If you go back few months then you can verbalize some developments in crypto sectors have been happened. A number of initiatives have been taken over crypto sector by state actors and central banks are also paying their heed to the market for a safe and secure payment system indeed. So scholars think that adoption of digital payment throughout the world will re-shape the existing international monetary system indeed. Extension of adopting blockchain technology is increasing from state to companies. The augmentation of the space can be gauged throughout seeing central bank money token, appearance of smart contracts and tokenization of financial assets.
Those who are pioneers and entrepreneurs are messing the technology up because they are seeing the technology is going to be the mirror of economic system and information and technology in near future. Now users can issue cryptocurrencies instead of fiat currencies and other assets like what ethereum is doing. The system can be compared to the base layer of TCP/IP and HTTP. Competition can be created for following approaches:
Crypto native ecosystem players are creating fiat-backed stablecoins for example USD coin on top of public blockchains. This will encourage industrialists higher level financial constructs for example decentralized lending and credit markets, payment services and tools for trade finance.
This approach has been introduced by China’s upcoming Digital Currency Electronic Payment (DCEP) to build an entirely controlled, centralized and permissioned infrastructure for a digital a digital currency version of the Chinese RMB. But enthusiasts are not likely to pick the concept up indeed.
The third approach has been brought about by Libra Association. They want to build an ‘’over-the-top’’ synthetic global digital currency but the concept is also similar to that one of China.
Rival Viewpoints worldwide
But there are questions regarding the global financial system built in the image of the internet public blockchain infrastructure, enabling commerce and transaction agreements between people everywhere. Other than that if you see the Chinese approach that refers extremely rigid controls, impedes easy access to the system than it is really sturdy concept to adopt. But the approach can be congenial to only China but globally it’s very tough to think indeed. The conception of Libra confers a new global financial system to the largest private companies. They want to create a new global currency that stands above the state. But I think maximum scholars and analysts won’t accept the idea. It is thought that those concepts brought about will have a dramatic impact on future global economic system.