Bitcoin Exchange Guide is a media outlet focusing on news from the blockchain and bitcoin world. As such, they were interested in finding out what Daniel Popa, the founder and CEO of Anchor, had to say about cryptocurrency replacing the fiat monetary system.
There are two main aspects of this system — comparisons of the currencies and the exchange rates. Consequently, these are the very reason some think crypto might be a better idea in the long run. By creating a global, legitimate financial standard, it would be possible to retain value; something fiat currencies are failing at right now.
Theory vs. practice
However, just because in theory, this sounds great, it doesn’t mean the idea of a global financial standard has been interpreted well. One example Popa gives is the SDR, which the IMF came up with in 1969. Exclusive and easily manipulated, the SDR isn’t the best solution. Additionally, a small number of people can benefit from it — but not individuals or businesses.
Thus, a crypto-based stablecoin could very well be the savior everyone needs, despite the recent controversy. As Popa said, economists are losing faith in the U.S. dollar. The ever-rising national debt has created an unsettling atmosphere, with more countries looking into “ghosting” the U.S. dollar and stepping away from it. Consequently, the U.S. dollar’s share dropped by 0.2% in Q4 2018.
In the end, if the U.S. dollar becomes too unreliable, it could lead to many worldwide economies losing control. Furthermore, even printing more money won’t do anything for the dollar — and it could even lead to an incredible boom on the crypto market.
To learn more about the fiat monetary system and how cryptocurrency might be a realistic alternative to it, read the entire article here.