National Fiat Currencies Will Soon Start To Tokenize On Public Blockchains.
The day is coming when Governments around the world start to put their fiat currencies on the blockchain.
The best and most secure way to do this is through a private/public hybrid based blockchain. Like an Ethereum private chain where issuer (central bank) is in control that settles on securely on the main public Ethereum blockchain.
This is a centralized currency that will ultimately be secured by public blockchain.
The specific public chain does not have to be Ethereum although this would likely be a top choice for Governments since it is the largest platform blockchain in the world ATM.
Developers could choose to build out dapp/token on private chain with interoperability features such as the Aion Network. The fiat coin could settle on any of the major public chains like Ethereum, EOS, NEO, ADA (blockchain agnostic).
Circle with the Goldman Sacs investment already is doing this.
Now it's only a matter of time before a major world Government does it first. Switzerland Government is already in heavy research how to do it but in all likely hood it will be a small island or some small country that will do it first. Its just too costly for them to maintain paper money.
I think will see many countries doing this over next 10 years. Now of course they will still be in control of the supply of money (centralized system) but they secure their fiat on the public blockchains since these are the secure decentralized and secure networks.
Bitcoin solves the double spend problem but ultimately it will the Governments who digitize their currencies on the blockchain.
Cryptocurrencies will not replace fiat digital cash rather be an alternative system of currency and wealth storage. The most important role of cryptos will be the securing of the public chain to runs life changing dapps not possible on centralized closed systems.
I think blockchain currency circulation is safe. There is no possibility of danger. Therefore, it is possible that gradually all countries will start using the blockchain currency.
This is correct, the way consensus works makes large distributed blockchain ultra secure. Cryptocurrencies are required to secure it.
Thank you because you read about your post and found it crypto and blockchaine.
Bitcoin really solves dual expense problems but ultimately it will be digitized in the blockkain currency? Very good in this case.
Governments will tokenize their own fiat money like a ERC-20 token. They still need the public decentralized blockchain to make it work though.
I'm not sure if governments have any reason to do this directly. We already see it happening indirectly with Cloud and Tether and there will be more on the way.
The true value of crypto is ensuring that you don't have to trust a central authority when it comes to inflation distribution. If any country has the balls to pull that off; to create a currency that they have little control over, I would be thoroughly impressed.
The cost savings are tremendous but governments love to waste tax payer money so....
To create their own decentralized currency with limited supply? Yeah I doubt that's happening anything soon but tokenizing their fiat money makes a lot of sense. This would only accelerate Crypto adoption. I do think it very unlikely in the short term Crypto will replace Government money, however all Crypto needs to do is become an alternative asset to be highly successful. Longterm 20-30 years Crypto does pose a threat to inflatable fiat.