The rapid growth of cryptocurrency market over the years has seen an increase of entities accepting virtual currency as a form of payment; central banks are not comfortable with this, they lack control over cryptocurrencies and will be seeking ways to tame the growth of cryptocurrencies going forward.
Recently, in a TV show pitting a comedian host and an economist, the comedian wittingly asks the economist a question “will bitcoin ever replace traditional currencies to be the main force behind all trades,” the economist taking his time, replies and says that “there is a great possibility.”
Globally, some people believe that the government should let people freely do their things; they think that the governments should trim their influence a bit, and allow free movement of people, and trade all over the world. In a monthly forum, in Manhattan, the debate touched on this subject and periodically the topic of bitcoin and central banks came up.
Central banks lack the autonomy to control prices of digital currencies, as they do with national currencies. However, in that libertarian’s forum, people agreed with the facts and wanted the roles of central banks trimmed. Moreover, if not so, Bitcoin and other virtual currencies should come up and replace national currencies to deny central banks the position of control.
If this is the case, the crowd in the forum argues that Bitcoin will take powers from any entity that traditionally held moneymaking decisions such as governments and central banks.
How will Governments Respond?
However, governments will not sit back and watch this unfold; they will fight it with all the resources available, as witnessed in China recently. The government directed its might at the digital industry and banned anything to do with cryptocurrency trading; unfortunately, this gave birth to “other ways” unrecognized by the state in which people still trade without fail in China.
Governments to protect their role as currency creators and controllers must find a way to regulate the digital currency market and at the same time doing enough to protect their national currencies from a full-blown apocalypse from cryptocurrencies. If the governments chose to take a hard stance on crypto then they will start a rebellion that will be very difficult to defeat, people will start adopting crypto in large numbers and doing their trades in the secrecy of the deep web.
However, the economist in the show argues that bitcoin will not be able to hold up, and national currencies will always take the day. As of now, many stores do not accept bitcoin, let alone the time the governments will ban it if they detect a threat. Therefore, the desires of the libertarians will remain to be a dream, but hey, anything can happen.