Blockchain fiat Currency

[Bill buffalo]

I have a very serious question to ask Europe and pretty much the rest of the world have a stable financial system that works well for themselves but a lot of other countries especially in Asia and Africa don't have a stable financial system due to mismanagement and corruption I wanted to ask would it be possible to make a financial system in such a way that all monetary transactions took place on the Blockchain with the introduction of a stable fiat currency that runs on the Blockchain and is backed by tangible metals and raw materials like gold,oil,land but such a currency would be available to the entire continent and would be run on the Blockchain mind me it depends on if people use it but it would be their choice let's say the stable fiat currency has more value than the local currency and the local currency could be easily exchanged for the stable fiat currency I think people might adopt it but I would like to know the pros and cons

[Despairo]

Remember not every blockchain is transparent and I don't think they would share their code to public, my assumption the government might use a private blockchain, similar like the current old banking system where no one can view it except the employees.

It's not going to happen to see a currency backed with physical commodity because the government can't make a lot money. They will issue CBDC that they can mint out of thin air and make money from it.

The best solution to make sure there's no corruption is never trust in centralization i.e. any countries are full of corruption.

[Bill buffalo]

You don't seem to understand me it doesn't need to be the government that issues the CBDC a private company could do that a company not controlled by the government the government could ban it but if it works and it's adopted by lots of people who could stop it if the government has no control over the code let's say for a country like Venezuela  that is very corrupt if money is ever stolen it can easily be published to the public so everyone would know don't you think it will greatly reduce corruption when you know your theft would be published to the public.

[Despairo]

You don't seem to understand me it doesn't need to be the government that issues the CBDC a private company could do that a company not controlled by the government the government could ban it but if it works and it's adopted by lots of people who could stop it if the government has no control over the code

Then it's just an IOU and there's no way to verify if the currency is backed with physical asset, even more it's not regulated and it can fail easily. We already have this: digital gold, Tether, and any other projects that claimed pegged with physical asset, while the reality it just the price that pegged with physical asset, the company didn't own the physical asset.

What you're looking is Bitcoin since it can be verified it's transparency, immune against government ban and hedging against inflation.

[Don Pedro Dinero]

You don't seem to understand me it doesn't need to be the government that issues the CBDC a private company could do that a company not controlled by the government the government could ban it but if it works and it's adopted by lots of people who could stop it if the government has no control over the code let's say for a country like Venezuela  that is very corrupt if money is ever stolen it can easily be published to the public so everyone would know don't you think it will greatly reduce corruption when you know your theft would be published to the public.

When the CBDCs are fully operational, stablecoins will run out. Either because they will be banned or because it will make no sense to use something that is only guaranteed by one company, versus something that is backed by the state and massively used. Cases like Terra Luna will push in that direction.

The only thing that comes close to what you are looking for in terms of security and transparency is bitcoin, as Despairo says, but it is the opposite of a fiat currency. For fiat currencies the future is CBDCs. For playing roulette the rest of shitcoins.

[davis196]

I have a very serious question to ask Europe and pretty much the rest of the world have a stable financial system that works well for themselves but a lot of other countries especially in Asia and Africa don't have a stable financial system due to mismanagement and corruption I wanted to ask would it be possible to make a financial system in such a way that all monetary transactions took place on the Blockchain with the introduction of a stable fiat currency that runs on the Blockchain and is backed by tangible metals and raw materials like gold,oil,land but such a currency would be available to the entire continent and would be run on the Blockchain mind me it depends on if people use it but it would be their choice let's say the stable fiat currency has more value than the local currency and the local currency could be easily exchanged for the stable fiat currency I think people might adopt it but I would like to know the pros and cons

Would you mind telling us how the "tangible metals and raw materials like gold, oil, land" will be "uploaded" on such fiat blockchain?
Who is going to guarantee that the reserve of physical assets, which is going to be used to back the currency won't be stolen by corrupt politicians and African military leaders?
There's plenty of altcoins with a decent supply and low transaction fees. Why don't the people in Africa and Asia adopt these altcoins and use them as a replacement of their local currencies? The answer is simple. Their governments won't allow them to do such thing.

[naira]

You don't seem to understand me it doesn't need to be the government that issues the CBDC a private company could do that a company not controlled by the government the government could ban it but if it works and it's adopted by lots of people who could stop it if the government has no control over the code let's say for a country like Venezuela  that is very corrupt if money is ever stolen it can easily be published to the public so everyone would know don't you think it will greatly reduce corruption when you know your theft would be published to the public.

In fact, you are the one who doesn't understand, if a private company builds a new payment method while  the private company license is still under government permission. How can this operate well because the government will easily use its access to decide whether this company can operate or not. It's very easy to be labeled Illegal so which side will the public take? It is clear that the government is a legitimate power recognized and protected by which legitimate payments are returned to their place.  It's not easy for you to set up a private company and then operate quietly to provide the public with new options without a license. So this private company will be considered to have misused state financial assets to enrich its business.  Then where will the public guarantee of placing their trust in illegal currency seek protection? plus you are  talking about backing  up with gold etc then it is also definitely considered storing a country natural wealth and does not have an operating permit.

[rat03gopoh]

if money is ever stolen it can easily be published to the public so everyone would know

Blockchain can't prevent money from being stolen at least I have never found it even on existing stablecoins  or maybe you mean the public can identify it only if the blockchain implements some kind of side note on every transaction and yeah it is definitely the most size-intensive blockchain.

You don't seem to understand me

I followed the way you wrote, see if you understand what I mean 

[Gozie51]

I don't know how a unified stable coin will work when bitcoin is yet to get such status. If you understand that decentralisation has been one of the discouragement for control and the government not likely to go in for what they can't control and manipulate. So using a stable coin that gives everyone the access and view on the blockchain still looks difficult to conceive.

[KingsDen]

I have a very serious question to ask Europe and pretty much the rest of the world have a stable financial system that works well for themselves but a lot of other countries especially in Asia and Africa don't have a stable financial system due to mismanagement and corruption I wanted to ask would it be possible to make a financial system in such a way that all monetary transactions took place on the Blockchain with the introduction of a stable fiat currency that runs on the Blockchain and is backed by tangible metals and raw materials like gold,oil,land but such a currency would be available to the entire continent and would be run on the Blockchain mind me it depends on if people use it but it would be their choice

After reading the topic title I expected you to dive into the discussion immediately and explain what you mean by blockchain fiat currency but you digressed by pointing at the weakness of African financial system compared to the European counterparts. What you said is very right because the financial system in some African countries, if not all, is so weak and there are a lot of loop holes created by the greedy and wicked politicians who has in one way or the other personalize the financial system to benefit them and their unborn generation.

What you have described above by having a fiat equivalent of digital coin that runs on the blockchain is already in existence and we have seen that many countries have joined the bandwagon of making their local cryptocurrency to run on the blockchain. These coins which are called Central Bank digital coins CBDC are not decentralized and they are not actually cryptocurrency they are leveraging in the advantage of blockchain to dive into the unfolding crypto industrial revolution.

let's say the stable fiat currency has more value than the local currency and the local currency could be easily exchanged for the stable fiat currency I think people might adopt it but I would like to know the pros and cons

This is not the way fiat currency works. A fiat currency cannot fight against itself by having different value for the denomination. Since it is a stable coin representing the fiat, both the digital and the physical version of it must have same value.

[lombok]

This may be similar to a CBDC. I think CBDC will represent the currency of each country. For a global digital currency, I think it will be very difficult to reach an agreement and this requires full attention and requires every country in the world to recognize this. If you look at the current conditions, there will be many pros and cons.

Then another problem is if there is a war which is currently happening, is this possible? considering that blockchain must run online and requires devices such as cellphones and computers to access it, if a war uses bombs and destroys devices and internet networks, will it be effective? Of course, if we use physical currency, wouldn't digital currency also not work? How do you manage the supply?

[kentrolla]

Don't confuse yourself by assuming that CBDC is decentralized it's just a digital money and acts the same way like fiat and there is no way government will come up with stuffs you have mentioned and it's not limited to African or Asian countries but throughout the world we will find corrupt politicians and corrupt government and there is no way in centralized ecosystem to control it and the answer is decentralization and making everything public but that's the reason they are against crypto. So this is something which might not happen.

[Mr.right85]

A unified would currency has been one of the sort out for ideas in our world. It’s been the reason why many African leaders that tried to create a unified currency for Africa and Africans where termed violent dictators, moved against with its people and killed.
A unified currency isn’t something that is liable to exists anytime soon with the benefits derived from foreign exchange for the rest of the developed world, let alone to be run on the blockchain technology. I don’t see that coming to play and we could as well be try to better our economy and it would strengthen our currency.

Don't confuse yourself by assuming that CBDC is decentralized it's just a digital money and acts the same way like fiat and there is no way government will come up with stuffs you have mentioned and it's not limited to African or Asian countries but throughout the world we will find corrupt politicians and corrupt government and there is no way in centralized ecosystem to control it and the answer is decentralization and making everything public but that's the reason they are against crypto. So this is something which might not happen.

CBDC is just fiat in digital form. For the record, I don’t see much difference in operating a local bank app with running your CBDC in some app. They are all of the same parcel.

[Faisal2202]

Yeah it is possible and is already in use people call it the CBDC system. As it is based on blockchain technology, totally transparent and open source (depends on the country if that makes it open source or not) but argentian's CBDC was made open source and some experts did find some mistakes and loopholes in the CBDC system and after some time it became live and now Argentina has accepted the BTC also.

Well, that's another thing. CBDC stands for central Bank Digital Currency. And it is totally based on the idea that you have proposed. As the funds you will be using to send from one place to another place using the government's blockchain are totally backed by some raw material like US dollars and these US dollars are then backed by Gold etc.

Many people are still against this system as it compromises on anonymity factor but we are using fiat now and what bad in using it in CBDC, another factor is, it is centralized means, if one system is down then all system will be off and people might not be able to transfer there funds or if compromised they might lose there funds too.

[electronicash]

a currency backed by tangible metals and raw materials and runs on blockchain seems hard to establish. but fiat currency like the mention of CBDC i think already existed. but you can assume the stablecoins in crypto like the USDT are one of them.

with the level of trust we have in governments and banks backing a currency with gold, it would be very naive of other countries to send their gold outside their country to store. this is just one of the cons that will wrap it all up.

but BTC network itself can be a stable financial system.

[Twentyonepaylots]

Remember not every blockchain is transparent and I don't think they would share their code to public, my assumption the government might use a private blockchain, similar like the current old banking system where no one can view it except the employees.

Yeah government doesn't have to be transparent at all times, although it is our money from taxes whom they are spending with. There are confidentialities as well included from those funds, and who would calculate it?needless. I think the stability in the world is not achieveable given the fact that we have our own government and differences.

It's not going to happen to see a currency backed with physical commodity because the government can't make a lot money. They will issue CBDC that they can mint out of thin air and make money from it.

They already answered it with CBDC but it is not the answer to OP.

The best solution to make sure there's no corruption is never trust in centralization i.e. any countries are full of corruption.

The only solution to corruption is transparency and the governing people, I don't think there's more than half people in the government who is faithful to their people and country, unfortunately politics is at mud played by oldies.

[Kemarit]

I have a very serious question to ask Europe and pretty much the rest of the world have a stable financial system that works well for themselves but a lot of other countries especially in Asia and Africa don't have a stable financial system due to mismanagement and corruption I wanted to ask would it be possible to make a financial system in such a way that all monetary transactions took place on the Blockchain with the introduction of a stable fiat currency that runs on the Blockchain and is backed by tangible metals and raw materials like gold,oil,land but such a currency would be available to the entire continent and would be run on the Blockchain mind me it depends on if people use it but it would be their choice let's say the stable fiat currency has more value than the local currency and the local currency could be easily exchanged for the stable fiat currency I think people might adopt it but I would like to know the pros and cons

I don't know, but before we have Venezuela's Maduro having their crypto called "Petrol" and according to reports they've raised around $700 million if I'm not mistaken, but it was a failed experiment though, because they accused Maduro of bloating that numbers and it's not really back up by oil and by today we haven't heard about anything on what happen to this project.

So perhaps if some government in EU or even in ME can come up with a great plan of a crypto being back up by gold or oil or something, it could be a good alternative.

But so far none, and perhaps they are not interested on building one as they know that Fiat is still the king.

[Darker45]

To add a different money is never a solution. That adds another problem. The less money we have in the world, the better. If only we can have a single currency in the entire world backed by gold, for example, or perhaps Bitcoin, this would have been a much better place, especially in terms of trades, value assignment, and so on. So, I don't think it is helpful to create one currency for one country, another for one continent, and so forth. This is nuisance.

[YUriy1991]

Many factors are involved in bridging this, one of which is international cooperation. Indeed, creating a Blockchain-based global financial system is quite a brilliant idea, but there are many stages that need to be prepared, for example how it can be accepted globally through regulations and the main thing is the availability of the infrastructure so that when everything is running and the level of usage is high, it ends up stalling. so that transparency and efficiency are no longer a priority.

[Despairo]

BTC is not scalable and is unstable

Do you think both of gold and oil price are StAbLe?

 

Bitcoin is secured by network that operated by miners, if you think Bitcoin is expensive because you need to pay fee for every transaction you make, no one force you to use it in everyday. You can use it as a store of value, then convert to your fiat when you need it.

An asset that can hedge against inflation is never been stable.

The only solution to corruption is transparency and the governing people

Every government claim they're transparent while the reality isn't yet transparent.

The real transparent is when they willing to give access for everyone to track their income and spending in real time. Every quarter year, they need to show the proof of all their money in live streaming. But I don't expect it since that's really strict and the government won't willing to do that.