Will cryptocurrencies one day rival the demand for sovereign central bank fiat currencies?

Colleagues, recent remarks by the International Monetary Fund (IMF) raise the specter of cryptocurrencies one day challenging the credibility of sovereign bank fiat currencies. Such prescient statements paint a picture of a brave new world with a dualistic global economy. One component of the global economy will surely continue to be central bank fiat currencies backed in some cases by little more than the stability and reputation of the sovereign governments from which they are issues (e.g. the US dollar which until 1971 was pegged to the value of gold bullion). The purchasing power of fiat currency is pegged to the state’s authority and any damage to that authority leads to a decrease of fiat money’s value and results in inflation. By contrast a global crypto-based economy could emerge with specific currencies backed either by tangible commodities (e.g. gold, silver or crude oil) or even the stability and reputation of the organization that issues the currency (e.g. a cartel such as OPEC, let alone a short list of the world’s most valuable corporations such as Apple, Google or Aramco). We at the Cryptocurrency Academy fully recognize that this scenario looks far into the future and has many – valid or invalid – dependencies. Bottom line: What is the probability of such a dual-currency global economy coming to the fore by 2028? Share your thoughts and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)