Cryptocurrencies,
which have been around for a little over a decade now, are changing the
landscape of transactions, and in turn, value. Simply speaking, a
cryptocurrency is an encrypted and decentralized digital currency. Created
after the economic crisis of 2008 as an alternative method for financial
transactions, Cryptocurrencies are mostly based on blockchain technology which
is a permanent and unalterable decentralized digital ledger system.
Bitcoin
was the very first cryptocurrency but since its unveiling in 2009, there have
been thousands of alternative cryptos or ‘altcoins’ following the lead of
Bitcoin in the crypto space. All digital coins have various properties and
offer different opportunities. Termed as the market of the future, the
cryptocurrency market is estimated to be worth $1 Trillion in 2021 and the
number has only increased ever since. In plain and simple words, cryptocurrency
is the currency of the people.
The
governments and authorities around the world which were previously against the
notion of cryptocurrency, are now recognizing the true powers of cryptocurrency
and looking forward to issuing their own cryptocurrencies. Experts have
suggested that in the next few years, the world will witness a rise in the
emergence of national cryptocurrencies. The previous decade was concerned with
the adoption and the regulation of cryptocurrency but the trends say that the
coming decade is predicting National cryptocurrencies.
Some
countries have already jumped on this bandwagon of national cryptocurrencies.
Venezuela, for example, was the first country to issue a national
cryptocurrency. The country released Petro Crypto in February of 2018 which was
issued to control the impact of US sanctions on the country. Petro
Cryptocurrency was also devised to enhance international funding and support
the free-falling Venezuelan Bolivar currency. The Petro was designed with the
backing of abundant natural resources available in Venezuela such as Oil, Gas, Diamonds
and Gold. This Cryptocurrency received national backing after the President
announced a dedicated youth bank which will be funded entirely with the
national cryptocurrency in May of 2018.
Iran
was also one of the first countries to issue their cryptocurrency. It is
uncanny that Iran faces similar US sanctions as Venezuela which is highly
damaging to its resource-dependent economy. The Central bank of Iran was
finalizing the plan of their national cryptocurrency in late 2018.
One
of the major economies that are planning to launch its national cryptocurrency
is China and the country has started digging into dedicated blockchain research
for the same. With China taking the lead, other major economies too will be
looking forward to creating their cryptocurrencies. Countries such as Japan,
Sweden, Russia, Israel, Tunisia, Senegal and Estonia are already in advanced
stages of issuing their national currencies.
Other
countries are sure to follow in the footsteps of these countries and issue
their national cryptocurrencies. When countries start issuing national
cryptocurrencies, they will provide a much safer way into the world of
cryptocurrencies. The cryptocurrencies will be more regulated, authorized,
become legal (as in some countries cryptos are still illegal) and become more
accessible for all. It is possible that in the coming future every household
will be using cryptocurrencies in some way or another.
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