Does the Coronavirus Crisis Provide an Opportunity for a New Digital Currency?
Every time there is an emergency or disaster, which affects humanity on a global scale, heads of state go back to the drawing board. We have often seen unparalleled global cooperation in medicines, health equipment, food supplies, etc. between nations during the Coronavirus pandemic.
This is not something, which is new. Historically, countries have come together to help one another during crisis-like situations. However, one area where such levels of cooperation have never been seen is the financial or economic sphere.
I am not referring to global tariffs and trade regimes. I am referring to national governments manipulating fiat currencies and fooling populations with the help of laws. They are in connivance with other central bodies like the Central Bank, the Law Enforcement Agencies, and the Taxation bodies.
Have Government Authorities Ended Financial Systems Because of Their Own Faults?
As a normal human being, who works and pays taxes, what happens when the bank, which houses your entire life’s savings, crashes? Can you hold the bank accountable? Alternatively, can you punish the country’s commerce or finance minister?
The answer is- you can do neither! This is because the government and its authorities always keep itself isolated from the concerns, issues, and problems of the common man. For a very long time, much before the Coronavirus pandemic, national economies were crashing.
Evidence in the form of Bailouts was given by the Federal Reserve to Wall Street to keep operations running. Again, the negative interest rates were fuelling a crisis of hyperinflation and increasing recession worldwide.
Could the Coronavirus lockdown be the opportunity authorities were looking for to turn the clock back? Can they use this period of time to wipe the slate clean and move towards a new form of recession and inflation resistant global financial system?
What Is the Problem with the Existing Solutions to the Financial Crisis?
Do you know about a one-stop solution employed by all national governments during times of need? It is Printing More Money!
You might think that printing more money means that there would be more for everyone to go around. You might be terribly wrong. Printing money is a stopgap arrangement, which compromises on the fundamentals of a finance system.
The more money you print, the lesser are you attaching a value to it. In other words, the more money the government prints, the more will be the prices of goods and commodities. This means that every human being’s possession of money is severely undermined.
For example, you could buy 10 apples from your monthly salary of 10 dollars. When the government starts printing money, the cyclical effects drive up the prices of commodities. However, on the other hand, the complications and manipulations in the system do not allow for your monthly salary to increase beyond 10 dollars.
In the new set up, you end up buying 6 apples for the same 10 dollars! That is how governments play with your hard-earned livelihoods.
National Digital Currency Versus Cryptocurrencies: What Is the Difference?
Governments all over the world are moving towards digital currencies as it would help them increase control and surveillance. It would also help them manipulate the financial systems by embroiling it is much more tech wizardry.
Countries like China are already experimenting with a new centralized digital currency, ‘Digital Yuan’. This is going to increase the powers of the surveillance state and increase tracking and taxing mechanisms. Governments are faultily believing that if people give up hiding taxes, their revenue problems will be solved.
Cryptocurrencies are entirely different in nature. They are decentralized and not subject to the control of governments. They are also stable trading options, which bring in transparency and real profits for investors. Platforms like allin1bitcoins have been helping people become a part of an official financial system.
Featured image: cryptopanic.it