Whether blockchain technology does, in fact, become a part of everyday life remains to be seen. While inflated expectations raised the possibility of an end to central banks and their responsibilities as we know it today, an end to the centralized financial system is perhaps a step too far for now.
The current system which the banking systems and the global economy function on a daily basis are still founded in our social life. Removing the oversight responsibility of central banks and handing it over to the general public is an unthinkable step, but this doesn’t mean that certain qualities of blockchain technology and the ethos of decentralization cannot be adopted.
The realms of possibilities are endless and alongside corporations and the banking system, central banks are now exploring the possibilities and how blockchain technology can be incorporated into the financial system. The fact that central banks are exploring the technology suggests that there is an open mind to embrace blockchain technology.
After all, central banks are in place to decentralize from their respective governments. So this would just be an evolution of the independence that central banks are supposed to be working on today. One possibility is to create a peer-to-peer network comprised of the greatest economic minds of today and tomorrow. This would free central banks from possible pressures from respective governments, eliminate the currency war phenomenon seen since the global financial crisis and bring an end to accusations of certain economies enjoying more favorable trade terms. And let’s not forget the “free will” printing of money that has put a Band-Aid on the debt woes of governments around the world.
Time will tell how blockchain evolves, but one thing looks to be certain today. Status quo is no longer an option and change is needed.
