Why do we need a bank account to save, manage or spend money? We really don't need to pay service fees and fees, especially because our money - everyone's money - is fuel on a bank loan machine. But if I don't have a bank account, how do I pay my bill? We often use Doku, Ovo, Gopay or credit cards more than we use cash. Electronic money is a way to pay for something, so why can't we save it on our cellphone or manage it through our account on Doku, Ovo or Gopay in Indonesia? Deposit and payment options directly through Doku will also be fun because we spend a lot of time on that platform, so maybe something similar for Ovo and Gopay.
So where do we go from here? What is the future of crypto money? It's time to start seriously thinking about crypto money issued officially from trusted authorities. Reliable authority in a country can be the central bank. Official crypto money in a country can later be a central bank digital currency and a stable coin (commercial, digital currency issued by a bank). In the future, we will no longer hesitate to hand over our money managed and transferred in a crypto mechanism as we wish.
The fact today, the issue of official crypto money is between two possible impacts, the positive impact of making official money has the character of cryptocurrency so that it can adopt crypto money functions that are not found in conventional money, while the negative impact of official money has the potential to be very instable (volatile). So it is feared that it will become a trigger for instability in the entire financial system. With these factors, it is clear that official crypto money will need regulations. The regulation of crypto money issued by the central bank will conflict with the spirit and the original libertarian spirit that resides in crypto money in general. What is clear, the recognition of the role of the state or trusted authority such as the central bank is merely a mere enabler and not as a divider.
Although in some developing countries the existence of crypto currencies is not yet possible, a number of central banks in developed countries have gone further. They are now exploring the possibility that they themselves will issue the cypto currency. Special attention has been given to the relative benefits of blockchain technology as a way to verify transactions faster and more efficiently than at present. Central banks do not need to use a private sector approach that is environmentally responsible to incentivize many "miners" to try to simultaneously verify transactions. But this is still an open question whether this technology is as efficient as its alleged supporters.
There is no doubt that digitalization of financial transactions, records, access to information, and communication will continue to increase, and that the electronic networks that underlie activities continue to grow stronger and more ubiquitous. But the basic nature of money will not change. It is clear that having a flat currency is too valuable and profitable for the government for them to return to the government currency that is supported and converted to actual assets, whether gold coins or other assets.
The most famous crypto money today is bitcoin. So, is bitcoin our future money? It could be yes or no. We need to look at the fact that the underlying technology behind crypto money is blockchain. The Blockchain is strong and the future belongs to it. Blockchain can indeed be the next Internet. What the internet is doing to decentralize publishing is what the blockchain can do to decentralize ledgers. Blockcain can decentralize anything from contracts, to ownership, to identity management and so on. And yes, even money. However, just as the most important factor in currency evolution is efficiency, the most important factor in receiving money is trust. Crypto money is made by unknown programmers and management is complicated for the average user to fully understand to be able to believe it. On average people still trust the government and central banks (from some other countries that are politically and economically stable in some cases). In such a scenario, this authority can fill the trust gap associated with bitcoin.
Now maybe it hasn't happened yet. We have just found that crypto money is an entity that is separate from conventional money from the banking world. In the future, the central bank, with assistance from a national bank union in a country, will create crypto money. The central bank will also sign every new coin with cryptographic hashes. It is undeniable, in the future, crypto money is emissions from a trusted authority. Swapping between people must also be signed by this trusted authority before adding it to the blockchain, thereby reducing risks such as multiple currency issuance attacks. This will be very similar to the currency we have in circulation except that it will be fully digital and will be maintained in publicly distributed ledgers. New money will have all the efficiencies provided by the blockchain such as the speed of transactions in a hundredth of a second, transparency, reducing the risk of fraud and removing intermediaries in transactions. This money can also be more trusted because it will be made by a central authority (with or without a national bank union). This will also allow the central bank to control the money supply on the market. So that the money in circulation can be better controlled.
The UK's rejection of the European Union and the release of the Trump era from the WTO which revealed more than a handful of nationalist spirit were signs for us. Rejection of globalism, in a world that is getting smaller every day because of technology, is not new. In many ways, this election rejects the new status quo for a simpler time. The conclusion is that the growth of the crypto money market is one of the most significant realities that challenge two institutions, conventional money itself and the government. (SLT)