In 2022, you cannot say you haven’t heard of cryptocurrencies yet. Bitcoin and co. have held the main headlines for at least half a decade. Furthermore, they are increasingly popular, and merchants worldwide accept crypto as payment. So, is there a future for our current fiat money?
This article discusses the potential future of money as we have known it for thousands of years. Modern technology enables several methods, including Paxum, to make digital payments using your mobile device. These fast and secure ways of paying for stuff make cash payments obsolete. Let’s see if that will be the case in the next decade!
The Rise of Cryptocurrencies
Since their appearance in 2009, cryptocurrencies have become a rival to traditional currencies, such as the US Dollar, the Euro, or the Japanese Yen. At first, everyone was betting on Bitcoin to topple fiat currencies and become a global means of exchange. That forecast has not become a reality yet. However, it wasn’t due to Bitcoin’s shortcomings but to the emergence of new and equally promising digital assets.
For example, one of Bitcoin’s most fierce rivals, Ethereum, has developed into a blockchain platform nurturing the creation of new and versatile cryptocurrencies. Numerous developers have created digital assets on Ethereum, reaching market capitalizations close to $1 billion.
As we place an even firmer foot in the 2020s, cryptocurrencies represent a viable means of generating wealth. Now, a new invention is set to incorporate them and open the doors to mainstream adoption. We are, of course, talking about the Metaverse, the limitless virtual world of the future promising a new technological era.
What Would Happen If Crypto Replaces Fiat?
Cryptocurrencies in their current form cannot be the subject of present-day regulations. They do not abide by international borders, local laws, monopoly, or real-world sanctions. Furthermore, they represent complete decentralization, which is free from government control or the interference of any authority.
This particular aspect was evident in the recent conflict between Russia and Ukraine. When central banks restricted money transfers to Ukraine, the people there managed to attract funds through cryptocurrencies. This way, Russia could not impose a financial blockade on the Eastern European country.
What Does the Future of Money Look Like?
In the early 2000s, it was impossible to predict Bitcoin and all the other cryptocurrencies that came after it. Similarly, it is nearly impossible to tell if digital assets will replace fiat money in the future. We can only say that online payment, whether in fiat or crypto, is increasingly popular and will most likely become the standard way of paying for stuff in the future.
Already, several countries are looking into minimizing the use of cash. Having all transactions online helps reduce fraud, money laundering, and other financial crimes. Blockchain technology and cryptocurrencies can help secure online transactions, improve their speed, and regulate their use.
It will depend on each country and its people whether they will fully embrace cryptocurrencies or still use traditional money. Most likely, they will compromise to use both in a continuous spiral towards finding the ideal means of exchange.