War For Control Over Money: How Can Governments Respond to Crypto?

Sure, the odd finance minister and president has praised blockchain technology or even cryptocurrencies themselves on the rare occasion, but …
War For Control Over Money: How Can Governments Respond to Crypto? 101
Source: iStock/duncan1890

Governments have never really been big fans of crypto. Sure, the odd finance minister and president has praised blockchain technology or even cryptocurrencies themselves on the rare occasion, but generally the overall mood has been one of suspicion and even outright hostility.

And now, with Facebook entering the industry with its Libra stablecoin, this barely concealed opposition to cryptocurrency has become fully manifest, in various ways. U.S. President Donald Trump openly slammed Bitcoin and Libra in July, while a number of governments have already begun flirting with the ideas of cryptocurrency bans and central bank digital currencies.

Both of these potential responses are being conceived as a means of neutering the threat posed by decentralized or private currencies, such as Libra, to government monopolies over money. But as numerous cryptocurrency experts report, it’s likely that ‘improving fiat currency’ won’t be enough on its own to reduce this threat, given that the main benefit of crypto is its divorce from governments, central banks and other centralized institutions.

Fear and the futility of banning crypto

Governments love banning things. Bitcoin and cryptocurrency is no exception to this, as evidenced by their complete or partial prohibition in the following countries: Afghanistan, Pakistan, Algeria, Bolivia, Bangladesh, The Republic of Macedonia, Saudi Arabia, Vanuatu, and Vietnam (all complete bans); China, India, Ecuador, Indonesia, Morocco, Zambia, Nepal, Egypt, American Samoa, and Qatar (all partial bans or restrictions).

1xBit

However, as trigger-happy as various governments have been in recent years, it’s clear that banning cryptocurrencies isn’t really a viable way of reducing the threat they pose to the governmental monopoly over money.

“Some governments have tried to ban cryptocurrencies but this hasn’t stopped people from using them and the industry expanding,” Iqbal V. Gandham – the managing director at eToro UK – tells Cryptonews.com.

“If people want to use these tokens, there is little governments can do to stop this. It would be like trying to ban the internet.”

This ‘unstoppability’ is a large part of the reason why governments are scared of crypto. And now, the emergence of Facebook’s Libra stablecoin has raised the specter of a private currency becoming a genuine rival to national fiat currencies, as explained to Cryptonews.com by Glen Goodman, the author of The Crypto Trader.

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“Facebook’s Libra is the first cryptocurrency that truly scares major governments, even though it doesn’t even exist yet,” he says. “Donald Trump summed it up in a tweet, when he slammed Bitcoin and Libra, saying the dollar will ‘ALWAYS’ be the world’s dominant currency. He knows the U.S. gains major economic benefits from that position and no doubt he’ll do anything to protect it from pretenders to the currency throne.”

Digitizing fiat

So governments are scared of cryptocurrencies and they can’t satisfactorily ban them (at least not in the case of decentralized coins). So what can they do?

Well, they can try creating their own central bank digital currencies (CBDCs) and/or digitizing existing fiat currencies.

“Governments will try to centralise [crypto],” predicts crypto advisor Sydney Ifergan, “and at the same time, turn it to their advantage.”

This has already happened in the infamous case of Venezuela’s Petro, while the likes of China, Sweden, Ukraine and Uruguay have been researching or planning their own CBDCs. Similar moves have been rumored for Iran and Russia, ostensibly with a view towards evading American sanctions.

On top of this, the United States Federal Reserve has recently revealed plans to create a central bank-led nationwide payment system in the U.S., making it faster and more efficient, and potentially superior to Bitcoin and other cryptos in terms of performance.

But is it better?

The question is, even if major nations do launch their own centralized cryptocurrencies or new digital payment systems, will superior performance alone be enough to neutralize the threat posed by crypto to national monetary sovereignty?

Well, for starters, it’s not even clear that a central bank-backed CBDC or payment system would be technically superior to major cryptocurrencies. And as cryptocurrency author Mark Jeffrey explains, the development of such projects will be slowed down by the centralized, unwieldy nature of the organizations driving them.

“Recently, the Federal Reserve announced a real-time payment system called ‘FedNow.’ However, ‘FedNow’ won’t be available until 2023: laughably far in the future,” he tells Cryptonews.com.

“This is like watching the taxi industry try to respond to Uber: the attempts are somewhere between comical and sad. The Federal Reserve has never been forced to innovate and compete: they have absolutely no idea how to do it.”

More fatally, there is also their lack of decentralization, which stands as the main selling point of true cryptocurrencies.

“Cryptoassets like Bitcoin are not about the digitalization of money,” says Iqbal Gandham. “The whole reason Bitcoin was created was its ability to bypass financial institutions, like banks, and issuing authorities, like governments, in a bid to create a currency that was borderless and decentralized. “

“Merely tokenizing a traditional fiat currency so that it can be traded on the blockchain will not challenge the premise in which cryptoassets, including Bitcoin, were created.”

It’s for this reason that crypto has an advantage against CBDCs or real-time payment systems for fiat. Yes, they may potentially end up being faster than many cryptocurrencies, but a relative lack of speed hasn’t stopped Bitcoin from gaining traction over recent years, for example, despite the fact that the Visa network was and still is faster than its blockchain.

Should society start valuing monetary freedom more than speed (which is really a solvable technical problem) and price volatility decreases as the market matures, the traditional fiat money system might face some serious questions about its future.

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NBA team Dallas Mavericks to accept Bitcoin as payment

The news comes as part of a partnership with BitPay, who also made it … BitPay confirmed the news on Twitter by writing: “Happy to have you in the …

The Dallas Mavericks has become the second NBA franchise to accept Bitcoin as a method of payment for tickets and merchandise.

The news comes as part of a partnership with BitPay, who also made it possible for AT&T customers to pay their phone bills with Bitcoin in May.

BitPay confirmed the news on Twitter by writing: “Happy to have you in the #crypto game @dallasmavs.

The Sacramento Kings was the first NBA team to accept Bitcoin as payment for tickets and sporting goods, adopting the payment method back in 2014 when Bitcoin was worth just $800.

Earlier this year, the Miami Dolphins also secured a partnership with Litecoin, with Charlie Lee’s project becoming the team’s “official cryptocurrency”.

Happy to have you in the #crypto game @dallasmavs 🏀⛹️‍♀️⛹️‍♂️🏀 https://t.co/DdYRlzWZan

— BitPay (@BitPay) August 13, 2019

On Monday, boxing legend Mike Tyson announced that he has signed a deal with the Fan Controlled Football League (FCFL). The deal will see him give away sporting memorabilia via Wax’s blockchain.

All of these steps by major sporting figures and teams will help drive mainstream adoption of cryptocurrencies in the future.

Facebook’s announcement of its own native cryptocurrency, Libra Coin, has also added legitimacy to the digital asset ecosystem. It’s certainly a far cry from years ago when Bitcoin was touted as being a method of payment for illicit goods by institutions and the media.

For more news, guides, and cryptocurrency analysis, click here.

The post NBA team Dallas Mavericks to accept Bitcoin as payment appeared first on Coin Rivet.

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Mavericks Become Second NBA Team to Accept Bitcoin for Tickets, Merchandise

“The Mavs will utilize the service provider BitPay to process all Bitcoin purchases,” the team wrote in a statement. “BitPay, the largest bitcoin payment …

The Mavericks are the second franchise to accept Bitcoin after the Kings began the practice in 2014.

By Michael Shapiro

August 14, 2019

The Mavericks are now accepting Bitcoin as a method of payment, the team announced on Tuesday.

Dallas is the second NBA team to accept Bitcoin. The Kings began accepting the cryptocurrency in 2014.

“The Mavs will utilize the service provider BitPay to process all Bitcoin purchases,” the team wrote in a statement. “BitPay, the largest bitcoin payment processor in the world, offers the Dallas Mavs’ global fans a seamless experience to purchase tickets and merchandise with the Bitcoin Cryptocurrency.”

Mavericks owner Mark Cuban has previously invested in companies that feature cryptocurrencies, including the Seattle startup Unikrn and the crypto-based venture capital fund 1confirmation, per CNBC.

Cuban became the Mavericks’ majority owner in 2000. Dallas has reached the playoffs 15 times in his 19 seasons as owner.

The Mavericks will begin their 2019-20 season at home against the Wizards on October 23.

Dan Holdings Africa a Digital Wallet and Crypto Trading Platform in Africa

Dan Holdings Africa, formerly The Danny Oyekan Group’s African Subsidiary, to launch in Africa, with its main aim; Developing the blockchain and …

Dan Holdings Africa, formerly The Danny Oyekan Group’s African Subsidiary, to launch in Africa, with its main aim; Developing the blockchain and fintech ecosystem in the continent and also invest in Fintech and Blockchain Startups in Africa Through its Venture Capital Subsidiary, Dan Ventures Africa

For the first time in Africa, people can transact and use cryptocurrency with ease and also make payments across borders in a safe, modern and technology-driven infrastructure with a click of a button. Dan Holdings Africa is set to launch several financial services in Nigeria and across Africa. The company will launch the services in different phases starting with Telechat which is a Privacy-focused blockchain-enabled messaging application, with a decentralized wallet that allows users to send and receive money to/from anywhere in the world. Similar to the way one sends a message or a photo. This will address the problem of the time it takes for a transaction to take place.

In addition, the company will launch Coins App which is a digital wallet for cryptocurrencies. The native cryptocurrency will be backed with actual Gold. This will address the price volatility of the digital coin and also ensure that the value of the coin is retained. This will also aid in remittances across borders around the world. Coins App will allow users to send and receive, request exchange rates, deposit fiat into Crypto and withdraw crypto for fiat and top-up phone bills with crypto.

The blockchain technology and the use of cryptocurrencies is now a worldwide accepted form of undertaking transactions. Its decentralized quality makes it safe from hackers. It is also borderless hence ease of conducting transactions between different countries. This type of infrastructure is yet to be fully available and accepted in Africa hence the innovations by Dan Holdings will address this gap.

Dan Holding Africa aim is to provide a one-stop centre for all your financial needs. Every customer is assured a secure environment to undertake their businesses and also investments. For the first time ever, all Africans will be in a position to undertake transactions across the globe at a lightning speed. This will be made possible by the launch of Blockfinex, a cryptocurrency exchange. It will set the pace in the market as it is the fastest exchange today at a blazing speed of 27 million transactions per second.

The launch of these platforms and services has been designed to serve the customers in accordance with their needs. The company will ensure that it understands the customer’s financial needs and formulate the best strategy to use to assist the customer. Dan Holding Africa has also made its platforms and services user-friendly to ensure ease of usage for all ages and people around the globe.

Dan Holding expects Cash will be a game-changer as it will be like the PayPal of Africa offering a variety of services to customers. It will have the functionalities of an online bank offering the following services:

  • Peer-to-peer payments between users (Send and receive money to/from Family and Friends)
  • Payment processing for merchants and Businesses
  • Prepaid debit cards
  • Currency Exchange platform
  • A cryptocurrency wallet
  • Business to Business payments
  • Receive payments from anywhere in the world using cryptocurrencies

Holders with an account on Cash will access these and other services through their mobile devices. This will make transactions and payments while travelling easier as the holder can access their digital wallet remotely from anywhere in the world. It will also save consumers on charges such as currency exchange fees and other transactional costs that accrue during the exchange of one currency to the other.

Cash will be Africa’s first online bank enabling mobile payment service and allowing users to locally transfer money to one another in Naira by simply using a mobile phone app. This app will also aid in the processing of bulk online payments between merchants and businesses.

The users will be in a position to send and receive fiat money using this app while in Nigeria. They will also have the ability to buy cryptocurrency with their fiat money and also use cryptocurrency to buy fiat money.

Cash will be making it easy and fast to open an account as it will take just minutes compared to opening a bank account. The App will have inbuilt budgeting to help a customer in tracking how they are spending their money. This will help them in knowing where to cut on spending and also have an overview of where they should invest more of their money. The customer will also be notified every time they make a transaction. This is to ensure that it is them with access to their account. If one is suspicious of spending, one can freeze their card in a matter of seconds.

The App will also help a customer in planning and making of regular payments. Payments such as rent, salaries and other expenditures that are recurring can be automatically set and upon maturity, they will be paid. This will help the customer focus on the most important agendas and also not be late with other payments hence avoiding penalties.

When it comes to trading, the app will provide a customer with real-life rates of the exchange market. They will be in a position to study the movement of a cryptocurrency or fiat money over a period of time. This will aid them in making the right decision on which currency is best to invest in. You can also set alerts to tell you when a certain price is attained by a currency.

Cash will allow customers to undertaking transactions online with ease. They will also be able to undertake ATM withdrawals locally and as they travel abroad. Customers are also in a position to use their cards in swiping for various services in places where they accept the use of electronic cards. This will limit the amount of money that one carries around when travelling or when purchasing certain goods and services.

The security of using the app is optimal. The user will have available options in controlling their account. They may freeze or unfreeze their accounts at their own will in a matter of seconds. This will help them mitigate any loss in case they lose their debit card or someone accesses their password. They also have an option to set the location of their card and if the card is used in a different location it blocks the transaction from going through.

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What is Bitcoin and why is it used?

Bitcoin demands have been rising in Hong Kong over the last week as protests continue. A recent video on social media showed a policeman drawing …
Bitcoin has been around for ten years (Photo by Chesnot/Getty Images)

Bitcoin demands have been rising in Hong Kong over the last week as protests continue.

A recent video on social media showed a policeman drawing his gun after being attacked with his own baton, while airports have only just reopened after being shut for a couple of days.

The reason some Hong Kong residents have turned to Bitcoin is because it is less influenced by instability in the economy and it also provides a more anonymous way to hold and exchange currency.

Here is everything that you need to know about Bitcoin and how it can be used.

What is bitcoin and why is it used?

Bitcoin is a cryptocurrency that is used internationally and is stored completely online as a computer file.

It works without a central bank and is usually exchanged from person-to-person when it is sold or exchanged, without anyone working in-between to overlook the transaction.

There are various apps to help track bitcoin value (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)

Bitcoin was first released in 2009 and its value has fluctuated over the last ten years, reaching its peak in December 2017.

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The cryptocurrency can be used to buy products and services, in in 2018 a company in Northern Ireland started to accept Bitcoin as a way of payment to buy a house.

People can track their ownership of Bitcoin by using a cryptocurrency wallet, which is a digital way to exchange payments.

It is easy to track Bitcoin as details are stored in a ledger called blockchain, which is publicly accessible and it includes all confirmed transactions.

The value of Bitcoin fluctuates all the time in a similar way to more conventional currencies.

MORE: Donald Trump is ‘not a fan’ of cryptocurrencies like Bitcoin and Facebook’s Libra

MORE: MPs considering whether to investigate Facebook’s cryptocurrency

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