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September 08, 2020, 09:53:24 PM |
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With APY's on yield farming reaching insane levels and also crypto being seen as a good hedge against fiat now there is a feeling that crypto is replacing standard money. Though I don’t think cryptocurrencies will replace “standard money” immediately fully. The main reason is, there are too many formal big players like Banks, Payment processors and many other middle men, agencies out there who get their share from the current monetary system.
Perhaps as more adoption grows and more business Blockchains like Concordium start serving the masses by integrating public blockchain in enterprises, with regulatory compliance and on chain ID verification in place, it might become easier for businesses to adopt this technology and might become a strong parallel money system that can co-exist with the traditional money.
Global Debt is something that is to be a major worry for all countries and the fiat money losing its value over years and economies heading towards hype inflation of fiat money.
Banks, governments are looking at introducing stable coins. And digital money dominance will eventually increase with reducing paper money. People will be more comfortable to view digital numbers on their screens and
also have a sense of owning and controlling it, this is when cryptocurrencies will take the cake since it will not be owned by a single entity.
I think we are heading towards a world where the definition of "standard money" itself will change. Now coming to the question of how long will the part last? Well, the part can never stop if it is fully regulated and legal from a regulatory point of view. Hence, I think the way forward will be regulatory compliant crypto. But crypto can never be stopped.
What are your thoughts? What is your "standard money"?
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