Private money emerged a long time ago and was quite a common thing.
But despite this, a monopoly on the emission of such money was established only in the 19th century. At the time when only metal coins were used, private money posed no threat to state economy, served as banknotes and was legal. With the emergence of fiat money, which was not backed by precious metals, the emission of private money was limited. This and other factors, which negatively influence the stability of state currency, are often followed by the emergence of pyramid schemes based on private money, emission of autonomous currencies as well as replacement of values amid social unrest. Crypto currency is not regulated by the legislative authorities, and control over such a large flow of funds is almost impossible, that is why it might also be classified as private money. The Blockchain technology has fundamentally changed the idea of creating crypto currencies compared to the purpose of private money.
Why Are Politicians Reluctant to Use Blockchain?
The history knows many examples when the heads of states (especially from third world countries) deliberately fueled international conflicts, bred local wars and caused an internal financial crisis. And the reason for all these instances was a favorable ground for corruption and money laundering at the time of an unstable situation in the country. Just imagine what will happen if all financial activities are carried out in the Blockchain.
Each new transaction will be irreversibly recorded in the continuous chain of blocks containing information, and any shadow activity will be almost impossible. This can prevent embezzlement of budget funds, which does not benefit certain politicians, officials and other bureaucrats. That is why some states refuse to accept digital economy, thereby keeping the integration of Blockchain into the real sector of economy in cold storage. It means that the management system is not being developed according to human needs and capabilities, and the reason for that — people interested in exploiting the downsides of the existing economic model. Any form of crypto activity was strictly forbidden in a number of countries: Iceland, Vietnam, Indonesia, Bangladesh, Bolivia, China, Nepal, Lebanon and Ecuador.
On the other hand, there are states completely open to innovations and technological progress. For example, Ukraine, where a range of bills providing additional loyalty to the Blockchain industry by the state, is rapidly being drafted. Only recently, several dozens of promising projects based on the distributed ledger technology were registered. One of the most outstanding projects is the Bitbon System — a financial crypto project with unique services and tools, which allows its users to interact transparently: to sell, purchase, execute quick transactions, invest safely without intermediaries and high costs. But still, the platform functions completely within the current legislation, which indicates its reliability.
How Will the Blockchain Technology Develop in the Future?
Blockchain is a decentralized ledger, which is useful in any field, where it is necessary to keep records, for example, accounting, medicine, politics, science, etc. This technology is implemented into existing projects and is used to develop numerous new ones. You cannot deny that Blockchain is a revolutionary breakthrough alongside telecommunication services, mobile communication and the Internet. At some point, this technology will completely replace the outdated accounting mechanisms, thereby bringing society closer to the new digital era.