money for the current fiat. It's not always cryptocurrency, i also doubt some countries will use bitcoin or other cryptocurrency. 1-2 country maybe yes but not all.

Government didn't, but central banks already did.
A digital form of fiat currency which people use it in daily life through cards, issued by banks.
It's consider as digital obviously, even though not similar such as cryptocurrencies. Whatever that central banks may create but still centralized can't compare with bitcoin.

[Afnan_faizah]

It's really possible, most of them are confusing about how to treat bitcoin. So they will create their own coin that they can control.

[seraph_the_wise]

I believe they will, its only a matter of time. Driving factors include lower costs, capitalizing on the benefits of blockchain technology to hold their grip on power, competing with other states (with their own economies of national cryptos), more effective tracking of tax revenues. I don't think they will fully replace the national fiat though, acting more like their "sanctioned digital equivalent" and being pegged to the fiat currency, as an attempt to stabilize its value. 

[Osarman]

I don't think bitcoin can replace fiat and i doubt any government would do that. Imagine all of the government's crypto stored in a single wallet and it got stolen. It would be too risky and it would put the entire country's economy in danger. I daresay bitcoin and fiat have their pros and cons but they cannot replace each other.

That’s true. No government is going to take this risk. At utmost, any government under the pressure of its public can make these currencies legal and give them the status of secondary international currency. Digital currencies have to be legalized and adopted by governments if they want to survive.

[aardvark15]

It maybe the last thing a government want, ever since the ancient kings who rules the world control the flow of money to control its people and it never changed up to now. Today if a government adopt blockchain technology to create their own cryptocurrency they are practically letting loose control of money and therefore the people for sure they dont like that to happen right? So if they create one for sure it will be like another fiat or digital fiat. One obvious reason they wouldn't fully adopt blockchain technology is that it will kill the whole banking industry of the country.
There is a news that China is going to start their own cryptocurrency (link below) but I think they don't know yet how it can be done, no details in the news.
But for the sake of argument, let say many countries developed their own derivatives of Bitcoin, for sure their crypto will be pegged to Bitcoin (like the USD of all fiats) and if that happens Bitcoin will still rule....

https://coinidol.com/china-creates-its-own-cryptocurrency/



     

I think we will see countries starting to make their own cryptocurrencies so they can control it. This will be different than Bitcoin however because theirs will be a private blockchain that they can control the way they want.

Bitcoin is different because it is a public blockchain or an open ledger that no individual has control over. It is specifically designed to be difficult for a government or group to control.

[Monnt]

Yes I see the possibility of governments creating fiat in crypto forms. It is much convenient and we do not need to carry cash around.

That answer doesn’t make any sense at all…government has nothing to do with crypto currencies. And what do you mean by to help us not to carry money around? Doesn’t your bank offer an online service? Maybe they don’t. But here in my country, they do. And you can send payment to someone from your bank accountby just using your mobile phone.

[Franky00]

I do not see any sense in creating a crypto currency for each country, because many of them will prove to be a failure because of a lack of demand. Now many different crypto-currencies are struggling for the primacy and the creation of new ones is doomed to failure.

[doubletoilandtrouble]

It is in government's best interest to replace fiat currencies with digital ones as this will eliminate illegal activity. Taxes will have to be paid because the government will be able to track all transactions. Why wouldn't governments want this?

[Xenophoto]

I do not see any sense in creating a crypto currency for each country, because many of them will prove to be a failure because of a lack of demand. Now many different crypto-currencies are struggling for the primacy and the creation of new ones is doomed to failure.

Well demand wouldn't be such a problem for them if they stop accepting paper money and start accepting only the cryptocurrency that they have made. They can start by making it impossible to use paper money to buy something but really easy to convert them into cryptocurrencies. One thing, the government is different from the strangers here that makes altcoin projects. They don't need investors at all as they are the government. It's not a project, but rather it would be a new regulation.