Why does nobody want a state-run cryptocurrency?

Data & Research / 25.08.2020

The cryptocurrency has become extremely popular all over the world. The cryptos have been introduced to the whole world in the past decade, though they have become prevalent throughout the past several years. The tendency of the increasing market capital value of the cryptocurrency is also increasing.

The cryptocurrency’s main benefit is that it is decentralized, meaning that there are no financial or governmental authorities in charge or control the currency’s flow. This means that the transactions and the savings are all safe and remain anonymous to everyone. This is one of the reasons why cryptos became very popular very soon.

The decentralized currency is perhaps one of the best solutions and one of the best means of respect for the freedom of choice and freedom of transactions. The cryptos are used in almost every industry already, and more and more people invest in crypto with time passing.

Cryptos, especially Bitcoin, is one of the most popular targets for investors. Many people in business started investing in Bitcoin, especially after the pandemic and the huge impact on the economy and general economic state. The investment is increasing, and Federal Reserves are encouraging more people to invest in the cryptos.

Cryptocurrency is popular individually, but many countries want to create their own cryptocurrencies or, to be more precise, digital currencies. Canada is one of the clearest examples, with already having the template and everything ready for producing the Canadian Dollar’s digital currency. This might be a new revolution of digitalization.

Besides the fact that many countries are switching to digital currencies, some also want to fully switch to the blockchain system. Blockchain is the main reason why cryptos have become very popular, and the main reason why cryptos are so safe and anonymous. The blockchain system provides the transaction’s anonymity and is one of the world’s safest assets and platforms. This means that the safest place to keep your savings and your money is in the electronic wallet. There is the lowest chance that something happens to the money asset.

Although transactions are traceable to a certain extent and no one really knows where you decide to transfer your own money. This means that you are in full charge of your own money. There are no taxes and fees, and you can cash out the money any time you want.

Now, can you think of why anyone would want to have state-controlled currency instead of the freedom of choice and the privacy in the transactions and the safety and security of the funds?

Crypto industries

With the crypto market development, more and more industries decided to look into cryptos and blockchain systems. This makes every industry and every transaction easier and more appealing to customers. Some of the major industries have introduced their blockchain solutions to the customers.

One of the biggest industries that have already introduced and supported the crypto market, especially Bitcoin is the gambling industry; many online casinos support crypto payments, making the target audience even bigger and enabling more people to make transactions the online casinos. This makes their transactions anonymous, but no one controls the transactions, and customers can pay and invest in online gambling as much as they want.

Besides supporting crypto payments, some online casinos started calling themselves the best casino for bitcoin, meaning that players can play their favorite games with bitcoins without any exchanges. The number of online casino bitcoin games is increasing drastically and is expected to increase even more in the future. Some online casinos have also integrated the blockchain platform to their online casinos, meaning that the gameplay can never be as safe and as comfortable as the blockchain-based online casino.

The gambling industry prefers to keep with the decentralized cryptocurrency market, but every single industry requires a lot of transactions. Moreover, people do not want to be controlled and want to spend money the way they want. At the same time, state-run cryptocurrency is not any of the above mentioned.

Why not?

The state-run cryptocurrency does not change the concept of money or the credit card. The only change is the cryptocurrency, and instead of the paper money or the money on the card, people will have digital currency. Nothing else changes, as the state-run cryptocurrency will be centralized and controlled by the government. The transactions will not be anonymous and can be tracked. This is not something cryptocurrencies, and the blockchain system offers its customers. The decentralized system is the free and uncontrolled world, while the state-run cryptocurrency changes the visual-only but leaves the context the same.

The process of digitization is indeed irreversible, and one day or another, everything and every single industry shall switch to digital currencies. The same had happened with credit cards when they were first introduced. The banks then adopted credit cards, and people all over the world started using credit cards more than cash. The crypto craze has begun, and states found it beneficial to adopt the same system, though to control all of the transactions.

While the decentralized system is very beneficial overall, black market transactions have also become viral and increasing numbers. This is because of the crypto transactions, and the governments are not able to track the transactions. This is why the governmental officials came up with the idea to track the transactions. One of the best ways is to create a state-run cryptocurrency, which will be just the same as the ordinary cryptocurrency, yet it will be trackable and controlled. This could have been the perfect solution for the black market transactions, though no regulations can be set on the Bitcoin transactions.

Regulations can not be set as the cryptos are decentralized, and as far as no one can control them, there is no need for the regulations. Once the stet-run cryptos appear in the market, the new regulations will also be introduced, and we will have even more laws and frames controlling us than we have now. But who knows how the situation continues and how the crypto is distributed. Perhaps we will witness another crypto revolution.

Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.