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

[Direwolve735]

Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

[DPrillio]

Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

I think as of now that not everyone has the opportunity to access and use internet then fiat is the best option to make transaction and all mode of payment. The fact that crypto currency is useless without internet but I believe someday if crypto currency is available all around the world then fiat will become obsolete. But current situation the fiat currency is necessary for more convenient and easy way of payment.

[bfreetogo]

in my opinion it is still a bit necessary, what if you got somewhere and there is no internet or electricity but you still need to pay for something?
if there only were cryptocurrencies for wich you need internet to send a transaction then you would be stuck to buy the thing that you would want or need in that situation

[Hell-raiser]

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?

Let's set things straight. It had already been tried and didn't work (with gold as money). Any deflationary currency (gold, bitcoin, whatever) would be massively taxing real economy. People who have a lot of tokens representing money would be profiting from just holding them, that is by doing nothing, from people who actually create goods and services, bringing value to the table. Fiat is not perfect but what it is perfect at is taking from idlers a competitive advantage which they otherwise would have just because they happen to be rich.

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.

Yes, it can be considered a tax on those who bring nothing to the table. The answer is simple, don't hold the currency.

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.

As said above, fiat is far from being perfect which is heavily aggravated by its misuse and abuse. But a deflationary currency as a means of exchange would mean a quick and painful death to the whole economy.

[sieemma]

Fiats are really a necessary part of our lives. These are what everyone generally accepts before exchanging an item with you so without it, life would have been miserable because we would have carried our fowls, gold, cattle, and many others before sending getting an item we needed but everything is simple with fiat.

[Finestream]

in my opinion it is still a bit necessary, what if you got somewhere and there is no internet or electricity but you still need to pay for something?
if there only were cryptocurrencies for wich you need internet to send a transaction then you would be stuck to buy the thing that you would want or need in that situation

I think if that time comes that digital currencies are already adopted,the government then will also be aware that it needs internet connection for a successful transaction.Surely they will find ways for that maybe putting up wifi in every areas so that people will find it easy to transact using digital currencies.

[boyshx]

I guess they are far better than crypto currencies and they will always be because they have made with proper trial and errors over the time. First there were stones and now today we have advised anti-cheat notes and coins which has the accurate detailing about it. I guess such sort of currency will always be wanted by the people and this society. Its use is very simpler than others. Crypto is not that fine right now, its not that better because it has very less characters which are any closer to the fiat. Centralised fiat is always best because its far controlled and straight currency.

[martinholly167]

is this has the same meaning as changing fiat into a digital and changing its name to "crypto currency" by also not printing bank notes

[frowsiter]

Fiat money has a constant recognized value. It is money that is liquid assets. Thanks to fiat money, a measure of the value of almost all goods and services is determined. To date, fiat money remains the most recognized and understandable for most financial instruments. Therefore, for the time being, they are necessary for the modern world, despite the increasing distribution of crypto-currencies.

This is something unique and indeed true fact. I guess there is no currency that is as liquid as fiat is. Its centralisation is keeping it at constant value and thus we can surely put a price tag over the goods and services with constant value. This is the most important thing one can have as you dont have to have hassle in daily life as to check up the value of service and then decide how much coins you have to spend. While crypto currencies are far different than that and everyone knows they are too volatile to be used steadily. So yes, fiat is important.

[Ezenwanyi1]

Yes.
Fiat is the vehicle with which  facilitates the progress of econimic activities across the globe.
So it is very important.

[tepakpak]

I think it's still necessary because Fiat has contributed a lot to a country, fiat symbolizes currencies in various countries. Although crypto actually provides convenience, fiat is still needed because in this world there are still many poor people who do not have technology.

[Reality5]

Fiat currency is still very important because not all situations you can use crypto.

[timerland]

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.

What you're proposing is essentially a government controlled crypto, where they are able to keep an eye on the network in order to manage taxation better, introduce monetary policy more directly, etc. etc. It's definitely something that is foreseeable.

In that case, wouldn't it still be a fiat currency, as there isn't a limited supply and still controlled by a government? It's just in a different form. Not in paper, but on the blockchain.

Fiat is definitely not necessary for the economy to function. I mean, humans did not start using fiat until a few centuries ago, and before that, commodity based currencies are used and there were much less economic crises, in fact. A bitcoin based economy wouldn't be impossible at all. However, governments round the world will push their currency and try to back the value of their own currencies, regardless of what progress crypto adoption has made.

[Dread Pirate Roberts]

There are still many people who are not aware of technology at this time and there are still many who do not know what crypto is and even things about digital financial standards today. and also every country has its own regulations with their national banks and their financial regulation. so fiat must always be needed in every country .

[lorapalmer]

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.

Taxes should be paid in order to support the functioning of the country and its infrastructure. The greatest debate has always been about the rate of the tax (whether it should be a fixed tax, say, 15%, or a progressive one starting from 10% and to infinity).

[Blackrain13]

  Of course we still need fiat currency. Not all countries accept and use cryptocurrency. Not all we need cryptocurrency can make it. It is not widely use as payment or in other forms,unlike fiat that we can use anytime anywhere.

[atliens99]

Right now they are needed becaues governments only tax their own currency for taxes but I hope in the future all governments  across the earth will take btc as payment.

[becak mesin]

It is still necessary for future. We all know that now the trend is digitaliation and all people activities and need change to digital. However, in some aspect the manual and paper money is needed. It can not be removed or replaced by others. Both should be work together.

[heartwreck]

For me at this moment, yes fiat is necessary in the world. Because not all people are aware and know how to use cryptocurrencies.

[mornabo]

in my opinion it is still a bit necessary, what if you got somewhere and there is no internet or electricity but you still need to pay for something?
if there only were cryptocurrencies for wich you need internet to send a transaction then you would be stuck to buy the thing that you would want or need in that situation

Seeing that there are no fiat options that can be used anywhere and as easy as using Fiat, then Fiat will be very needed, who is the best fiat currency option? crypto? crypto certainly has not become a mainstream, many people still don't know it, fiat is still not replaced