The Russian CryptoRuble and the future of currency wars
With the story of Russia deciding to issue it's own cryptocurrency making the headlines, it got me thinking about how this might change the global political and economic landscape if we project this trend out into the future.
As far as we know this will not be a "true" cryptocurrency, it's supply will not be capped, and users will not be able to mine it. In this sense it will be more like a fiat currency in crypto clothing, but just the fact that a major world power has taken this step should be pause for thought.
The immediate question this raises is whether it's now inevitable for some country in the world to issue a "true" cryptocurrency to try to stimulate it's economy, to find a way around sanctions, or to try and break away and eventually escape the US dollar paradigm.
Raising money has always been the biggest challenge of any movement. Up to now, the only place to go was to the international money lenders. Cryptocurrencies provide a very realistic way of raising money through crowdfunding, as well as a means of exchanging the value it represents across borders that is impossible to restrict and stop.
If this can be used to fund a business and provide it with liquidity, then why not political movements too? Could these be the coups of the future?
I can imagine a scenario where elements within a government serious about challenging the US dollar system could even set up a kind of national resistance, and support the widespread adoption of a cryptocurrency infrastructure that would be impossible for a hostile power to stop, in the same way that nobody can take away all the weapons in a country whose citizens are armed.
At the same time we could see elements within a country gain sufficient financial power through either investing in, or creating their own cryptocurrency that they could present a serious threat to established governments.
This could well be a destabilising force, as we can imagine oligarchs rising up through control of cryptocurrencies tied to their economic interests and the businesses and property they own. This seems ever more likely as the blockchain eventually replaces publicly traded shares as the main means of storing and measuring the value of businesses.
I believe the disruption to traditional systems that cryptocurrencies will cause will be comparable to the steam engine, the discovery of oil, or the invention of the computer. We will see every aspect of life put onto the blockchain, and the fight now is to make sure that it stays decentralised through the chaos that is definitely coming.
I have a feeling it will. This is an idea whose time has come, and there will be no stopping it.
Im thinking most large countries will have a blockchain based e-currency of their own soon enough.
This is what the article says Russia seems to think too, so they're making the first move. It will be fascinating to see how it plays out.
I can't see how this couldn't bring huge disruption though. I'm convinced the entire stock market and financial system will move onto the blockchain, and that's the engine of wealth. As that's freed from the hands of manipulation by the big banks, it will spread the power out a lot and conflict will be the result.
Personally I still can't see any other eventual outcome than total decentralisation. In such a system it seems that is the equilibrium state, as all opposing forces cancel each other out.
Not sure if this helps our USA 'petrodollar' ..in fact no it doesn't! Cheers @adamantine!
I'm eager to see how the whole world reacts to the new blockchain technology. I believe Russia is doing a good thing by doing something with blockchain.
I think so too. It really makes sense for them to get on board. They've been suffering from sanctions by the US for a few years now, and if this opens up a channel eventually to escape that paradigm they'll be all over it.
Sadly though, I think their biggest fear of it getting out of control, and this technology liberating their people. Still it will be fascinating to watch this unfold!
Yep, government sanctioned cryptocurrencies, that's gonna the future alright!
No way govs and central banks will want to give up being the only issuer of currency.
I'm not so sure. The top dogs also have everyone below fighting to get up there. They have managed to maintain their position of power so far through the US dollar being so dominant, and through the total manipulation of financial markets. This is coming to an end.
The big shift will be when the stock market, and also commodity markets, are all put onto the blockchain and we get everything traded on decentralised exchanges. It will happen, the business incentives are too strong for it not to. And money is the bottom line at the end of the day.
This will level the playing field a lot, as the ocean of illusory liquidity the power structure controls evaporates, and businesses and the oligarchs in charge of them gain more relative clout.
I think we will see a lot of conflict as this all plays out.
I agree that most if not everything financial/stocks will prob end up on the blockchain at some point. The question is, which blockchain or what kinda blockchain? :-)
More and more countries are coming out against decentralize cryptos for the usual reasons i.e. need to control capital flight, laundering, terrorist, tax-evasion, etc. Russia, China are going down the path of national cryptos. India was looking that way for a time, other nations will surely follow in time.
For non-gov created cryptos, only the centralized cryptos that play-ball with authorities and big businesses will get the nod. At the same time, a lot of average Joes don't trust cryptos like BTC specifically because it is not backed by a big business or a government. Despite the sham behind national currencies, the majority of people still trust it and can't see how something other than a gov issued paper could be used instead.
It will take generations for everyone to unlearn what they've known to be true for all of their lives. Many will probably never accept the new paradigm until their dying day. The govs who create their own cryptos know this, and will do everything they can to make sure that their crypto will be the one to succeed. They can do it by banning other cryptos or placing severe restrictions and rules around others. At the end of the day, it's all about monitoring and control of the masses, that's what govs are about, and govs aren't going away anytime soon.
As far as I am aware India and few other countries had anounced the simmilar statements already and Putin's government is desperately trying to get on top of the things now. The thing is that in a country as corrupt as Russia they are going to find a way to make it strict to keep the power and the money in their hands. Anyway, great info.
Congratulations @adamantine! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP