Governments Corporations and Decentralized Projects Competing to Control CryptocurrencyOctober 28, 2019
While cryptocurrency might be the future, there are questions as to whether it is possible to sustain itself with mining and all other maintenance parameters. The cryptocurrencies were first of all created to avoid the transaction fees associated with SWIFT, now a whole lot of stuff are functioning.
Ex-CFTC heads proposed a blockchain-based digital dollar given the Decline of the USD. They were talking about a government-sanctioned blockchain technology-based digital dollar.
The digital dollar that they are talking about will be backed by the USD and will function as a stable coin usable for daily transactions domestically and abroad.
This proposed monetary system will hold advantages over the existing financial system. However, the system will be reliable on “trusted, regulated intermediaries to maintain digital wallets and validate transactions.”
Giancarlo and Gorfine are the pilots of this proposal, and they state that this system will provide for higher transaction speeds and will facilitate micropayments. Cryptocurrencies will enable security and transparency.
In the current scenario, the pilots of the project proposal have a clue on whether there is a “no perfect solution exists to address the challenges and promises of digital currency, nor can anyone predict all the technological advances these efforts will generate.”
De-dollarization is an evolving trend. Several countries are focusing on less dollar usage for international transactions. India, China, and Russia already have non-dollar based trade agreements amongst themselves. One reason for this approach by governments is to deal with the sanctions and to protect themselves against a dollar-centric market crash.
The battle between the Libra and the USD is brewing and continuing underway. In the current scenario, the question is not whether the digital coins will go mainstream. It is well known that the digital assets will go mainstream, but the problem is about who will go mainstream and make it to the top.
The US government has a fear about the progress of China in the process of launching a Chinese Yuan. The Federal Reserve might be issuing a digital currency of its own. And this is one reason which triggered the CFTC chiefs to draw their plans for the government-sanctioned Digital Dollar.
A lot of stable coins which are collateralized with the stable coins are becoming popular. And decentralized enthusiasts are happy about a stable exchange media.
Governments, corporations, and decentralized projects are competing with each other to take a dominant control over the future of the cryptocurrency.