🌎 The Global Transition From FIAT to Cryptocurrencies
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🌎 The Global Transition From FIAT to Cryptocurrencies

By Stuart Hollinger | DeFiKnowledge | 22 Mar 2021


 A study into the transition of value transfer — Stuart


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The transition from using FIAT currencies to cryptocurrencies will be a slow process for people. It will most likely be done in phases. The first phase will be to use crypto-currencies as a store of value/investment vehicle. The second phase will be to use crypto-currencies for daily purchases. The third phase will be to completely eliminate the use of FIAT currencies. The third phase will take a long time to achieve. It is important to remember that Blockchain technology is in its infancy. While it is being used in many industries, the technology is not yet implemented in a mainstream capacity. For this reason, it is difficult to give a definitive time frame on how long the transition will take.

While a transition from FIAT currencies to cryptocurrencies will be a slow one and will take time, it is inevitable that it will happen. It will take time for people to warm up to the idea of using crypto-currencies for transactions.


For this reason, governments are taking measures to ensure that cryptocurrencies remain safe, secure and trustworthy. The role of the government in regulating cryptocurrencies cannot be understated. Governments will need to play a role in setting guidelines and regulations for the use of crypto-currencies. The government will also need to create a legal framework for the use of cryptocurrencies in the financial sector. At the moment, there are too many risks associated with using cryptocurrencies for transactions. Not only does the technology need to be improved, but also the risks involved with using cryptocurrencies need to be addressed. When it comes to using cryptocurrencies for transactions, there are risks of hacking and money laundering. It is important that the government works with stakeholders to ensure that crypto-currencies are safe for use. Governments can also provide backing to cryptocurrencies by certifying them and backing them with gold or fiat currencies.

The use of crypto-currencies is still in its infancy and will take a long time to be adopted by the majority of people. However, it is safe to say that it will be a part of every transaction in the future.


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The reason why people are scared of cryptocurrencies is because they don’t understand them.

Bitcoin, and the underlying blockchain technology, have inspired a host of other startups in recent years, from Ethereum to Storj to Lisk. Even major financial institutions like JPMorgan Chase & Co. and the New York Stock Exchange have created their own cryptocurrencies as a way to conduct financial transactions. Even so, the idea of governments, companies or other entities using cryptocurrencies to undermine financial institutions that have underpinned the global economy since the 1970s is a scary one.

It’s enough to give governments reason to want to get in on the ground floor.

“It’s the wild, wild west, and these guys are looking to see if they can grab a wild horse,” said Jerry Brito, executive director of Coin Center, a Washington-based non-profit research and advocacy group focused on cryptocurrencies. “They’re trying to learn more about it so they can get involved.”

The People’s Bank of China

While China’s central bank has been researching blockchain, it’s not at the point where it’s ready to issue its own cryptocurrency. Instead, the People’s Bank of China is trying to figure out how to use existing cryptocurrencies’ underlying technology to its own advantage.

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The PBOC could decide to issue its own cryptocurrency in the future, but it’s unlikely to do so for the the next short while. The PBOC hasn’t officially commented on its plans. It told Bloomberg in a statement that it will “continue to study” blockchain. The central bank is also looking at how to regulate the proliferation of cryptocurrencies, and hopes to issue guidelines in the coming months! China’s central bank isn’t alone in wanting to harness the power of digital money.

In Russia, the central bank has been talking with financial institutions about the practical uses of the blockchain technology. “We don’t understand those who say bitcoin is not a currency,” Olga Skorobogatova, deputy governor of the Bank of Russia, said in a speech on Jan. 11. “If you have a currency, you have a blockchain.” “We are actively working with our colleagues from other countries to start discussions on the regulatory side and to create a favorable environment for the further development of blockchain technology,” Skorobogatova said.

Blockchain is a type of distributed ledger technology (DLT), and it’s best known as the technology behind cryptocurrencies. But the technology has many other uses, including powering cryptocurrencies and the digital tokens behind initial coin offerings (ICOs). Blockchain has the potential to be a transformative technology, but it’s still in its early days, and it’s not 100% clear whether the technology will be able to live up to the hype. Only time will tell…


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Stuart Hollinger
Stuart Hollinger

Crypto Social Media Übermensch


DeFiKnowledge
DeFiKnowledge

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