For many cryptocurrency advocates, tokens represent much more than just a digital store of value. They represent, for the first time in modern history, the opportunity to create an economy that is free from centralized control, even governments. But many, especially those invested in those legacy institutions, are skeptical that this type of future could ever exist
“No government is going to put up with it for long,” said Jamie Dimon. chairman and CEO of JPMorgan Chase, while speaking to an audience in San Francisco in January. “There will be no real, non – controlled currency in the world.”
Decentralized consensus may be acceptable for recording events or storing medical records, but for one reason or another, many find it unlikely that cryptocurrencies will one day replace government – backed. fiat currency.
And the governments themselves have all been treating the advent of the digital economy differently. Policies vary widely, from Japans Virtual Currency Act. which states that bitcoin is an asset and form of payment method, to Bangladeshs warning that conducting transactions in cryptocurrency could result in serving as much as 12 years in prison. Morocco. Ecuador and Nepal have outright banned cryptocurrency. Australia. Canada and the United States are taking steps to regulate cryptocurrency in some way.
Naysayers aside, another, telling reaction from some of the worlds governments has been to try out blockchain technology for themselves. Estonia has done this with its e-Residency program, which runs a distributed ledger that can hold all pertinent personal data for each citizen. Other governments are exploring the creation of government-backed cryptocurrency (GBC). China. Russia, the United States. Canada. Japan. Uruguay and Sweden have all publicized that they are exploring the potential for a fiat currency based on a blockchain.
Its hard to say whether a given GBC would truly embrace cryptocurrencys potential to create a transparent, decentralized economy. While some may. others might end up with the same issues that plague many fiat currencies, namely burdensome, centralized control.