I shared an article about Cryptocurrency, decades from now where I talked about the reluctance to money transformation. I referred to past instances as money evolved to the present form of money we have now.
Cryptocurrency, being a currency needing some level of internet literacy to use, I believe years from now the use of cryptocurrency will be a lot easier than it is today and it is unlikely we have a dominant cryptocurrency, instead it is most likely we have multiple cryptocurrencies leaving everyone to choose which best suits them.
To transition into a better form of currency, it is vital to look at its benefits over the present and the problems it solves. Kenya’s central bank governor Patrick Njoroge believes cryptocurrency solves no problem, a statement with which I disagree.
In our economy, what problem are they resolving? Are they better vehicles for let’s say, payments, you know, transactions, and the answer is no. Are they better in terms of whatever the problems? Is its security more than your bank account, and the answer is no. We see it as sort of something that maybe is being hyped, but we do need to look at it carefully and figure out whether it will resolve a particular problem or not
Source
Cryptocurrency for transactions
Again if we look back, was trade by barter a better form of the transaction? The answer is no which is why we are here today with fiat currency, there was the need to evolve.
Let's say I want to send $1000 to a friend in Brazil, I believe we all know the process involved is accompanied by delays and ridiculous bank charges.
Perhaps oblivious to Patrick Njoroge Cryptocurrency solves the problem of delays with very minimal transaction fees, or zero transaction fees when transacting with Hive, and of course, I don't have to explain why am sending $1000 to my friend in Brazil.
How secure are cryptocurrencies?
Before going to national TV to affirm cryptocurrency is not secure Patrick Njoroge fails to understand cryptocurrency offers more security than what the bank offers.
Security over my money is when no one can have access or control my money unless in the case of my private keys gets hacked.
Being a foreign national in South Africa when your work permit expires and in the process of renewing your permit, the bank closes your account, and all funds in your bank account are gone. This I have gone through in South Africa.
Government to Use £150m from Dormant Accounts for Coronavirus Response, was the action took by the UK government during the pandemic because those accounts were dormant. How does this action explain one's money in the bank is secured? You might have to consider keeping your bank account active before governments or banks go on spending spree with your funds.
A case could be made against cryptocurrency's ease of use, and volatility but it shouldn't be seen as a reason to conclude it is a failure as a means of transactions. What can we do to curb the volatile nature of cryptocurrency? should be our focus. Is there where stablecoins comes in to mitigate volatility are things to look at to get the best out of cryptocurrency?
At present cryptocurrency is far from a better form of money we need for transactions but it doesn't imply it is not going to get better in years to come.
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