At present, some governments have promoted the creation of its equivalent to their currency, but in digital. Many believe that it is to make people use them more than cryptocurrencies, but in reality, it is something much more complex.
The pandemic had a strong blow to the economy of great powers, causing them to have a very strong slowdown in their economies; not to mention that their economies had already been dragging problems, which increased with the pandemic.
Cryptocurrencies have been a means of escape from two very important factors that have occurred in the last 10 years.
The first was to be able to carry out transactions with users from other countries without restrictions, whether they were political or because the central banks of the countries had certain restrictions to carry them out. With Bitcoin, this is no longer a problem today.
The second is the strong devaluation suffered by the currencies of the countries and the speed with which our purchasing power is increasingly limited.
Now with cryptocurrencies you have control of your money, it does not devalue, but over time it acquires more value, in the case of Bitcoin and you can use it without any restrictions.
Many governments seeing this are betting on creating their digital currency to make people use it more than cryptocurrencies. The question we must ask ourselves is why?
One of the main reasons is because this way they have, more control of your assets, they are not decentralized like cryptocurrencies and it is easier when they collect taxes.
Another thing they do is a constant attack on Bitcoin, saying that it is very volatile and that it is a risk to use it as a store of value, but they are wrong. All they want is for people to lose trust in Bitcoin.
Large companies have acquired huge amounts of Bitcoin. Why do they do it? What do they know that we don't? Is it that a great recession is coming and they do not want to see their capital and interests affected?
I am going to mention only two examples of countries that have already created and will begin to use their digital currencies, which are China and Japan.
In China, a few days ago in the city of Chengdu began the distribution of 40 million coins among 200,000 thousand citizens in a draw. This in order to see how people begin to use the Digital Yuan. Shanghai was also selected for this experiment, but here the people chosen did not have smartphones, but instead gave them a card so they could make their purchases.
In Japan, they created a stable coin anchored to their currency, which is based on the Blockchain of the Ethereum network. The name of the asset is GYEN, it is backed 100% by the fiat currencies the YEN and the Dollar.
The GYEN's parity is 1: 1 with the Japanese Yen.
It is very important to remember that the price of Bitcoin depends a lot on the trust that users place in it, this causes its value to increase over time, but the money that governments create should be backed with Gold, but unfortunately, it is not. The question I ask is this: Do governments want to make people put more trust in their digital currency than in Bitcoin? Can governments make this happen?
I await your response in the comments.
If you liked this information please give me a LIKE and Subscribe to the BLOG.
