Will all countries eventually digitize their currencies?

The end of paper money will happen for sure. Most of us already use debit cards for most purchases.

But there is a bigger shift on the way, with central banks issuing national cryptos side by side with fiat, which will likely phase out fiat eventually. There are plenty of examples of this type of thing historically as monetary instruments become obsolete or transform with technology.

The article below has more info on all this. The 'Banker's Bank' (BIS) in Switzerland is already seeing this trend with central bankers.

https://qz.com/1655896/facebooks-libra-forces-central-banks-to-tackle-cryptocurrencies/

Comments

    CryptoHunterCryptoHunter Reputation: 18
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    All of these things are true but it will take 50 years not 5. For decades sketchy investment outfits have been saying that the end of the dollar is coming. This has usually been to induce people to make ill-advised investments in precious metals, usually at ridiculous retail premium. Now the same the schpeel is being used for crypto. The story is usually that the US debt is unsustainable, that the gov is just printing money uncontrollably and it is a mathematical certainty that it will all soon collapse. It hasn't happened and it isn't going to happen.

    I agree that virtual currencies will certainly gain popularity through useful features like smart contracts, and that will lead to old-fashioned money being phased out. But this will take decades.

    0a53f175e482669a7cebde3f671c1eb1
    PACMANPACMAN Reputation: 10
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    @cryptohunter thank you. The end of the US dollar is not coming and people who invest on this premise are unfortunately being tricked.

    851f30758f4b7803573cd5ffb25017ad
    DNXDNX Reputation: 14
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    one thing is for sure crypto is getting the govs attention. https://fortune.com/2019/07/15/bitcoin-crypto-trump-tweets/

    they see the threat and are scared of what the people can do if they take currency matters into their own hands and will do everything to stop it.

    3238c1e86b7d2252697b487122e8308e
    MGlobalMGlobal Reputation: 36
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    The IMF's Acting Managing Director David Lipton has also joined the conversation this Monday, in the Financial Times. Basically, he is saying that the benefits offered by technology will need to be reaped while minimizing risks which are summarized as follows:

    1) Creation of monopolies by tech giants using their own networks shutting out competitors
    2) Threat to weaker currencies - in much the same way as for example the USD that's universally being accepted in Lebanon in parallel with the Lebanese pound. The effect of this is to undermine economic growth and monetary policy.
    3) Customer protection and financial stability
    4) Money laundering and fostering of other illicit activities
    5) Loss of "seigniorage"

    There is a paper issued on the subject by the IMF available here, for $4.99:
    https://www.imf.org/en/Publications/fintech-notes/Issues/2019/07/12/The-Rise-of-Digital-Money-47097

    I could not link the FT article as I am not a subscriber.

    cd40a4f380136f0e2038632cac14a690
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