The Societal Implications of a Cashless Cryptocurrency Economy
What will the world be like when cryptocurrencies rules the global economy, how will it feel if the economy is run by cryptocurrencies. Is there any implications as to having a cashless cryptocurrencies economy, a world were cryptocurrencies has been adopted as the only means of exchange and the whole economy depends on it, what implications will this have on the society in general.
One thing is for certain a cashless cryptocurrencies economy will have bad reparations on the society as well as a good side depending on how we look at it, true this will help make it much easier for funds to be accessed by members of the society who were left out before by the traditional financial system, this is one good side of it.
Then again having a cashless cryptocurrencies economy could have bad reparations on the economy as this could create concerns for those who want their transactions to be annoymous, we know thee blockchain is very transparent hence anything done on the chain is actually exposed to everyone hence not everyone will like for their transactions to be monitored by almost everyone who wishes to and hence this kind of economy could temper the privacy of users transactions details and in some levels it could have unforseen effect on the society like creation or loss of jobs this remains to be seen and regulations may also become a concern.
I will break down some of the bad sides of cashless cryptocurrencies economy and the good side of it on the economy and depending on this it will be logical for one to make a sound judgement if it will be worth it or ways it could be better managed if we were ever to adopt a completely cashless cryptocurrencies economy so as to reduce or manage the bad sides to better maximize it good sides
Well one positive effect of a cashless cryptocurrency economy is that it will help bridge the gap between the rich and poor as we will grant everyone access to the financial economy, the part of the population that has been left out will be opportuned to participate in the economy of the country as it will open window of opportunity for the unbanked population helping them to be able to fully participate in the economy which means equal opportunity for all.
If cryptocurrencies were to be adopted and used as the standard economy of the world one positive impact it will have on the society is that it will help reduce the fees we have had to sacrifice for transactions in the tradtional financial systems today like the bank who always charges for transactions or things like vat amongst other notable charges, with a cashless cryptocurrencies economy this will be completely eliminated and we will be able to make transactions with very minimal or no fees as compared to what is common in the tradtional setting.
This also create an opportunity for making transactions to be done on a global stage, today with the various currencies of different countries this means if we were to travel to another country in other to make payments we will have to change our notes to the accepted currencies of the place but in an event cryptocurrencies were to be adopted globally as the economic system of the world there wouldn't be a need for converting from one currency to another as cryptocurrencies is the same and do not change with location and this will no doubt impact the society positively as trades especially international trades will operate more seamlessly without much hitches.
Least I forget cryptocurrencies function or operate on blockchain technogy, a technogy whose security is without compare and that operates in a very transparent manner which means that the issues will have when tradtional banks are hacked by malicious people won't be experienced here, a cashless cryptocurrencies economy will ensure for the maximum security of users funds and also help to present their transactions details in a very transparent manner, this will indeed ensure people trust and believe in the integrity of this system something people don't have for the present tradtional investment system who are often subjected to hackers and known for its often hideous nature.
In our traditional banking system transactions are often been delayed sometimes for days or even weeks and this maybe life altering transactions that ought to reach it's intend destinations asap but will be hanging due to one issue or the other. A cashless cryptocurrencies economy will ensure transactions are done efficiently and delivered in mere seconds and this all goes to show that a cashless cryptocurrencies economy will have positive implications on the economy.
Not withstanding there are some drawbacks to this, let's explore them
Cryptocurrencies naturally could foster the perfect ground for dubious people who makes money through illegal means to launder their money without being traced by using the annoymity the blockchain provides as cover and another thing is that when we send a coin from one wallet to another that's a process that could never be reversed, today sometimes when someone mistakenly sends money to an account or when a fraudster hijack money and the centralised authority becomes aware of this they could reverse this money or even block the account and trace the account to the person but this can't be done in cryptocurrencies transactions, the process is in-reversible and we can't track down someone with their wallet address so this becomes an issue and some of the bad sides or implications of a cashless cryptocurrencies economy in the society.
Cryptocurrencies economy would mean a very speculative and highly unstable economy and the reparations on the society would be too great I mean if we look at the economy of most countries and their countries despite the deprecation in some none is as volatile as cryptocurrencies. A crypto asset maybe $4 now around 12:45pm and then two hours later around 2:45pm be $1.45 and then possibly around $6pm be $20 and could still go down to $0.80 so this kind of instability will be while it will be unsafe to be used as a global economy unless this is treated with urgency.
This could also impact the economy negatively due to its inconsistent regulation rules as it varies from country to country and could also impact and even create uncertainty among the population even instilling fear in them which will be bad for the economy.
In all I believe considering the implications and all both the positive and negative impact the world in general may not be ready for this as it will cause an upheaval in the society and many will find it difficult to immediately adjust and besides before cryptocurrencies could do this then alot of things needs to be worked on but I believe with how the world is driving towards technogy then a cashless cryptocurrencies economy is one that anyone would be foolish to rule out, it could become a reality that's for sure.
https://twitter.com/frank_anayo/status/1733625422451970403?t=AXpSpJnAqy-MM0Jq4PetKQ&s=19
The fact that a cashless crypto economy would give everyone access to the financial economy is a huge positive. Thanks for sharing this informative article.
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It sounds good to have a cashless economy that is driven more by the cryptocurrency but I think having it in the real world is not so easy. I do understand that the world is adopting cryptocurrency but still there are countries that are not in favour of it or they are following the neutral approach however in next few years things are going to be in the better state. I hope it happens soon and it is inevitable that things will be getting better in the coming years which will lead for cashless economy on a partial scenario.
Thanks for your kind comment
A well written post friend, I really think we will all benefit if the world adopted cryptocurrency as it's standard economy if not anything at least to reduce the charges we have to sacrifice during the the normal transactions.
I share your sentiment friend, thanks for sharing this kind comment