Maybe Not Possible For Governments To Get Off Fiat??

[Latviand]

In the coming years, it is possible that a new form of fiat currency will emerge, but it is unlikely that it will completely replace existing fiat currencies.

This statement is contradictory in a sense because there won't be an emergence if you don't replace the existing one although I do agree with the part about it being unlikely. The government wouldn't easily replace fiat even if they want to, that would be a nightmare especially for countries like US, they are a reserve currency for many countries so they can't just replace their money easily, that's why they still use cotton in their currency and not polymer.

[Helena Yu]

Canada is a country where it has a good relation with US and Canada is also strict as US.

China and Russia are have politics problem with US and it's territories, that's make China and Russia are possible to get off from USD because there's no reason for them to use USD.

Even USD is a global reserve currency, but don't forget China is so quite big and their economy are leading too.

[Smack That Ace]

Canada is a country where it has a good relation with US and Canada is also strict as US.

China and Russia are have politics problem with US and it's territories, that's make China and Russia are possible to get off from USD because there's no reason for them to use USD.

Even USD is a global reserve currency, but don't forget China is so quite big and their economy are leading too.

It's not a political issue, it's just competition in the market. Everyone wants to be the world's head and center, and that's what's going on between the US, China, and Russia. The USA has been at the top of the world for more than 100 years, and it is time for them to give up that position to the stronger in the same way they overtook Britain 100 years ago. The revolution of eliminating the USD, and reducing dependence on it is taking place, although there is no guarantee of success, but it shows that USD has started to have many problems.

[inthelongrun]

Isn't local fiats beneficial to its governments? Governments want to have a grip on their countries as much as possible. So replacing a local fiat with bitcoin is very hard to imagine. Maybe restore gold as the standard form when it comes to the issuance of fiat supply per country? The United States is the most powerful country and due to its influence, it is successful in making its local fiat the international standard currency. It would be hard to drop the US dollar as an international trade standard due to politics unless you are an enemy of the US or you are on the side of China and Russia. 

[Pierre 2]

I am pretty sure that its nearly impossible to totally ditch fiat money as there are many great stable fiat currencies. Swiss Franc and Euro would obviously replace United States Dollar if such things happened. So Bitcoin would still stay as alternative currency. Current monetary system is all about creating debt and buying now for selling future. Its inflationary because governments want it to stay inflationary. In long run, there could be different but not exactly as alternative, methods may become popular. (Gold money etc)

[Helena Yu]

It's not a political issue, it's just competition in the market. Everyone wants to be the world's head and center, and that's what's going on between the US, China, and Russia. The USA has been at the top of the world for more than 100 years, and it is time for them to give up that position to the stronger in the same way they overtook Britain 100 years ago. The revolution of eliminating the USD, and reducing dependence on it is taking place, although there is no guarantee of success, but it shows that USD has started to have many problems.

It's true, but we still don't know what BRICS countries will do to USD in the future. China want to replace USD with Yuan, but it's rejected by many governments. With the help of other 4 countries e.g. Brazil, Russia, India and South Africa, there's a chance USD can be replaced with their new money. Russia and India are big countries, so US and it's territories should be careful.

I still wondering why Euros are smaller than USD and Yuan, it's accepted by many developed countries.

[Zanab247]

Yes, this is intimidation to other countries that is trying to make their fiat currency popular than USD which many countries of the world are used to in terms of international transaction. During the war that came up between Russia and Ukraine that made China and other countries to force their international investors to be more focus on their currency than USD which is a sign that it will not be possible for government to value other currency than her own currency no matter how favourable that currency is to them. But it will be difficult for China and other countries trying to make their currencies more popular than USD because, many foreigners investors are used to dollar for a long time in their business activities.

[Mauser]

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?

Yes I think that there would be a lot of consequences and intimidation for countries to try and stop using fiat money. There are two types of countries in the world, net export and net important country. Which basically means that some countries consume more than they produce and others that produce more than they consume. USA is a good example for a country that imports more, which gives them a lot of power. In the past most of that International trade was settled in USD and if one of the trading partners would move away from USD now, then the USA could try and switch to a different country for it's imports. Most products are not only offered by one country and if your economy relies heavily on its export to function, then you are dependent on the big countries. That's why I don't expect we are going to see any of the big countries to switch out of the fiat system anytime soon.

[rat03gopoh]

If a country can get rid of dependence on economic cooperation with other countries, of course they can change the financial system.
But does fiat really need to get rid of, while a function of fiat is a representation of a country's economic system. I mean in terms of price, the government always does its best to beat other currencies including changing or revising the economic system.

[bluebit25]

Arguably, the difficulty of governments getting out of the fiat system has something to do with the stability and globality of today's financial systems. However, it cannot be asserted that having other countries block other governments from wanting to change the financial system would be a case of intimidation from more dominant states. Governments have the right to make their own decisions about their financial systems, and changing this system can depend on many factors such as the political will and economic capabilities of those countries.

The rise of the renminbi (CNY) is a remarkable trend in the world financial market. China's impressive economic growth and its easy monetary policy have helped the CNY increase its value in the international market. However, it should also be noted that the rise of the CNY also brings with it some risks and challenges. One of those challenges is the competition with the USD in becoming the world reserve currency. In addition, coming up with timely and effective economic and monetary policies is a challenge for the Chinese government. Going forward, China's continued economic and financial development will be an important factor in determining the solidity and potential of the CNY. However, with impressive growth in recent years, the CNY is likely to become an attractive option for investors and businesses globally.

[Lorence.xD]

In the coming years, it is possible that a new form of fiat currency will emerge, but it is unlikely that it will completely replace existing fiat currencies.

This statement is contradictory in a sense because there won't be an emergence if you don't replace the existing one although I do agree with the part about it being unlikely. The government wouldn't easily replace fiat even if they want to, that would be a nightmare especially for countries like US, they are a reserve currency for many countries so they can't just replace their money easily, that's why they still use cotton in their currency and not polymer.

Then it can be considered as alternate currency if the current currency couldn't be replaced. But if that's the case and many people much recognized the alternate currency then it would have impact the country's economy. That's why until now only few countries acknowledged the existing alternate currency for example like Bitcoin. US is considered as universal trading money as a lot of country has a reserved dollars. But for sure they couldn't get off fiat as their economy is stable and as I said it might impact the fiat's value and ruin the economy. They actually recognized crypto and blockchain technology they're already opened to it since a lot of people much prefer the alt currency since it's more convenient.

[judaspriest]

If a country can get rid of dependence on economic cooperation with other countries, of course they can change the financial system.
But does fiat really need to get rid of, while a function of fiat is a representation of a country's economic system. I mean in terms of price, the government always does its best to beat other currencies including changing or revising the economic system.

If the question is like that, I don't think fiat needs to be removed and is still needed,
after all fiat value is determined by the stability of the economy and government,
obviously I don't think fiat should be done away with.

[BitcoinPanther]

The government will never replace fiat currency that they released and have full control by any decentralized currency.  One major reason is the control factor.  We all know that the government always wanted to have authority over their jurisdiction and replacing fiat currency by Bitcoin will go against their authority.

Just look at how these governments trying to control decentralized cryptocurrency, they implement all kinds of regulation under the guise of anti-money laundering and make KYC on  centralized financial services mandatory.  They do this to make sure that they can have someone to collect and hand them personal data of people if they need it.

[coolcoinz]

The government will never replace fiat currency that they released and have full control by any decentralized currency.  One major reason is the control factor.  We all know that the government always wanted to have authority over their jurisdiction and replacing fiat currency by Bitcoin will go against their authority.

Never say never. In Europe many countries replaced their native currencies with the Euro, which they had no control over. They gave up the control over the currency to the EU.

Just look at how these governments trying to control decentralized cryptocurrency, they implement all kinds of regulation under the guise of anti-money laundering and make KYC on  centralized financial services mandatory.  They do this to make sure that they can have someone to collect and hand them personal data of people if they need it.

Don't mix things up. KYC has very little to do with control. It's a data gathering tool.
No crypto users have to undergo KYC. For now it's still your choice if you want it or not and even if you choose to do it, nobody is taking away your bitcoin... yet.
It's possible for governments to ditch fiat money. Money printing is not a requirement for a stable economy. It's just that old habits die hard.

[Ndabagi01]

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?

In terms of the global financial system, numerous political decisions are being made that the general public is unaware of. The US dollar will remain the most extensively used currency for international transactions for some time, requiring a total change before being swapped to another currency. The world's financial power is shifting and can shift in any direction.

In this process, top countries are always favored, while lower countries follow suit because they believe they cannot exist without the assistance of the top countries. More nations have been harmed by financial dependency than have risen above their world standing.

[Fortify]

Maybe Not Possible For Governments To Get Off Fiat??

 Thinking that with the USA dollar as the main reserve currency, That would make it very hard for other countries to get off the USA dollar and other fiat systems if they wanted to.
Such as moving to a money system that has more limited supply.

More less to drop a fiat system altogether for the international business aspect for that countries exports and imports.

There would be or could be in my opinion consequences such as a possible war break out with in some case the USA before.
Now with China taking over some countries. If those countries dropped the Yuan for business, there would be serious consequences coming down from that,

For example I am in Canada. If our country here stopped the USA dollar altogether for the trade transaction between USA and Canada there be serious consequences, even if my country Canada the government dropped the Canadian dollar or any fiat system in the country and moved to a new system, like BTC or some non fiat money system on the national system. There would be very serious sequences coming back from other governments in other countries.

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?

In reality most "fiat" currency is just stored electronically anyway, the amount of notes and coins in circulation in miniscule in comparison. It's effectively much more advanced in how it is stored and manage than most cryptocurrency can claim to be - crypto primarily has the advantage that it is decentralized. In the end governments do this because it has been found the best and most effective solution to peoples inherent need to trade. It's nothing to do with whether they can "get off it", it does the job it's meant to do very well and the free market dictates the rest. Just like we saw a flight from cash during Covid, when there were less people out shopping and a bit of a stigma on passing around objects which could host the virus, the need for physical cash and the transfer to more online finances increased.

[davis196]

Fiat money means two things: fractional reserve banking and money printing.
Fractional reserve banking is the main reason why the global economy kept growing with high rates in the last several decades.
Moving to a currency with a limited supply would mean the end of money printing, which means that the economies won't be running on steroids anymore and the artificial economic growth will become a thing from the past. That's why no politician or banker wants to dump fiat money.
Your example with Canada isn't good, because Canada is totally economically dependent from the USA, when it comes to exporting goods.
Other countries(like China, Russia and India) are way less dependent from the USA and they could easily dump the US dollar.

[Smack That Ace]

...

I still wondering why Euros are smaller than USD and Yuan, it's accepted by many developed countries.

Economic power will decide everything, the EU is a powerful and united bloc, but their mistake is being too dependent on the US not only economically but also militarily. It's really a pity for them. Since the outbreak of war, they started trying to reduce their energy dependence on Russia, but they ended up falling into the US trap when they were buying LNG from the US at 3 to 4 times the market price. It can be said that the EU economy is more dependent on the US than ever, and that is what the US wants, and they have succeeded. As long as the West relies on the US, the Euro will never surpass the USD.

[siniminomorocomunisakito]

Maybe Not Possible For Governments To Get Off Fiat??

 Thinking that with the USA dollar as the main reserve currency, That would make it very hard for other countries to get off the USA dollar and other fiat systems if they wanted to.
Such as moving to a money system that has more limited supply.

I think it is possible to change their financial system but this decision has consequences because any move away from fiat currency will require careful planning and cooperation between countries otherwise potential conflicts and negative impacts on trade are very vulnerable, weighing the potential benefits and disadvantages of these changes and considering the long-term implications for the country and its citizens I think it is better for the level of confidence and stability in the alternative financial system.

[tjtonmoy]

It is possible if only the government have control over that too. Otherwise, they will never replace the fiat currency. But in theory, it is very much possible. We need a new system to replace the fiat currency. Let's think that as crypto, for example. We can use both of them at the same time. Keeping them both side by side and using at the same time will give us much more freedom to learn about the new thing and adapt to it in a better way, rather than throwing out something and completely replacing it overnight.
But no such thing is needed in the eye of the governments, and they will never approve something decentralized which will harm their centralized system.