Over the last few months, we have seen countries creating or preparing to make cryptocurrencies including China, Ecuador, Senegal, Estonia, Russia. The reason that countries are looking at cryptocurrencies(Cryptocurrency) is they see it as a way to efficiently and cheaply move forward in many areas including
- digital payments – if you have been in Asia especially China in the last two years you would have seen the vast number of people using digital payments to pay for nearly every transaction.
- productivity – reducing the time and actions required for transactions
- tracking illegal activity – there some people using Cryptocurrency for illegal activities, if countries start to limit the currency exchange to their countries Cryptocurrency then they can track transactions more easily
- control – central banks like to control currency, they will most likely declare their Cryptocurrency to be legal tender (fiat) in their country.
- reduce volatility – by being able to control the currency they will try to reduce volatility and rein in runaway markets and use levers to manipulate their market. This is most likely why some countries have shut down ICO and currency exchanges so they can start their own Cryptocurrency.
- generate revenue from transaction fees
- reduce fraud
- ease of exchange – currently every time you go to another country you either have to used credit cards or exchange for cash. If you can exchange on your phone from one country’s Cryptocurrency to another you will be able to move more freely between countries.
There are still some issues with countries creating Cryptocurrency and that includes public acceptance, security, exchanges. The future will be interesting and how the world will change in the coming ten years around cryptocurrency. We will most likely see several countries with their own currency such as estcoin, DAD, and more.