[EN] emeeseesenews: The boom of state cryptocurrencies
Every day, events in the world of cryptocurrency bring us important and relevant news that make it literally impossible for our @emeeseese team not to feel compelled to bring an analysis of them through our #emeesesenews.
On this occasion, the news that is becoming increasingly biased in cyberspace is the growing interest of different governments in the world to put cryptoactives born into circulation, nothing more and nothing less, than within their own treasuries or central banks. which seems to be a contradiction with respect to the decentralized model on which the issuance of digital tokens is based.
The Paradox of Government Cryptocurrencies
As we have commented in previous articles, part of the idea that originated the creation of bitcoin (original cryptocurrency) was that users could develop decentralized means of payment, in opposition to the model of traditional fiduciary currencies dependent on a centralized governmental monetary policy.
From the above, we can establish as a kind of paradox in the fact that a national government, as a centralized entity of power, evaluates the creation of a financial means that is essentially decentralized and that, at least in theory, could not be regulated through its monetary policy. What is behind this interest? How can cryptoactives contribute to the development of a country's economic policy? These are part of the questions that we will develop in this new issue of #emeeseesenews
When the bytes replace paper and metal
One of the reasons why some countries advocate the implementation of digital currencies is the need to replace cash as a means of payment for commercial transactions, due to the high costs of printing and maintaining fiduciary currencies and a growing perception of anachronism of this means of payment
In the case of Sweden, for example, its Central Bank announced its plans to create a national digital currency with the name of e-krona from november 2016, in response to the decrease in the number of coins and banknotes in that country. For similar reasons and with the support of the Swedish model, countries such as: Switzerland, through its electronic franchise or crypto-franchise, Israel and its digital shekel or the case of Japan with the proposal of J-Coin, are committed to the creation, in the near future, of virtual monetary units, which replace those that physically exist in their monetary cone.
Particular case, is that of Venezuela and its emission of Petro, cryptocurrency that was initially presented as an alternative to the dramatic fall in the purchase value of its fiduciary currency: the bolívar and now seeks to be a reference value to rescue said value, in what would be an unusually inverse case to what usually happens, in which a cryptocurrency takes advantage of a fiduciary currency.
Evade economic sanctions through cryptocurrency
It is well known that the dollar, like the euro or the yen, are widely used in commercial exchanges that take place around the world. The United States and its allies, through a series of economic sanctions, have forced other countries to seek exchange alternatives that allow them to continue trading internationally, once again cryptocurrencies seem to be the solution.
Russia, since 2017, announced through its Minister of Telecommunications: Nikolai Nikiforov, that President Putin had approved the creation of a digital currency, which could be created from Ethereum and that would solve the problems of international exchange generated by sanctions imposed for the United States and the European Economic Union.
In the same order of ideas of Russia, Iran and Venezuela seek to resolve, through the creation of cryptocurrencies, economic sanctions imposed on their respective countries as measures of pressure to generate changes of a political nature and protection of human rights. We also have the cases of Kazakhstan, where the issue of the Cryptotenge (linked to the fiduciary currency) is evaluated; and Cambodia, where there was talk of creating the Entapay, all in order to be able to evade the economic sanctions imposed by international organizations.
At the forefront of financial operations
Just as some countries see in physical means of payment or economic sanctions more than justified reasons to access the possibility of issuing digital money, others understand that this type of digital environments are the most favorable for the development of financial payment models, in virtue of which they wish to be at the forefront in this type of "monetary technological boom".
We have the case of China that seeks the development of a digital hybrid currency that brings together all the benefits of the decentralized model of cryptoactive, but with the guarantees of monetary control provided by the centralized model of the fiduciary currencies, or the one of the Marshall Islands that already announced the issuance of the "Sovereign" (Sovereign) that can be used as the US dollar in the national territory, we also have the example of Dubai that last year made public its intention to issue its own cryptocurrency called emCash, as the new payment mechanism of governmental and non-governmental services.
The reasons why many governments add to the increase in financial models based on cryptoactives are varied: some due to economic need, others to be able to face international sanctions and others to be in tune with the new global perspectives, the certain is that cryptocurrencies are a resource that is gaining more importance and whose influence is increasingly difficult to hide or limit by the countries of the world. Are we on the threshold of a revolution in the global financial system?
We hope that this installment of #emeeseesenews has been to the liking of our wonderful community, once again we hope your very accurate opinions and suggestions about it, see you in a next installment of our digital newscast.
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We are in the era of cryptocurrencies, in addition to being unrolled and they are a great help for the economies, however in my ipinion, in the case of Venezuela I do not know the first person who has invested in Petro. why? For nobody is a secret that the Venezuelan government is cataloged internationally as a dictatorship, a government that lacks credibility and reliability, so I see that new system that they want to implement the Sovereign Bolivar anchored in the Petro is a strategy for them stealing and not to benefit the people.
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Seems like this is happening. And it's good.
In the countries where central banks have their main infrastructures built up, there will be a fight against crypto because it directly comes into competition with them. But where central banks don't have a strong history and infrastructures, such as third world countries and small island nations that still have high speed fiber, some of these nations will embrace it.
hopeing for good times
Moving towards digital currency is inevitable really