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The Future of Currency. Corporates vs. Governments: Will we end up picking sides?

The Future of Currency. Corporates vs. Governments: Will we end up picking sides?

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The Future of Currency. Corporates vs. Governments: Will we end up picking sides?

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Howdy Crowdholders,

After reviewing the voting and reading some fascinating comments from the Libra WP task, we see truly a double edge sword. It’s clearly up in the air whether this will be positive or negative for the future of Crypto. Capitalism is all about competition. You may recall the episode in South Park “Something Wall-mart This Way Comes, where at the end the town burns down Walmart, vowing to spend at their local hardware store. Then it fast forwards and the local store becomes a corporate giant from all the town's spending. They then repeat and burn it down again.  

 

 

You can ask any startup if they would like to become a Unicorn (corporate giant), they usually all say, “Yes!” So whether FB becomes a winner or other Crypto projects become the most successful crypto business, the outcome will be the same. In a way we have to accept this, as “burning one business down opens up another business to take its place.” Some say, the free market brings more power to the business world, which has given rise to less competition (mergers and acquisitions gone wild!). And a call for Government regulations to restrict the current market. While the other side says that restricting the free market, restricts the low barrier of entry for any person to start their own business. This would then increase costs and prices for a competitive market, allowing only large business to be able to survive bureaucratic red tape. 

 

Let's now look at some recent news coming from China. As per  Bloomberg, China is on the horizon to release their own centralized blockchain Cryptocurrency, which clearly shows this Crypto play is about restricting freedom, not increasing it, as a new digitized cash can be tracked. Some can also claim FB is also restricting freedom as well, with only a promise that in 5 years they will fully decentralize their system. But from looking at China’s actions, it could unleash a wave of more Governments playing a similar game. But there is some hope, which comes from the economists, Friedrich Hayek.  

 

In his 1976 book Denationalization of Money, his vision of an ideal monetary policy for currencies would come from private businesses issuing their own, and compete with each other for public acceptance. In fact, his ideologies now can be seen in today's Crypto market. The stability of the currency, would create the most trust through a mutually acceptable intersection between depreciation and appreciation. He even goes on in a reversion of the book, that it would then bring the survival of the fittest for the global best monetary policies… Bitcoin anyone? As you can see this is eerily similar to what is happening in the Crypto market we are in today.  

 

The future looks to be a competitive one. One that may see a rise in power between public vs private. It’s going to be bumpy. But one thing we all agree from what we have seen from history, restricting freedoms both economically or socially brings forward oppression.

 

This task is about us all sharing our knowledge and distinguishing the world ahead. Are we looking into a future where we pick sides? 

 

Look forward to your thoughts! 

 





50 COMMENTS 215 VOTES

Most recent Most voted Most verbose

I think we would choose sides. I don't know if it's the way it's meant to be, but something similar.

However, seeing, for example, the situation in my country (Spain), I think we would not agree that the sides are these either. There are many people who disagree with the laws of government and their lies and fallacies. The idea would be that we could choose another path, which does not lead to dictatorships, manipulations or abusive powers.

2 months ago

Karen M guru

Too bad we can't change the government.

2 months ago

We won't have to pick sides between corporate and government cryptocurrencies because they are one and the same. China is a good example of what that means. If a corporation in China does something to oppose the government the government takes over. With force usually. We think we are more civilised in the west and the government puts only financial pressure on non-compliant corporations, like we see now with a lot of crypto companies. The commotion around Libra is mostly smoke and mirrors as the corporations backing it are all compliant. All the info from FB is available to the government, so the government will be pleased to receive additional info about where people earn and spend their zuckbucks,

Blockchain can be liberating or a tool of total control. Central bank coins or digital legal tender are an example of control tools, all your spending will be transparent to the government and if you do something non-compliant the government will shut you out of the monetary system, essentially starving you to death, if you keep relying on legal tender. Paypal and other payment processors are already doing these payment channel bans to various groups of people, but now you can still choose another provider. If there is only digital legal tender they can shut you off at the source.

 

The real choice will be between anonymous and decentralized networks like monero and centralised, transparent networks like XRP.

 

 

2 months ago

Y W new user

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2 months ago

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2 months ago

Y W new user

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2 months ago

Y W new user

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2 months ago

Y W new user

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2 months ago

Y W new user

Site look's good. Idea very interesting, let's see the developements.

2 months ago

Y W new user

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2 months ago

Y W new user

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2 months ago

Y W new user

A very welcome idea indeed.

2 months ago

Y W new user

i am new here and thus don't have many upvotes but anything I could do to help I would be glad.

2 months ago

Ethan Clime guru

CEO of Crowdholding.com

Cheers for joining the community. The best way to get votes is to answer the questions in the task and put your ideas down. Genuine well thought out answers do best. When the task expires you see the ranking of the votes.

2 months ago

Karen M guru

Posting every sentence as a separate post is really not the way to go. Well thought out answers to the task will help you to get more votes.

2 months ago

Y W new user

To all community fellows, all the best.

2 months ago

Y W new user

It wasn't difficult to sign up and create an account for the first time. I haven't started to make any trades yet but I've joined the webinar lessons so will take in everything I learn from it.

2 months ago

Y W new user

i sincerely hope the success of Crowdhoiding.

2 months ago

Y W new user

Your proposed transparent system seems like a good way to go about it. 

2 months ago

Y W new user

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2 months ago

Mass Tca new user

Embrace the future not to be scared of it

Not sure if it will be compulsory to choose a side but probably we will access to different benefits according to what we will use, therefore it will become natural to prefer to use a currency or another.

Not to have a nationalized currency (or anyway not only that) might also be a big risk in the case this power were not spread among many hands but simply moved from the government to another entity/corporation, that had as main goal its own profit, not the welfare of the country. This is something to be absolutely avoided through regulations, therefore the Nation/Government has still a fundamental role to play.

2 months ago

Igor Silverio senior

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2 months ago

Ejay Dario guru

I'm more experience and know the circulation in this Blockchain Industry.

In my opinion cryptocurrency is the biggest game of our future this is a future with modern price.  Government will make a wake up call to enter for this platform they will make some crypto to make their country sustain their economy. Cryptocurrency is the better side to work with, advances technology with advance paying crypto.

2 months ago

NARUTO RAPHEAL guru

I am a Mechanical Engineer with expertise in power and Mecha-tronics. An Entrepreneur

The future holds a lot for us both in crypto and in fiat currency in as much as currency and economy is concerned. For me I will give the opinion that both of them will exist side by side such that what Will be the defining factor will be more of circumstance of priority rather than totally choosing one over the other.

Looking at the liberland project one can clearly see where the advent of crypto comes in matters like this and the role that it plays in making our cities and countries more smart. But the totally use of crypto will still be hindered due to some issues that has not been totally handled like constant power supply and also accessibility to the internet.

So more or less there will be greater cooperation between them the fiat and crypto currency in the future and each Will be used in the best means to which it can be employed so as to maximize resources. 

Making the world to adopt one crypto currency or blockchain as the central Wil be another issues as different countries will create theirs which will or might lead to some other Un foreseen problem.

So the best thing to do and employ is mutual coexistence between the two to make life simpler and easier. 

2 months ago

Fred Blauer guru

Open for business

I believe that it's a good idea to have money that is separate from the state, so that it is not subject to politics, and inflationary debasement. Bitcoin is the best example, but there are many others. Corporate money may help with the transition, but is not the ultimate goal which is sound money which is global and frictionless. 

2 months ago

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2 months ago

Various centralized corporate cryptos are coming. The trend seems irreversible once it fits globalization headed by transnational corporations well. Facebook, Telegram, Amazon, as well as many other tech giants all are looking for a bigger independence from national state governments. FB’s Libra might sounds more convincing for many people across the globe than US dollar does today. Why? Because being a product of a huge service provider Libra reflects an intention to serve public in various online interactions.

In contrast to fiat money, crypto coins emitted by famous corporations can help untie users’ hands to ignore national monetary systems with their inherent restrictions. Facebook is the most successful exemplary case in disruption of informational flows going through state borders. This is the largest network. And what is crucial for any crypto to be widely adopted? The network effect is.

And in general, this is about neither freedom nor oppression. Public will take Libra as a more convenient, faster, and cheaper way of making transactions in the same manner as we all accepted FB as a more convenient and faster means of communication.

Through their own private cryptos transnational corporate networks will create a wider gap between nation states with their outdated ponderous monetary systems and the new global world of immediate “single-click” solutions.

People are always looking for innovations that allow them achieve more with less. FB’s infrastructure needs its own coin to be a fully fledged alternative to what we used to seeing in our offline day-to-day routine – the unlimited communication will be supplemented with fiat-money-agnostic interactions. Libra will be a killer feature of FB if it is launched.

The only remaining thing is a particular precedent – which global-scale corporation will start serving public with its own crypto first. FB has a good chance to be the one.

2 months ago

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2 months ago

Avi Syed expert

Don't know much about libra, but it is just a stable coin and used just for payments etc, it never equal to BTC , they don't want Libra having volatility , so it's nothing just we feel it like them  as other TUSD, usdt.

2 months ago

Hi there, my take on this is that the future of crypto is quite bright, but competitive, which brings it to question of picking sides. The question about picking sides is quite helpful sometimes, and sometimes can be bad for some business, let me explain. It is going to be healthy cos, this will create a healthy competition among various crypto creators, to think outside the box, creating innovative products that will be acceptable and secured, yes secured, that is one thing that scares people in accepting it. On the other hand, it will be bad for some business whose crypto currency will be out of place, which will not match up to the current technological trend, and requirement of the public. So, in all everyone just needs to up their game. What i would recommend is that there should be like a global regulatory body to check these crypto creations, and how they are use, such that it will be formed by countries making use of the cryptocurrency, and open to accept members, so there will be a standard, a requirement a crypto must have before it is created, circulated, and used, a more like a centralized body to check the decentralized crypto operations for her member, this will help in a lot in terms of security checks.

Thanks.

2 months ago

stephen black expert

Hi. Unfortunately, the push back from countries against crypto will force a choosing of sides. This doesn't mean that crypto will win, or lose, but it will make people become loyal to one or the other. Yes, there will always be people who straddle the fence and use each side. Giving up the power a nationalized money holds will create a long battle. The countries issuing money will never eagerly give up their perceived leverage their currency holds. Not a strecth to say since trade, commerce, business, and most everything in our modern world revolves around our countries money as compared to the rest of the world. Realizing the ease of a crypto currency or even a similar style scares them since their perceived power is in their leverage of currency. Hopefully, a few large or at least influencial countries will make the steps to crypto and the rest will follow rather than divide over commerce and large businesses. 

I do not condone the largest corporations to create their own currencies. This was done in the US and caused a lot of deeper issues. But accepting alternate currencies would be a great step in the crypto direction.

2 months ago

ritesh verma new user

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3 months ago

Alex Draghici new user

i do not have a lot to say ,but when i talk i mean it

absolutely it is a good thing , but like any other good things comes with a boomerang effect,that will keep both sides as u say in great awarness

3 months ago

For me I will say that it is not really a mater of choosing sides but it is really a mater of the circumstances that you find yourself.

Crypto currency will not replace fiat currency at least not until into the farthest future , so for that excluding the restriction of government policies on crypto currency both of them will exist, maybe not necessarily mutual both at the same time.

since crypto currency will be used more for business and cooperate proposes, and fiat will be used more for economic purposes I still holds that both of them still have a long way to go moving along side each other.

Not until the world becomes a total global village and internet and electricity will be in abudnace, many counties will still not be able to implement crypto currency as their default means of exchange due to the large resources that will be needed to run it in terms of electricity and internet alone.

so I will say that until a very far future, there really will be no choosing sides but rather there will be using the one that fit the circumstance or the environment.

3 months ago

For me, in the long run, we all have to pick one side ether creating our opinion. In the end, we are going to find out that most of these cryptocurrencies newly formed are mainly for investment and as sure everyone will want to make immanence profit all of it.

For my opinon I see cryptocurrency been decentralized that way nobody is the sole controller of the currency and as such things will move freely.

3 months ago

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3 months ago

You are a disgrace to the Nigerian community.

3 months ago

De Gem guru

Cryptocurrency enthusiast, avid reader, rapper and SDG advocate.

Hahahahaha

3 months ago

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Just recently I have seen this video of Andreas Antonopoulos, can recommend highly to listen to his opinion. I mostly agree with him and the opinion that I share corresponds mostly with his.

1. Government-issued cryptocurrency

I think government-issued cryptocurrencies will certainly be used by people since it will be legal tender and therefore merchants have to accept it and you have to pay taxes with government-issued money. Just think about China issuing a cryptocurrency, or the EU or US doing so, this currency will/would be extremely powerful. On the other hand I assume there will be inherent problems in user friendlyness, since the government is able to coerce people to use its money.

2. Corporate coins

I see corporate coins more as tokens, not as currencies. These coins/tokens will have a value (in the case of Libra a stablecoin) but since there is no oversight, these corporations might be able to print coins/tokens at will. I see the use-case in the corporate ecosystem, like any FB user being able to send some coins to any other user, on any location in the world, but I cannot imagine that there will be transactions more than of marginal amounts. Can imagine, friends going out and send each other coins for reimbursing a drink or a meal or tipping a waiter (assuming a cash-less society). Some people might also use Libra or similar for remittance. The same I see for an eventual introduction of an Amazon coin, it will be used in the Amazon ecosystem only, for payment of all its products and services for a small discount, for affiliate commissions, listing fees with a discount if paid with the Amazon coin. But I see no incentive to Hodl Amazon coin or Libra and a corporate coin will always be a stable coin, otherwise the risk of devaluation would be to high in my opinion. Also I would not expect lots of Corporate coins being really used, what would be the incentive in owning lots of different corporate coins after all?

3. Decentralized cryptocurrency

Here I agree with Antonopoulos, with Libra or government cryptocurrencies beeing issued and used, people will begin to understand to benefits and downsides of digital currencies and some of the users will be attracted to truly decentralized cryptocurrencies like Bitcoin, to avoid the obvious downsides of both government-issued cryptocurrency and corporate coins, being the risk of being shut down or excluded from financial transactions. After all these developments, like governments bashing cryptocurrencies and trying to ban them (India and China), we will most likely see just a few cryptocurrencies survive, most likely BTC, Ethereum, Monero, since these are truly decentralized an cannot be shut down. I can also imagine, that there will rise some completely new projects, which will have even better features for decentralization and solve also the scaling problem.

3 months ago

Your points makes a lot of sense, especially the first one that's says it all concerning this topic.

3 months ago

Thank you.

2 months ago

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Al Wallace guru

Food and cryptocurrency blogger with a diverse interest in investment/ crypto

I'd love to say that i have a dream of a future where decentralised, autonomous organisations allow freedom of speech and free thinking and financial prosperity but unfortunately the cynic in me doesnt allow me. The issue for me here is that people in the cryptocurrency are a small minority and when big players like facebook and the chinese government come into play I dont really see how that plays out well in our favour. Now, im not not saying that Bitcoin and cryptocurrncy which is decentralised will go away any time soon but if a huge government that has enormous control over its citizens like is the case in China creates a cryptocurrency, surely the next step for them is to start to control the currencies which are not heavily monitored and, probably more importantly, easily taxable. 

Cryptocurrency represents a problem for large government bodies. If people continue to earn money through unreguated and therefore often untaxed investments this does not help to fund government, pay debts etc and so the governments must react to this in some way at some point. Either they force cryptocurrency to be heavily regulated to allow ease of monitoring and taxing or they stop it's use and create theri own currencies. I think that the larger governments of the world are starting to realise that there isnt a work around for this, they need to tackle it head on but they dont really know what to do it about it at this stage because an outright ban in one country might give another political or financial leverage or leave it's citizens behind in some way. Facebooks Libra coin has begun to draw attention to this, something that was until recently seen as something fairly fringe is now going mainstream. Something many in the industry have craved for a long time but I'm not convinved this is going to go the way they think. Heavy regulation and a push towards greater transparency is inevitable and I do believe, going back to your question, that it wont be a choice when it comes. We'll be forced into adopting the regulated government backed currencies or face prosecution. This might take years of course but i cant see the great and powerful governments whether democratic or dictatorial in nature allowing their citizens to run amok and avoid taxes for long. 

3 months ago

De Gem guru

Cryptocurrency enthusiast, avid reader, rapper and SDG advocate.

I agree with you too well.

3 months ago

De Gem guru

Cryptocurrency enthusiast, avid reader, rapper and SDG advocate.

Hell yes, we would end up picking sides! But not any of the two you've mentioned. I believe we will pick a third side - us! or the public if you'd like to call it that way. And we're already doing that. Let me explain.

Let's admit it, we hate governments and the controlling nonsense they exert over us all the time. We are told a lot of the time that we're in a democracy (in my country at least and a whole lot of other countries) which truly isn't the case. The various governments in our countries are actually national controlling mechanisms belonging to a select few in the country. Is it coincidence that Bill Clinton becomes president and his wife runs for president a few years later? I don't think so. Is it coincidence that George W. Bush and his daddy both became presidents of the US? No, I don't think so. In my country Ghana, the current president Nana Akuffo Addo is the son of our former president Edward Akuffo Addo. It's never a coincidence. What am I trying to say? They always want power to be centred in their hands and to do that, they'll do it in the name of "Government" in a "democracy" but truly it's not. Is the government not supposed to be of us, by us and for us as we were taught? Yes, but what do we see? Presently, it is of us (through votes), by us (through a constitution) but NOT FOR US! Who poses a threat to these governments? Corporates and the people!

When corporates come to wield too much power, they abuse it, especially through price monopolies. They begin to function just like governments. The funny thing is both the government and the people hate that, which actually goes to show that nobody wants his/her freedom taken - even the government. History is replete with lots of corporations that have been shredded to pieces just because of their monopolization. Who suffers the most though? The people (public). As you suggested, competition is what keeps most corporates at bay and presently there  is enough competition for most corporates. However, the people can't compete, except of course there's a saviour now. Cryptocurrency!

It might surprise you to know that governments don’t have any money of their own. It’s simple, they have outgoings, just like you, and they have income. A government’s revenue comes from selling debt, from taxation and other sneaky
ways which the people and even corporations actually hate. Most central banks print money at will (out of thin air and backed by nothing) to give to the people from which taxes are again taken. Cryptocurrencies remove this unnecessary defect. Consider Bitcoin. First, there are only 21 million BTC in existence, secondly it is owned by the people, not the government and finally, it gives the people freedom to manage their money however they like it. This is why governments are against it so much. The government can't print extra Bitcoins and tax the people on top again and this holds true for all other cryptocurrencies. Neither can it cause inflation or deflation because, with cryptocurrencies, fixed number of coins/tokens won't allow that. This removes it's power completely. A lot of governments make their money through inflation. Have you ever wondered why prices of commodities increase but salaries don't increase correspondingly? No wonder China is putting in measures to create its own centralized blockchain cryptocurrency. They want to stay in power. Corporates have started doing the same because they want to stay in power as well. Governments and corporates are doing their best to put down Bitcoin especially, through creation of their own cryptocurrencies. But you know what? I believe in the long run, the people will win. And they will do so through crypto starting of course with Bitcoin. There is no stopping this. 

"So whether FB becomes a winner or other Crypto projects become the most successful crypto business, the outcome will be the same". I disagree with this one. There might be Libra and a host of other corporate coins but one thing remains. The people want their freedom and thy will get it through decentralized cryptocurrency, not centralized ones. It took nine years for governments to actually take notice of BTC to convene world leaders for a decision on it. NINE years! And you think the crypto community (Bitcoin) has been sleeping since that time? Hell no! In a few decades, people will be switching to more sophisticated coins such as Monero (which is completely untraceable) and Zcash. I wish you a future REST IN PEACE, Governments and Corporates.

3 months ago

To be honest, it is very difficult to predict the future of economic development while enjoying the basic human rights, freedom. Most governments want to enjoy monetary rights (eventually it is power), so they are enforcing regulations on cryptocurrencies. USA goverment and South Korea in particular are tightening their regulations. In other words, governments don't want to share their power with ordinary firms (large companies such as FB, Amazon and Samsung). If the cryptocurrency issued by an ordinary company is valued as a currency, the state will have anxiety that it will lose its right to national currency (specially US Dollar, which is the world key currency) and eventually lose its right to economic policy.
Although Governments may not want to miss their longstanding vested interests, but it is clear that the public's desire for the Denationalization of Money is emerging. Rather than competition between governments and corporations, the general public's awareness of free life and economy will play a decisive role in the choice between FIAT currency and Cryptocurrency. In this sense, I think the public's desire for the Denationalization of Money will be the winner.

3 months ago

I don't know much about libra, but it is just a stable coin and used just for payments etc, it never equal to BTC , they don't want Libra having volatility , so it's nothing just we feel it like them  as other TUSD or Paxo etc :)

3 months ago

You do have the possibity of anti trust issues where one buisnes used to doniminate a second business.  Big business pays huge amounts of money in credit card processing fees while other buisness rebates credit cards to shares instead of cash.  So really there are two business crypto and payment processing that the Walmarts of the world are after and they may not care so much about what currency it is in before it becomes dollars.  Rick Rule would say "He is a consumer of currencies".  

3 months ago

Both parties are relevant but I believe the rise is has been with the private and the publication finding ways to control that rise. I think its going to be tough but it will be successful. Governments do stuff but the private provide solutions and bring relief.

3 months ago

Dean Walsh guru

Don't listen to me because of who I am, I'm nobody like everone else.

Fiat currency is created by commercial banks when people borrow money. Banks are corporates. Fiat currency is therefore already corporate money. But the whole thing is shrouded in enough secrecy that most people don't know (and aren't interested to find out) how it all works and even if they did all that history through the decades when people definitely didn't understand has built up a lot of inertia. 

I don't think new corporate currencies will succeed because they won't have the benefit of being established for decades before anyone realizes they are corporate. People don't trust government, but they distrust Facebook at least as much and Facebook don't have guns. They also won't have the cosy kick backs to government through the lending process which keeps government's superficially solvent, which in turn is what keeps the banks in the privileged position of having their corporate currency turned into an enforced monopoly through state power.

If major fiat currencies fail through some sort of hyperinflation then maybe a new corporate currency will be able to negotiate a suitable bribe for the government to become the new standard, but otherwise I think it will continue to be government enforced corporate fiat vs peer-to-peer.

3 months ago

Karen M guru

As long as there is competition, there will be sides. I don't see a future where there is only one, whether it's one currency, one product, one  service or anything else. Therefore, sides, or preferences will be picked. Competition can be healthy and everyone is entitled to their opinion.

3 months ago