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

[Sadlife]

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

[sidodadii]

yes, it is. you can say that crypto is more and more than fiat. but im sure high percentage crypto's user just for make money, not for daily needed like pay bill, buy donuts or the other stuff in society. comparing between fiat and crypto is like fiat and gold. its 100% will gain profit when you have gold because sometime the value of it can increase. fiat just for exchange. so, you need fiat to decide the price of crypto too

[NevejElad]

That is true fiat currency are still necessary in the world as of now, because fiat currency can still be utilized especially in the areas ,where internet is not available and we can not transact  on line business in any form because lack of this internet access , so this could the time that fiat is still usable for exchanges and in the market.

[thunderbitz2717]

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.

If I am going to compare it now in our generation my answer is Yes! Fiat still needed now because crypto currencies is only useful because of the internet we had it now but without it, it will be useless for sure. Although blockchain was very trending nowadays due to the high technology we have so far, that's the fact reality which I saw its true happens.

[Fatanut]

yes just like the gold times during the old days, remember gold is valuable up to now and let us not forget the fact that there is still a lot of countries or part of countries that don't have electricity.

But gold and fiat isn't the same thing. Gold, silver, copper, and bronze were used as a currency before because they are precious metals and have to be mined. It serves actual purpose. These metals have their different uses and they are also priced on their scarcity. Fiat, on the other hand, is literally just paper. The only thing that gives it value is the belief of the people that it has a value. But when it comes to its use as the material that it is, it's just paper, nothing else. It's not like gold which can be used in the components of our devices. It's not a good electricity conductor either. Sadly but this meme posted by @nikflossus on Steemit is so true:

Fiat currencies are important to every country and the whole world. Not all areas around the globe can enjoy using crypto as a medium of exchange since not all are countries are having advanced technologies. Cryptocurrencies can only be accessed if have the electricity and internet connections. So to those areas having none, then crypto is useless unlike fiat money as long as you have it in your hands with or with electricity and internet connections you can use it anytime and anywhere.

But the thing about fiat is that once people start using cryptocurrency and you're left with fiat, you're basically left with a piece of paper. Its value is based on our belief that it has value (like I said), so once that belief is gone or is moved to a different medium, then fiat loses its power and goes back to what it actually is, a piece of paper.

[Badu1]

I am used to fiat currencies although I participate in cryptocurrencies.I can't doubt or defame fiat currencies because they are also needs in everyday transactions we make.

[virendarnagpal]

Till date all the people of the world have not access to crypto currency.  Because of lack of knowledge , non availability of necessary equipment to use crypto, electricity and  or internet problems; it is not being used by all in the world.
Secondly everything commodity; service is being measured in fiat currency.  Then if fiat is absent ; how we will be able to determine the value of commodity and crypto for transactions.  So fiat is required though crypto will be used more in future.

[valentinen39]

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

Fiat is very necessary because not every people does have the potential to invest on cryptocurrency so they will not be able to have transactions with other people if they will not be using fiat.

[RedzoneASE]

Ofcourse it is very important for now. Knowing the fact that not all the people can access new technology like those people who are on the rural areas which don't have the means to have new technology materials.

[Yurkov]

Ofcourse it is very important for now. Knowing the fact that not all the people can access new technology like those people who are on the rural areas which don't have the means to have new technology materials.

But for me if world will move suddenly in crypto (of course when everyone will know how this technology works and how they could operate with their wallets) it won't be the end, after some time people for me could get used to how it work.

[Unnicew03]

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.

That is a mystery yet to unfold. No doubt we all are aware of the potentials of Crypto-currencies. We have come to the understanding that cryptocurrency can serve virtually the same purpose of Fiat currencies. Infact, it can do better. As,  business transactions will be faster, inflation will be more controlled etc. The problem now is tha, Are Governments ready to pass the adoption of Crypto into use?. It is as easy as them declaring it a legal tender, but probably they think about how useless the existing physical currencies already in circulation will turn.

[Unnicew03]

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

Yes, that's true about Fiat Currencies, but have you considered the prospects of Crypto-currency. Prospects development of cryptocurrencies exist, despite the fact that attempts to introduce a digital currency have taken place since the advent of the Internet, in fact, the use of digital money is in a moderate way. The opportunities of using cryptocurrencies include: the absence of inflation, the anonymity of the user, uninterrupted operation of the program in a server mode, quick transfers anywhere in the world, no counterfeit, ease of storage, the possibility of splitting into parts, and there are no fees for transactions, low fees for the exchange.

[pathapoddo]

Fiat money is necessary to us. It carry a country's nationality, dignity etc. And by this side online currency also show that the country's people are digital or modern. But absolutely not be avoided fiat money. Because it our dignity to other that we have our own money.

[sempak bulong]

Fiat currencies are still needed because they still exist and have not been completely replaced by other currencies. This is because fiat still provides comfort for people with a low economy.

[Daseento]

This is simply synonymous to taking power away from the government. An absolute absence of fiat currency in favour of cryptocurrencies poses some threat to government control of both monetary and fiscal policies which are both important economic control mechanisms. Moreover, it could lead to increasing laundering of funds, this are some of the reasons why I don't see crypto replacing fiat in its entirety in the nearest future.

[avarnet]

Yes fiat is necessary for the economic growth of a country even if we like or not. Fiat currency has it's own merits as well. Because it can be use for loans and to pay your taxes physically. Both digital and fiat currency can coexist, both has it's pros and cons and even help each others growth. bitcoin for me is another source of payment that is decentralized and free of control.

That's right what you say, because a country must need fiat currency even though there are crypto currencies, because the fiat currency is still used as a means of payment in buying goods.

[ulhaq]

yes just like the gold times during the old days, remember gold is valuable up to now and let us not forget the fact that there is still a lot of countries or part of countries that don't have electricity.

But gold and fiat isn't the same thing. Gold, silver, copper, and bronze were used as a currency before because they are precious metals and have to be mined. It serves actual purpose. These metals have their different uses and they are also priced on their scarcity. Fiat, on the other hand, is literally just paper. The only thing that gives it value is the belief of the people that it has a value. But when it comes to its use as the material that it is, it's just paper, nothing else. It's not like gold which can be used in the components of our devices. It's not a good electricity conductor either. Sadly but this meme posted by @nikflossus on Steemit is so true:

Fiat currencies are important to every country and the whole world. Not all areas around the globe can enjoy using crypto as a medium of exchange since not all are countries are having advanced technologies. Cryptocurrencies can only be accessed if have the electricity and internet connections. So to those areas having none, then crypto is useless unlike fiat money as long as you have it in your hands with or with electricity and internet connections you can use it anytime and anywhere.

But the thing about fiat is that once people start using cryptocurrency and you're left with fiat, you're basically left with a piece of paper. Its value is based on our belief that it has value (like I said), so once that belief is gone or is moved to a different medium, then fiat loses its power and goes back to what it actually is, a piece of paper.

This is a very good point, because while I believed fiat might be necessary because of electricity use, now I see that it is not necessary. People could use crypto + gold (as a backup when electricity goes down, or for small purchases). Or even other commodities like silver could replace fiat currency in the presence of crypto.

[seniorita]

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 don't think world really need fiat currency, it can be changed by other currency such cryptocurrency in future or maybe newly created currency. But like you know, transaction using cryptocurrency need internet, not every country have good connection and some people maybe not know about it, so if cryptocurrency can solve this problem first, they might be the real future currency.

[rainezerr]

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.

Fiat is only necessary because not every people is capable on investing on cryptocurrency, that is the reason why people should not fully commit to cryptocurrency and still use fiat as of the moment.

[nidacoinlove]

Well no doubt that crypto has every sophisticated system what a common man expect from it but apart from it like everything it has it's own positive and negative aspects. Crypto is convenient for long distance transactions but for a direct face to face payment or for on the spot payment it is not suitable.
It needs a device for both the parties to send and receive payment also it will need a transaction fee for every little bit transaction which is not practical at all. Therefore fiat is best for such kind of payments. Like cryptocurrency we can't deny that fiat resistance is needed.