Will Blockchain Knowledge Fuel Digital currencies or Force Higher Government Responsibility?
Currency is anything that is universally acknowledged as a means of exchange by all people. Individuals and corporations use money to carry out their transactions.Money can buy anything if everyone recognizes and accepts it. Additionally, money enables people to save for their future. They can also invest their savings on various projects.
Government’s Role in Issuing Money
The government is the only legitimate institution that can issue currency to its citizens. Most worlds’ currencies are losing their value as dollar continues to dominate. This depicts that individuals, might lose faith in their native currencies and trust the American dollar. Citizens usually have faith in governments that manage their money responsibly.
Any state that issues currency irresponsibly might cause inflation. Most states issue more money to gain political mileage and advance short-term agendas. Again, the public loses confidence in a devalued currency resulting from inflation. A fundamental issue is whether the leaders are in a position to resist greed associated with money. This is because most citizens trust in their currency when performing well.
Accounts reveal several economies in the world that succumbed to trading pressures. This influences individuals, making them prefer the new currencies over traditional money. The American dollar may in future, be overtaken by another currency from a different nation. Such a currency will be in a position to gain global recognition.
Technological progressions have enabled various institutions to issue and maintain money. Previously, this task was a preserve of the government only. Blockchain gives the public an opportunity to handle money through technology. The digital money is gradually gaining faith among many citizens. Lack of identity verification related to traditional currency has made many people embrace the blockchain technology.
The Use of Money in Managing the Economy
Printing of money is a tool that the state uses to manage the economy. Without money, the government cannot afford to implement its policies to the electorate. Appropriate regulations must be put in place to safeguard the cryptocurrencies from defrauders. The government might once more be forced to be accountable while handling public affairs.
A state can no longer use currency to exploit its citizens. This is because its members can save their resources using the digital money platforms. Therefore, cryptocurrencies might be universally accepted across the globe like the US dollar in future. Lawrence Bergenfield, a marketing expert also advises new technological businesses on how to conduct their affairs.