Cryptocurrency by definition are non-governmental, right?
“For the ‘other 6 billion’ who don’t enjoy international, control-free banking as we do, bitcoin represents an opportunity to become part of a global economy which up till now did not exist. For those users, bitcoin is more than just a curiosity, it might be a doorway to connect to the world.” — Andreas Antonopoulos
The whole idea of cryptocurrency is that they should be:
We have come to understand through cryptocurrency the errors we all have made by trusting entities and governments to CONTROL our money, but not only that, we have seen the damages of centralized authority (repeatedly), entire populations suffering because of it, as it is the case with Greece, as well as Venezuela´s economic misery caused by dictatorship.
“(Expropriation)…in Venezuela, dozens of companies had their assets confiscated by the government, the opponents of the Maduro (current president) regime could not even keep their lives.” — Via Cointimes
Up until Bitcoin showed up along with Nakamoto´s remarks, most of us had never questioned about the fundamentals of money, and what gives its value or the reasons why we have come to trust centralized authorities more than ourselves. When and why did we decide that putting our values into fiat was a good idea? Why did we choose to blindly trust banks and governments?
My point is: how we see money is changing radically.
Through the concept of cryptocurrency we understand that money goes beyond paper, control, and inflation as Andrea Antonopoulos bitcoin expert, says — “money is a language” an expression used to exchanging values, and it could have so many use cases in the form of tokens and cryptos, if only we remove the need of control.
“Language, a system of conventional spoken, manual, or written symbols by means of which human beings, as members of a social group and participants in its culture, express themselves. The functions of language include communication, the expression of identity, play, imaginative expression, and emotional release.” — via Britannica.com
Therefore, we recognize that everything a cryptocurrency denotes does not appear to fit with any country´s agenda. So, why would a government choose to create their own national “cryptocurrency” if it most likely will not hold any of its values by definition?
Will they be:
1. Decentralized? And lose control? Never.
2. Immutable? Well, if they operate on the blockchain they will have to be.
3. Transparent? Maybe. But are governments ready for blockchain level transparency?
4. Global? Definitely not.
There are two possible reasons (in my opinion) countries may be interested in creating their own national “cryptocurrency”:
1st — Government’s do not want to stay behind; they want to make sure they are part of the game somehow because they recognize the power of blockchain and cryptocurrency. However, they are not ready to fully embrace it, so they want to create a way of their own to take part in it; even though national cryptos are far from legitimate cryptos by definition;
2nd — Governments want the benefits like the effectiveness, the speed and the cost-efficient system, P2P transactions, to be able to efficiently and accurately regulate the money supply, easy tracking and crack down on tax evasions, etc. while remaining in control.
Let´s take a look at a case scenario where a decentralized cryptocurrency has played a role in a nation.
As mentioned above Greece has been harshly affected by centralized authorities, a debt crisis that caused banks to shut down, people were left to nothing, living day by day without knowing how they would survive until bitcoin with its P2P transactions became the way of enduring for some.
Citizens now had the chance to place the only value they had left somewhere else, they were able to receive help and survive by using bitcoin, mind you,a decentralized protocol unaffected by the government.
Borderless as a cryptocurrency should be — functioning at its best.
Now, let’s take a look at Venezuela´s circumstances, where people are (as I write) leaving the country on foot because they are starving. Centralized authorities inflated the national currency until it no longer had any value, or barely any value, according to CNN Business Bolivar lost 96% of its value. People are perishing for lack of basic supplies; citizens including thousands of children are suffering in hospitals without medication and supplies, with empty shelves all across the land, and so on.
The citizens of Venezuela have lost almost all of their value because they had their value stored in the Bolivar (as with any citizen who has their value invested in fiat currency).
As seen with Greece, cryptocurrencies like Bitcoin and Ethereum could be a good option for countries with hyperinflation issues because citizens will have an alternative to the crisis (for the first time). But what good would a national (centralized and controlled) cryptocurrency serve a country in such conditions? Wouldn’t it be just another Bolivar?
Nicolas Maduro the president of Venezuela is the person behind the creation of Petro, a national “cryptocurrency” backed by oil, gas, gold, and diamonds (which people will have to trust they even have such raw commodities).
“Petro is born, and we are going to have a total success for the welfare of Venezuela”. — so he says.
We are all attempting to understand just how exactly will Petro help the citizens of your country Mr. Maduro?…It would have been more reasonable to make Bolivar digital.
Why should people trust Petro instead of Bitcoin for example? They shouldn’t. Once the citizens of Venezuela recognize bitcoin can carry value and not be affected by their government choices, they will understand why not to invest in Petro.
National cryptocurrencies do not make sense they are just another fancy name for conventional currency.
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.” — Satoshi Nakamoto
As cryptocurrency believers our trust is in the PROTOCOL, transactions are set and done as each party responds and corresponds with the contract, discriminating no one, its rules are for everyone and under the control of no one. I do not need to trust you, and you do not need to trust me. Open, recorded, transparent and safe. Period.
Cryptocurrency has come to connect the world, fight back control, corruption, and to give people back ownership of their own assets.
“If you don’t believe it or don’t get it, I don’t have the time to try to convince you, sorry.” — Satoshi Nakamoto (He said it, not me.)
According to FXEmpire nations that have issued their own national cryptos include Ecuador, China, Senegal, Singapore, and Tunisia — and some looking to issue sometime in the near future are, Estonia, Japan, Palestine, Russia, Brazil and Sweden.
Needless to say, not every country is like Venezuela, so considering each country´s issues, values, and economic conditions let me know what your thoughts are in the comments.
Why (in your opinion) do you think these governments are choosing to acquire their own crypto, and if you think it is acceptable or not.