The economic crises are shaking the foundations of any nation. With the emergence of the cryptocurrencies and the digital money opened a new window to search for possible solutions to the States. Many Latin american economies facing devaluation of their own currencies for different reasons. Just look at the collapse in the price of the venezuelan bolivar just to cite a specific example in the region. However, this local currency has not been the only one that has experienced declines in its value. Now, the explosion of the world of digital currencies has been so strong and the value of Bitcoin has been so high, that now the governments have started to think about digital money, in this sense it is valid to emphasize that, at the time of use cryptocurrencies to combat inflation, you should bet on those that have a generating algorithm the default.
Digital currencies in the united States
Since some time ago, the governments of different countries have been announcing the intention to incorporate their economies, digital currencies created by themselves. Assuming that these digital currencies are based on Bitcoin and other cryptocurrencies, we can interpret that they are going to work in a similar way. In any case, we can observe that not only Venezuela if not other countries such as Sweden, China, Estonia, Russia, among others, are pointing to that direction, as well as the European Central Bank is debating on whether or not to introduce a criptomoneda own. Then what would be the reasons that you could have a country to create its own criptomoneda?
Decrease the use of paper currency
In my opinion, could have great advantages for governments in creating your own criptomoneda. The first that comes to mind is to decrease the use of paper ticket, which is expensive to create, maintain, circulate, and secure.
It is easier and faster to create a wallet of a criptomoneda to open a bank account. To create a wallet you only need an id and this would include more people in the economic system. The execution of transfers are a lot faster and more efficient than the banks.
The system promotes the transparency and the unique records. The accounting book or ledger more decentralised allows you to access it freely, at any time, to verify the transactions of cryptocurrencies that have been recorded and cannot be modified. The transactions performed by these systems are safe because they cannot be reversed; they can only be reimbursed by the person who receives the payment. Bitcoin can detect typos and usually don’t allow to send money by mistake to an invalid address.
International transactions safe
Facilitates international transactions. The respect that has earned the technology Blockchain on the part of technology companies and financial, has made companies, financial institutions or people of different nationalities, to be able to operate and perform electronic payments with the same virtual currency.
Transformation for the remittance
The significant advances in technology and telecommunications have transformed the sending of remittances, a market that used money orders, the other current is dominated by electronic transfers, that reduce costs and time and reach out to remote areas and of difficult access. The cryptocurrencies allow access to the network to 4 billion people who do not have possibilities to operate with banks, credit cards or other means of payment and need to make remittances, export and import goods, etc., as Well, can operate through the internet or a mobile application to make these electronic payments, and other operations.
A step towards the future
The new forms of digital money are “reducing the importance of money in cash”. In addition, some central banks are interested in using technology to reach the hundreds of millions of people who do not have a bank account or access to modern financial service. Finally, the majority of central banks believe that replace paper tickets by the digital would be saving money. Bitcoin has been successful because it is a decentralized network and has proven to be solid as a technology over time in spite of their volatility. On the other hand, governments have the power to impose the use of their cryptocurrencies and therefore we could see a rapid adoption of the same. Only time will tell if they are sustainable over time and that post will take Bitcoin in this picture. The new payment technologies, including cryptocurrencies, are changing the global financial system, and central banks need to understand how it will affect you. In short, the new technologies trasformarán the financial system regardless of whether the central banks whether or not they are prepared. The following two tabs change content below. Venezuelan, student of the last semester of Social Communication. Attracted by the new technologies and the development that they offer to humanity.