What do you think: Digitalising fiat currencies

[NyeFe]

We all know, and can understand how volatile it can be to store crypto currencies in a wallet for long periods of time. This is not to say that it's not the same for fiat currencies, but wouldn't it be useful to have subsidary crypto currencies, which represents a market value of our current crypto currencies?
Of course it would have to be authorizd for use, by the government which it consigns, but think about the bigger picture. A decentralised reality, where capitalised assets held by individuals, could be easily and precisely accounted for, where the future of countries does not rely on overpowered, corrupt individuals or banks, who farelessly undertake risky investments, on-behalf of the few, deprived individuals.
In other words, imagine a decentralised future, where we wouldn't have to skip from one crypto currency, to another or be forced to keep our crypto finance/profits in our chosen crypo currency.


This is just a daily thought, which intriged me. I would love to hear your opinons. Hopefully we could move on fro here.

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[AtheistAKASaneBrain]

The current fiat system works under the premise that it is a closed source system, controlled by few that can modify the total supply. It would be the same shit all over again, and the alternative would still be Bitcoin.

[thejaytiesto]

Im not sure I get exactly what you mean but if I understood it correctly, it would make avoiding taxes easier than it is now, and i dont think want that.

[randy8777]

Im not sure I get exactly what you mean but if I understood it correctly, it would make avoiding taxes easier than it is now, and i dont think want that.

isn't avoiding taxes something a lot people like about crypto currency?
it is much harder for them to know what and how much we have. i actually like that.

[picolo]

We all know, and can understand how volatile it can be to store crypto currencies in a wallet for long periods of time. This is not to say that it's not the same for fiat currencies, but wouldn't it be useful to have subsidary crypto currencies, which represents a market value of our current crypto currencies?
Of course it would have to be authorizd for use, by the government which it consigns, but think about the bigger picture. A decentralised reality, where capitalised assets held by individuals, could be easily and precisely accounted for, where the future of countries does not rely on overpowered, corrupt individuals or banks, who farelessly undertake risky investments, on-behalf of the few, deprived individuals.
In other words, imagine a decentralised future, where we wouldn't have to skip from one crypto currency, to another or be forced to keep our crypto finance/profits in our chosen crypo currency.


This is just a daily thought, which intriged me. I would love to hear your opinons. Hopefully we could move on fro here.

Fiat currencies are already highly digitized.

[Q7]

And revert back to the old system which has deceived us for so long? In any way possible, the idea of bitcoin is to disassociate itself and remain independent from any form of control and that is why the issue of being decentralized is so important and forms the core of what we believes in. I'm not trying to say it's not possible to have it implemented but in any, I really don't see the advantage of doing it.

[countryfree]

This is unsustainable. Just like when the dollar was pegged to gold. You cannot have a fiat version and a digital version of the same currency coexisting.

[Erdogan]

Let them try, the fools.

[croato]

If fiat would be digitalised in way to use blockchain, that would give bankers and govs huge controll over it and they could track every penny and could link every transaction with user. It would be centralised and under absolute controll. It reminds me on revelation, number of the beast and scares shit out of me.

[Undermood]

I think it will be no different from the fiat currencies controlled by the govs.

[ed_teech]

Is there any project trying to merge blockchain technology with fiat money ? Digital dollar bills in fact ...

[Bizmark13]

Is there any project trying to merge blockchain technology with fiat money ? Digital dollar bills in fact ...

There has been some discussion lately about a proposed altcoin called Fedcoin which would fit that description:

http://bitcointalk.org/index.php?topic=984823

Why a Federal Cryptocurrency?

Think of it as digital cash, just like like Bitcoin but without the volatility. It would be a payment system where you can send dollars to anyone else with a Fedcoin wallet in seconds for a very low fee.

The idea isn't completely without merit since users of such a coin would benefit from decreased volatility while leveraging the power of the blockchain that makes cheap and near-instant transactions possible. While it would be competing with Bitcoin, it would also make fiat-BTC conversions much easier since both coins would exist in the form of trustless code. Those who already dislike fiat will obviously reject its blockchain version too and I know most people around here aren't big fans of fiat so the negative reaction to the idea isn't surprising.

Then there are also altcoins and crypto assets which are designed to closely track the value of USD. Examples include BitUSD (BitShares), Nubits (NuShares/Peershares/Peercoin), and CoinoUSD (NXT - redeemable for real USD at Coinomat).

[oblivi]

This is unsustainable. Just like when the dollar was pegged to gold. You cannot have a fiat version and a digital version of the same currency coexisting.

Yeah it's an oxymoron. We invented cryptocurrencies to get away from the fiat problem, trying to somehow replicate the Gold Standard and create a new standard. Why would we want imitate fiat again?

[Meuh6879]

digital is useless without limits ... hardcoded.

[pereira4]

It would only bring more people to Bitcoin once people understand the limitations of a centralized digital fiat currency, so im okay with it.