Government-issued cryptocurrencies...Are they the Future?

[Abiky]

Over the past years, we've seen how the Blockchain industry has grown to levels far beyond reach. Its first application was digital money (Bitcoin) within 2009. Then, its applications were expanded where now it's possible to prove ownership, store data in an immutable form, and even vote without the possibility of fraud or corruption. With the advent of smart contracts, Blockchain has become more powerful than ever.

Governments and central banks have realized the benefits of this new revolutionary technology, which explains why they've started to explore Blockchain tech more thoroughly. Now, some governments have announced plans to launch a digital currency of their own, while others have already done so. Venezuela has created its own digital currency called "Petro", while China is already designing its "digital yuan". Before we know it, physical cash will be no more as our money will be shifted towards the digital realm.

But, we'll have to see what the outcome of government-issued digital currencies will be as Blockchain technology is proven to have its own limitations (such as lack of scalability and privacy) which makes it terrible for mainstream finance.

Nonetheless, do you think that government-issued cryptocurrencies are the future? Or will it be just an idea that will pass away over time?

[1713926226]

1713926226

[1713926226]

1713926226

[1713926226]

1713926226

[mr-coin]

We should know very well that governments will continue to support centralization. It will not create a coin that supports anonymity or untraceable. This is against the government system.

[petrcoin]

It could be possible that Government-issued crypto will become part of our future since others would prefer it especially on the business

sector which are bound by regulations and needs to be compliant. I also assume a mix of these state crypto's together with other legacy

coins go hand in hand that will form part of our immediate future!

[shadow12348]

now it's possible to prove ownership, store data in an immutable form, and even vote without the possibility of fraud or corruption. With the advent of smart contracts, Blockchain Bitcoin has become more powerful than ever.

This is true only when the blockchain underlying the crypto-currency is open and accessible to anyone, i.e. decentralized, i.e. fraud and corruption cannot occur because the network is large enough that collusion to alter the state of the blockchain is impractical.

Now, is this what a government is/wants?

[DarkDays]

So far, I don't think I've seen any reports that a major country is planning to issue its own cryptocurrency. As of yet, I've only seen Venezuela and I believe Antigua too.

However, I do believe that there will be a cryptocurrency representation of most fiat currencies in time, however, they will almost certain run on a permissioned blockchain, and simply be a stablecoin like Tether, rather than a new unit of value in and of itself.

[marcbitcoins]

If a government will create their own crypto currency then the future of it will depend from their own people support. Even it will not become a successful in the entire crypto market when launched but if it was fully supported by their people then it will be surely it has their own future. Is just like the UK pound that did not relying on Euro currency because it has the full support of the English people.

[Abiky]

So far, I don't think I've seen any reports that a major country is planning to issue its own cryptocurrency. As of yet, I've only seen Venezuela and I believe Antigua too.

However, I do believe that there will be a cryptocurrency representation of most fiat currencies in time, however, they will almost certain run on a permissioned blockchain, and simply be a stablecoin like Tether, rather than a new unit of value in and of itself.

The most likely outcome will be that governments will use a permissioned (or private) blockchain for their own needs. There are so many benefits that Blockchain technology provides, which are too hard to ignore by worldwide governments. They just need to establish a proper regulatory framework in order to allow the blockchain industry to grow in areas far beyond reach. Considering that it's been only 10 years since Blockchain's inception, a lot of progress has been made in such short time. As far as I know, governments are still researching Blockchain tech looking for ways how to implement it towards our current economic system. Once they know the ins and outs of the Blockchain, they'll launch a digital currency effectively replacing physical hard cash as we know it. People will find it hard to adapt towards this change (especially old generations), but they'll become accustomed to using digital money over time.

In terms of the government-issued currency's value, there will be not much difference after all. Everything will be the same, except that money will become completely digital and versatile like never before. It would be surprising to see big nations like the US and Russia announcing their own digital currency within the not-so-distant future. Eliminating physical cash in its entirety will prove to be beneficial for the world's environment (and the government too as they won't have to deal with printing money, and other issues). Hence, it may not be long before government-issued digital currencies become a reality within the future. Just my thoughts

[Tylev]

Governments will issue their own cryptocurrency and there is no doubt about it. It will most likely be in the form of stable coins of their own national currencies or several currencies of different states. I would not say that this is the future, but such a cryptocurrency should be widely used and become one of the common means of payment.
If you look at the reaction of the world states about the appearance of the Libra coin, then it is clearly visible that states see how big such a cryptocurrency can have on the global financial system.

[rosezionjohn]

.............Eliminating physical cash in its entirety will prove to be beneficial for the world's environment (and the government too as they won't have to deal with printing money, and other issues). Hence, it may not be long before government-issued digital currencies become a reality within the future.

I do see governments having their own digital currencies in the future but to completely eliminate physical cash, they (governments) have to deal with fixing their own internet connections first or make it possible to send digital currencies offline.

[setialovers]

.............Eliminating physical cash in its entirety will prove to be beneficial for the world's environment (and the government too as they won't have to deal with printing money, and other issues). Hence, it may not be long before government-issued digital currencies become a reality within the future.

I do see governments having their own digital currencies in the future but to completely eliminate physical cash, they (governments) have to deal with fixing their own internet connections first or make it possible to send digital currencies offline.

Currently various countries have tried to reduce the circulation of banknotes in the market by regulating digital money. Cryptocurrency made by the government will be a necessity because the government sees the potential of cryptocurrency to avoid counterfeiting money.

[TheUltraElite]

They are definitely not the the future. Bitcoin is.

Governments have been trying to develop their own cryptocurrency in order to draw their population to it than focus on bitcoin. This is their motif and I am sure most of the critical minded people have already realized this.

Although it may seem strange but Petro is also the same, though the good thing is that their economy improved by its usage. If you ask me, I would not invest my money in any government sponsored scheme but only in bitcoin.

[kindbtc]

China is already coming up with their state owned and controlled cryptocurrency and after they launch it successfully i think every other country will follow. This indicates that future is going to be completely without paper money and this will also help in adoption of truly decentralized real crypto like btc and eth etc so i think huge market surge is comong in next few years.

[Mr Zet]

It's more complicated matter, cause we apply here to the question what basic idea lies behind the cryptocurrency. If we focus on the aspect of decentralization, then governments don;t have anything to do with crypto. Although, if we describe crypto just as virtual assets, then government may use this idea to promote itself as modern inistitutions. But let's be honest, such approach will be similar in shape to Libra all newly announced Venus, and in its very base it will be just stablecoin based on national currency, so using it won;t be different from paying with credit card.

[ivaf]

I think that cryptocurrencies created by governments will exist in parallel with fiat currencies. Some time. And after, it seems to me, something new will appear, some further development of the blockchain and electronic payments.

[kidbounty]

We should know very well that governments will continue to support centralization. It will not create a coin that supports anonymity or untraceable. This is against the government system.

I agree with you, the government will not make crypto coins. they would not want to support decentralization, because that would certainly hurt the country's economy. the government will definitely find it hard to collect tax. but there is still the possibility of the government using blockchain technology but not in the financial sector.

[cherryganda]

FIat facing so many problems now and economics of most country are falling down even they the technology are getting better or at its best as of now.
Cryptocurrency will be the answer and soon every country will have their own!

[CryptopreneurBrainboss]

They aren't the future in the essence, any government issued cryptocurrency would just be like Libra, meaning they would be stablecoin with less volatility, centralized blockchain with anti-privacy operation etc. Their issued cryptocurrency would be boring but they future is never boring that means they can't be the future. Bitcoin volatility nature is one of those features that's attracting new investors as they see more chance of profiting from bitcoin then investing in stock or savings in banks.

No doubt, government will try to win over people with their proposed cryptocurrency but with time their scam will get exposed just as the fiat currency has been exposed.

[Lanatsa]

Nonetheless, do you think that government-issued cryptocurrencies are the future? Or will it be just an idea that will pass away over time?

We cant say that it wouldn't have a future because we are totally opposed to this thing but sadly this one had a bright future.Why? People who do stick to traditional system
will definitely use these government issued coins and hence these are crypto yet these ones are heavily centralized and this isn't totally different from traditional fiat system but this time they do just in line with the hype and tending to create their own.Banning all decentralized tokens and they insert out their own coins to be introduced to masses.
They do have the power on blocking the market and introduce their own and benefit with It since crypto currency is already making some buzz at the moment they do make use or utilize this popularity to blind up those people who loves to be always under the radar of the government.

[avikz]

There is no doubt that we will start seeing a lot of governments issuing there own currency in digital format. Even countries like India is planning to issue a digital version of their own currency which will be known as digital rupee.

Sadly government controlled digital currencies will take over the Fiat market slowly but steadily in near future. But I would not call them as cryptocurrency, rather they will be just a digital representation of centrally controlled Fiat currency running on a private blockchain.

Remember, the rules of a private blockchain can be written for their owner's benefit. Probably the government will allow every Bank branches within their country to act as master nodes to maintain the scalability of the chain.

Technical challenges and the possibilities are a different story all together! But government controlled digital currencies will certainly take the centre stage of the economy within a few years of time.

[furball64]

Over the past years, we've seen how the Blockchain industry has grown to levels far beyond reach. Its first application was digital money (Bitcoin) within 2009. Then, its applications were expanded where now it's possible to prove ownership, store data in an immutable form, and even vote without the possibility of fraud or corruption. With the advent of smart contracts, Blockchain has become more powerful than ever.

Governments and central banks have realized the benefits of this new revolutionary technology, which explains why they've started to explore Blockchain tech more thoroughly. Now, some governments have announced plans to launch a digital currency of their own, while others have already done so. Venezuela has created its own digital currency called "Petro", while China is already designing its "digital yuan". Before we know it, physical cash will be no more as our money will be shifted towards the digital realm.

But, we'll have to see what the outcome of government-issued digital currencies will be as Blockchain technology is proven to have its own limitations (such as lack of scalability and privacy) which makes it terrible for mainstream finance.

Nonetheless, do you think that government-issued cryptocurrencies are the future? Or will it be just an idea that will pass away over time?

The governments of many countries have no choice but to pay attention to cryptocurrencies. Over the 10 years of the market's existence, blockchain as a technology and cryptocurrencies as a means of payment are beginning to enter people's lives more and more and nothing can be done about it. Therefore, governments have to decide how their state relates to cryptocurrencies and develop regulatory legislation in this direction. The smartest rulers take advantage of cryptocurrencies, while the stupid ones will ban them.