In the future, will fiat currencies be necessary in the world?

[ulhaq]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

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[Parodium]

Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.

[avikz]

Quite an economy focused statement!! However, I believe fiat is not necessary for the world but a medium of exchange is! Otherwise how would you determine the value of any particular goods? So a medium of exchange is needed which can determine value of anything. Crypto can handle this job splendidly well!

Now the question is, will any government allow it to happen? The answer is NO!! No governments will let go the power from their own hand to some decentralized currency system. It involves many other risks which can be fatal for any economy. So probably in future cryptos will be allowed to mix with the economy but that won't be allowed to replace fiat. Probably fiat currency will have a digital version as well in future but crypto will never take the hot seat by replacing fiat.

[zenhu]

In my opinion of course, fiat is necessary at this moment, because not all people in the world can access cryptocurrency. But if you talk about future I think cryptocurrency can replace fiat, not near future of course, but someday that thing will happen sooner or later. Cause fiat replace gold in the past why cryptocurrency cant, right?

Fiat currencies definitely aren't necessary

Like for example I want to buy  a single cupcake on the street worth of 1 usd but need pay 1 usd more for the fee? Or receive my paycheck this afternoon with bitcoin and wake up the next day just to find out my money decrease from 5k usd to 4k cause market volatility? At this moment I think we still need fiat money. Until there some cryptocurrency that solves the problem about confirmation time, fee, and stable price.
don't consider me serious though im not an expert

[xIIImaL]

Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.

It is the rule made by the Rothschild family. If you need to make the changes on the cryptocurrencies investment then you need to go with the government regulations for making the Bitcoin as a legal moeny to use.
If all things resolved and we made the bitcoin to be a payment option then you will be rewarded.
Centralized and decentralised medium is the problem here with these people.

[suzanogbomo]

Cryptocurrencies certainly offer some advantages that are absent with fiats, however, fiats play another role for government as it is a tool to control the supply of money and as such control the economy, that will be difficult to replace with crypto in the future

[Pearls Before Swine]

These are all good ideals in the op, but society is a long way away from using crypto for everyday things.  And I for one would not want the government snooping my crypto usage, which they would be sure to do if I used it for taxes and everything else.  There's even more of a permanent record with bitcoin than there is with checking accounts, unless banks keep records forever, which they don't.

So yeah, fiat is definitely necessary.  Think about this.  Bitcoin is not quite 10 years old, whereas the US dollar is as old as the country itself.  There is no way the usd is going to be replaced with bitcoin or any cryptocurrency in the near (or even far) future.  What we can hope for is some slow progress.

[StGermain]

Fiat currencies definitely aren't necessary, there is an increasing trend towards digitization of currency, and blockchain based currencies are just the next generation of this. The problem is that Bitcoin came out, and everybody treated it as the successor to fiat currency, rather than an incremental improvement on digital currencies such as Paypal and Skrill. I think that if Bitcoin was never invented, but somebody like Paypal had implemented a blockchain technology first, then we wouldn't be in the rivalry scenario that we're in now.

There is no need of fiat, unless you decide to live in the real world and have to pay a few bills to those old anticuated companies that insist in getting paid in dollars.

[adzino]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

Well, if government starts collecting taxes through crypto, then you will have to strictly regulate it. The more regulations are imposed, the less decentralized the system becomes. This is an issue right now. And yes people can receive salaries in crypto, but what if the value falls and the receiver starts to suffer? They can even sue their employer if the value falls down there minimum wage.

[Temeber]

Yes, we need, because it is simply convenient and comfortable to pay both in the state and with others

[Uhde]

of course fiat is necessary. because fiat is more or less safer currency comparing with other alternative currencies such as crypto currencies. they are mostly backed by governments and also easy way to make payments.

[Byzantium101]

Quite an economy focused statement!! However, I believe fiat is not necessary for the world but a medium of exchange is! Otherwise how would you determine the value of any particular goods? So a medium of exchange is needed which can determine value of anything. Crypto can handle this job splendidly well!

Now the question is, will any government allow it to happen? The answer is NO!! No governments will let go the power from their own hand to some decentralized currency system. It involves many other risks which can be fatal for any economy. So probably in future cryptos will be allowed to mix with the economy but that won't be allowed to replace fiat. Probably fiat currency will have a digital version as well in future but crypto will never take the hot seat by replacing fiat.

Not a chance of replacement, yet  a very high probability of having a very relevan influence in the economic policies of the countries in the near future, since it prevents mismanagement,

[vasilvas15]

Each country has its own development features, and they need their own currency for this. To equate all countries with one currency will be very unfair, and before that, all countries need to be brought to the same economic denominator.

[Dobrode]

The currency in the world is definitely needed, no matter we are talking about a new coin or money transfers or a single currency around the world

[doolittle]

in the future, will there really be a need for fiat currency? Government can collect taxes in crypto, determine how to allocate it, and spend it in crypto. Ppl can receive salaries and do all commerce using crypto. Loans can be done in crypto. Fundraising can be in crypto. Sure, problems have to be worked out in terms of scalability, does it have to be completely decentralized, etc, the value has to become more stable. But theoretically, is there any reason to have fiat in the future?

It has been established that governments can now do taxation without representation by printing more money (which is a tax on everyone holding the currency), instead of trying to get a bill passed that allows it to increase the tax rate. With crypto this would be no more. All increased taxation would have to pass a vote.

From an economic standpoint, the idea that a country can stimulate its economy by adjusting interest rates is tenuous. There is just as strong an argument that lowering interest rates has caused speculation and bubbles, with calamitous results. In a crypto market economy, capital will flow from where it is needed less to where it is needed more.

I think it would take people 10 years to forget about cash and Fiat money. The younger generation can now shape the future, and Adults are very far from crypto, it is important for them to touch the money, not those that are somewhere in the computer

[Devawnm367]

Not necessarily but also keep in mind that not everywhere in the world do people have internet!!, also some people in this world will NEVER be able to afford internet, making crypto useless to them!!!

[Noobaru]

In my opinion, absolutely no since I would be fine with cryptos only. But people (especially old ones) are used to fiat and "paper money" in form of banknotes so it would be hard to convince them to use cryptos. Some are even afraid to use credit cards as well.

[nabinkhadka]

This is one of the reason Bitcoin price is in thousands when it start from just a penny , because those who are deep in btc know that it can or it's foundation technology can lead to the time where there is no any need of fiat currency.

[Fire316]

  I think fiat currency is still necessary in the world even digital currency already exist because not all the people specially those old people is not capable or can't access on digital currency. Another one,as long as volatility is there in digital currency it would not happen that it will rule all over the world. Also not all countries are already using digital currency.

[BitHodler]

The more regulations are imposed, the less decentralized the system becomes.

If you avoid dealing with centralized services you won't have to suffer from anything, but people as convenience hungry as they are, will always rely on centralized services to take care of storage.

You shouldn't forget that most people aren't capable of managing their own wealth, which is why they will always rely on banks. Benefit of that is also that their wealth is insured up to a certain amount in case the bank implodes.

What insurance is there with crypto if you mess up? Losing funds in this case means losing funds for ever. For that reason I do understand why people will always keep using fiat and banks.

And yes people can receive salaries in crypto, but what if the value falls and the receiver starts to suffer? They can even sue their employer if the value falls down there minimum wage.

If the employer is clear with its terms for payments in Bitcoin and the employee agrees with all these terms, there is no one he/she can sue.