The world that all money have become crypto currencies issued by government

[tactac]

It is said that central banks plan to release their own curypto currency in some countries,for example Japan.
I know it is quite extreme, but I consider the world that coin and bill currently circulated are abolished, and only the curypto currency issued by the central bank circulates.
I think there are some merits and demerits of this system.

Merit for goverment
· Promotion of utilization of blockchain and smart contracts in various infrastructures
· Reduce the cost of issuing coins and bills
· It is possible to prevent money laundering and crime because of catching a money transaction
· It is possible to confirm the history of deposits and withdrawals of funds and possible to reliably catch taxable objects
· Bribery can be eradicated

deMerit for goverment
· Increases a risk of hacking
· It takes cost to update various infrastructure such as payment systems
· Defining the total supply amount makes it impossible to measure to prevent deflation, and If it does not, it will become inflation
· When equipment is destroyed due to a disaster, it will not function as an exchanging means
· Bribery is eradicated

Merit for user
· There is no need to carry cash
· Reduce the cost required for payment settlement
· Easier transfer of assets in inheritance
· Since transactions are recorded on the blockchain, accounting and tax returns are simplified


I think there are other merits and demerits, so I'm happy if you suggest other ideas.

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the goverment, no matter how convenient it is.

[Ycekezuv]

The fact is that most countries are trying to make their stablecoin, mostly supported by fiat money.

[paxmao]

Coins created by the government would not set a fixed supply, and even if they´d say the supply is limited, I would not believe them. Crypto for governments is jus e-fiat, not real crypto.

[BusyShows]

Government issuing their own version of cryptocurrency might bring some form of stability to the internal market of the coin. On the negatives, it might not follow the true nature of the cryptocurrency and could be a variation of e-currency.

[bob123]

Crypto for governments is jus e-fiat, not real crypto.

This all depends on the definition of crypto..

For me, a cryptocurrency has to rely on public key cryptography. The exact variables (PoW/PoS/.., inflationary/deflationary, max supply, etc..) don't matter.

A governmental issued cryptocurrency would just be e-fiat. But if (for example) it is a fork of bitcoin with adjusted parameters and additional stuff, it still would be a cryptocurrency.
Ripple's foundation can inject 2 times the whole current circulating supply into the eco system. This is 0 decentralized and one entity has full control, but it still is a cryptocurrency (even if it's not a really good one). At least in my eyes.

[LeGaulois]

Increasing the risk of hacking? This is the main reason to see the banks spending million dollars in R&D.
Cybersecurity in which to be proactive is a must, a blockchain is supposed to be more secure than a database, more efficient, time-saving, and so on.

They don't really care about the cost to update infrastructures, it's part of the original investment plan (they think for the long run)and they have the business plan that comes with, money isn't lost anywhere).

Sure the small or medium-large companies may be not able to support the cost, but most don't really have any use of the blockchain technology. The ones that need are the large companies like supply chain, food industry, or financial institutions since they can get the most of the blockchain potential and they have a bigger interest to invest in the blockchain tech.

[hahay]

I am not sure if the national bank will release its own crypto, because so far there are many national banks that continue to contradict cryptocurrency, although it does not rule out the possibility that many countries that support crypto like Japan will implement it.

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the goverment, no matter how convenient it is.

I personally don't mind living like that monitored by the government, because I feel enough concern if I have to deal with the bank, because the funds I get are almost completely and more than crypto. So if the government and bank will release their own crypto, then that is a very good step I think because I as a crypto user no longer need to worry about something, because so far national banks in my country are still opposed to cryptocurrency.

[BitHodler]

A governmental issued cryptocurrency would just be e-fiat.

That's what I think as well. Governments only have to tokenize fiat, which will grant them more control over their financial system than ever before. It's a plus in terms of convenience, but fiat will become even more centralized.

Technically speaking I am dealing with digital fiat already with how I barely touch the actual asset in physical form. I use my debit cards or my banking app to settle transactions on a daily basis.

People in Asian countries in the same way aren't dealing much with actual fiat anymore, it's mobile payment apps that dominate the market, and these will continue to take over with how convenient and fast it is.

People themselves won't notice much of a difference between transacting with digital fiat or tokenized fiat, their apps will make sure of that. The only thing they need to do is unlock their wallet so they can send and receive money.

[hugeblack]

When a third party intervenes, what is the need for cryptocurrencies? I mean we do not need a lot of things like waiting for confirmations, mining, and other things.
P2P is the basis of cryptos, and without it, transactions are Digital money "based on blockchain" which is much slower than the current payment systems.
If you are trying to get the advantages of a misuse system, creating a government cryptocurrency is the best example.

[cluit]

It is said that central banks plan to release their own curypto currency in some countries,for example Japan.
I know it is quite extreme, but I consider the world that coin and bill currently circulated are abolished, and only the curypto currency issued by the central bank circulates.
I think there are some merits and demerits of this system.

Merit for goverment
· Promotion of utilization of blockchain and smart contracts in various infrastructures
· Reduce the cost of issuing coins and bills
· It is possible to prevent money laundering and crime because of catching a money transaction
· It is possible to confirm the history of deposits and withdrawals of funds and possible to reliably catch taxable objects
· Bribery can be eradicated

deMerit for goverment
· Increases a risk of hacking
· It takes cost to update various infrastructure such as payment systems
· Defining the total supply amount makes it impossible to measure to prevent deflation, and If it does not, it will become inflation
· When equipment is destroyed due to a disaster, it will not function as an exchanging means
· Bribery is eradicated

Merit for user
· There is no need to carry cash
· Reduce the cost required for payment settlement
· Easier transfer of assets in inheritance
· Since transactions are recorded on the blockchain, accounting and tax returns are simplified


I think there are other merits and demerits, so I'm happy if you suggest other ideas.

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the goverment, no matter how convenient it is.

Lol it could be still abused as hell. You are underestimating the corruption with media and you are all tangibles of politics can be turned into data. For example if there was merit for government there would still be a lot of people who vote for the "bad guy" that ruins the countries even without corruption in elections the wrong kind of people would be elected.

Media makes sure's to get the public under control, ever country has channels that supports the regime and people who voted for them watches only those which results with them getting votes and in return for your example would get merits. Politics can't be solved via blockchain.

[kingasf10]

The topic of post is being more discussed in government houses. They are considering it as it will be eliminate lot of Money infrastructure but yet we need to improve our security system to prevent hacks. I think that we are taking different meaning of theft and hacking. I am not a master of programming but just want to raise some basic logic point, we can focus on generating wallets and addresses control system, like if hack happens and funds transferred to some other address, system automatically flag it is red, so none can do transaction with it.

[duoleduo]

This is not bad news, we should be optimistic. This shows that the government is consciously embracing cryptocurrencies rather than rejecting them, which will speed up the cryptocurrency globally.

[jackg]

This is not bad news, we should be optimistic. This shows that the government is consciously embracing cryptocurrencies rather than rejecting them, which will speed up the cryptocurrency globally.

Either that, or it means they just want to centralise it so they have more control as to what goes on and we end up with the same system we have now just on computers instead... It's like revolutionising by going back in time .

Since it's a bit of advertising for Jet Cash's fit to talk, this thread was first posted and ammended here: https://fittotalk.com/english-talk/index.php?topic=229.0 if anyone wants any help with their English then don't hesitate to sign up to the site and join us in improving the English of our forum - this also serves as an antiplagiarism reference too.

[tweetbit]

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the government, no matter how convenient it is.

We are living in such a world for decades and centuries. We have no other choice except detached ourselves from reality that is always be untruthful.

We can hide for once and live in this virtual world we think we’re safe and anonymous, but that soon changed if the government will be hard given attention to it. We will be monitored and like robots, we will not be heard.

We either accept it or one of us must run as president of each country and be the one stopping it.

[HabBear]

I know it is quite extreme, but I consider the world that coin and bill currently circulated are abolished, and only the curypto currency issued by the central bank circulates

You should rethink this.

The only benefit of gov't currencies on a blockchain is the speed of transfers IF the gov't agencies don't require people to review these transactions, which they probably will and it will eliminate the speed gains provided by the technology.

What blockhchain use also does is allow the government to track every single transaction made with their currency - is that a good thing?

[magneto]

I personally don't think that this is anything different from fiat currencies that are already being used right now.

The reason is simple, the control of the money supply is still up to the central bank or government which is issuing the token on the blockchain or whatnot, it's in no way decentralised.

Sure, blockchain could be utilised, but the ultimate goal of using crypto in the first place is not just to use blockchain technology, but to have a decentralised form of payment which a government backed crypto does not offer. I guess it is an upgrade from paper money in terms of convenience, but nothing other than that.

[cybernetik7]

It will be similar to e-currency. If countries make their own crypto, it also means that governments give in and indirectly accept decentralized cryptocurrencies instead of rejecting them. Thus, it will make decentralized cryptocurrencies more trustable.

[StarofBTC]

I am not sure if the national bank will release its own crypto, because so far there are many national banks that continue to contradict cryptocurrency, although it does not rule out the possibility that many countries that support crypto like Japan will implement it.

By the way, do you want to live in such a world? I do not want to live in such a world that I can be monitored by the goverment, no matter how convenient it is.

I personally don't mind living like that monitored by the government, because I feel enough concern if I have to deal with the bank, because the funds I get are almost completely and more than crypto. So if the government and bank will release their own crypto, then that is a very good step I think because I as a crypto user no longer need to worry about something, because so far national banks in my country are still opposed to cryptocurrency.

Well, that is something that is still a mystery for now, but I believe in the long run, this is something we will get to start seeing gradually with government and central banks utilizing the blockchain by integrating fiat on it.

We know the world is gradually going digital, so there is no doubt, that at some point in the long run, we will have the governments all over the world, coming up with their own centralized digital currencies, which would probably eradicate paper currency anyway and then we will at least be able to get to see things done different. Nonetheless, it does not really make that much of a difference at the end because it will still be controlled.

[South Park]

The fact is that most countries are trying to make their stablecoin, mostly supported by fiat money.

The real question is who is going to use such a coin? The average person doesn't have any need to use a cryptocurrency created by the government, they can use their cash and if they want to use a digital currency they can just use their debit and credit cards, and people like us that have adopted cryptocurrencies have no need to use those coins either because we have bitcoin.

[darewaller]

The fact is that most countries are trying to make their stablecoin, mostly supported by fiat money.

Yes, what else would you have expected ? Government will obviously not come up with a decentralized protocol which will probably make them lose all the necessary controls they can have and in that case, what we are just going to end up seeing is the replica of fiat on the blockchain. However, this is something that would really be a whole lot better for the government in the long run when it comes to the cost of having to print paper money, and then going with the blockchain that would even bring about some centralized control and transparency in a way, I believe those are something that would still benefit the country as a whole eventually.