Cryptocurrency these days is picking up a lot of steam when it comes to worldwide adoption. From large companies to political rallies, almost every big player in the finance and business market is adopting it.
We hear of Microsoft, Tesla and Starbucks to list a few allowing for some level of crypto payment or transactions.
Donald Trump in his campaign towards the presidential seat this year has opened his arms wide to Cryptocurrency and has accepted over 3 million dollars worth of Crypto donations from his rally. We're nearing a true worldwide adoption and although some investors in the crypto community have become pretty bullish about 2025 I like to look at it from the technological stand point.
Cryptocurrency's volatility can make for a good and bad investment but one thing it will always be good for is its utility which is what I look for in crypto. From its security to transparency to its decentralized nature. All the advantages that traditional currencies do not possess.
Donald Trump seeks to make cryptocurrency great in the United States and apparently the Central Bank of America is trying to have their own digital currency when they got fully aware of its potential, they seek to centralize and take control of crypto before it gets more adoption in the world.
The BRICS nations are in the process of finishing their own currency, which they seek to use in replacing the US Dollar when it comes to international trade among them as well as be suitable for ordinary people among the member countries. We are aware that the money would work on blockchain technology. So while Donald Trump wants America to dominate cryptocurrencies worldwide, even rival nations are embracing cryptocurrency.
All this adoption begs the question which I would like to address in today's blog.
Every nation has its own unique traditional currency used in the country and can be recognized in world markets and traded with. Well since about 19 European Countries share the same currency EURO, I would say most rather than every country have their own traditional currency.
With the rise of crypto, will we see a time where each country starts to create their own cryptocurrency which represents them, can be used in the nation to purchase goods, goods, pay for services and exchanged for other currencies whether crypto or traditional?
On Hive, we already see a great use case for the HBD stable token of the Blockchain. People in Sucre State, Venezuela are able to go to certain stores, purchase items and pay using HBD.
This could easily be the case for nations. I would call it National Digital Currencies or NDCs for short. When they ask, say @theringmaster coined this term.
I would assume that each nation will have the NDCs backed by its own traditional currencies which means it would be stable in a sense since traditional currencies are much more stable as compared to unbacked crypto.
For a little fun game, you can share in the comments what you think your country will name its NDCs if they created it.
Well there are good sides and down sides to any innovation. First and foremost, because of the utility benefits of transacting in crypto, perhaps more people in the country would prefer the use of crypto to the use of FIAT making it less valuable I think. However since the NDCs will be used more often, I believe that would make it stronger.
Typical example of how the NDCs would look like is the USDC (USD coin) which is a stable coin backed by both the US Dollar and the US Treasury instruments. Also we see USDT backed by the dollar. Well USDT in particular is not owned by the American government but a company called Tether which is also owned by another company called iFinex, a Hong Kong registered organization.
The NDCs would include blockchain technologies that facilitate safe transactions and transparency thus offering people and businesses with secure stores of value.
I really think that global trade will not remain the same if NDCs are adopted.
Traditional banking intermediaries can finally be avoided and currency exchange risks reduced through faster, less expensive cross-border operations.
So that means less waiting times at the banks since transactions no matter how much money is involved is just a few clicks away. Also if you seek to transfer money to people in other countries, it would be cheaper and faster and is also going to be as fast as paying for groceries with crypto.
I strongly believe that economic cooperation would improve and worldwide trade would foster if settlements between nations could take place in seconds.
Emerging markets of BRICS (Brazil, Russia, India, China, and South Africa) possibly may lead the revolution of NDCs. These economies are known to be big so they can pave the way for other countries in adjusting their economies with using NDCs.
The reason why I make this claim is because of the new currency they seek to bring out. Since it's going to be Blockchain based, other nations outside of BRICS might respond with their own crypto currency and then we would finally see a world where each nation has its own currency.
Although crypto adoption is spreading faster than a bush fire these days and NDCs seem like something that can happen next year, it's not going to happen that easily. There's a few hurdles nations would have to overcome.
One of the challenges involve regulatory changes that should be put in place by governments if they want to handle cryptocurrency while maintaining economic security and financial stability.
The technology of blockchain is still in the early stages and has some issues with privacy, scalability and cyber security concerns.
That's why stronger mechanisms are required to protect users’ data from unauthorized access.
Nevertheless I believe the future regardless of whether we see nations with their own crypto or not will be dominated by Blockchain technology because of its utility and advantages.
I personally do not foresee a world where we completely do away with traditional cash but rather a beautiful blend of both crypto and cash.
I remain TheRingMaster and Let's Together Make Web 3.0 great ✊
