Cryptocurrency and Governments

Many have predicted anticipated governments developing their own currency blockchains. Venezuela seems to be the first jumping into this game.

My prediction is eventually the BIS will create a form of Ethereum/NXT/BITSHARES and allow all countries to create their domestic currency as an asset on that Blockchain (kinda like ICO tokens on Ethereum).

Having them all on one Blockchain offers several benefits I doubt governments will ignore.

– Easier to track payments for AML purposes with one shared Blockchain.

– Each central bank can act as a masternode for processing each other’s transactions

– Easier for tax collection

– having the BIS be the center would make it easier for international payments.

Is this a good thing? Not really, but it’s the likely outcome of government application of the tech.

Fortunately they would have no choice but to compete with existing private blockchains as they are now since they are decentralized and near impossible to eradicate unilaterally so people can diversify their monetary mediums which will still put pressure on governments to be more accountable.

Also BIS having visibility of international transactions may make it harder for governments to start wars with each other on some level.

Although I can think of several nations who would opt out of such a regime although the benefits to international trade and their economies may force them to be more transparent and join in.

An interesting thought.

alexmerced@alexmerced.com

%d bloggers like this: