After China officially joined.. How is digital currency reshaping the global financial system?
That is how the star 'StartUp' Ezzie Morales made his first announcement during his announcement to convince the commercial company to support his project 'Gencoin' in digital currency, and continued, 'Money destroys people, but what no one admits is that people are the ones who destroy the money of Gencoin. can stop it. Gencoin is a digital currency that is "better than Bitcoin", according to Eazy, and offers a higher level of stability, security and privacy than any other digital currency. He is not talking here about payment methods like "Paypal" or "American express", but about independent money. But what motivates us to create money for e-commerce, is it not going to lead to the destruction of banks and the traditional banking system and the migration of workers to the economy?
This question is the first thing that comes to mind when talking about digitization in all areas: will we be replaced? Will we lose our jobs? And make sure that it is more than a substitute for work.
The Chinese used seashells as money 3,000 years ago, and since then people have been looking for a form of money that is easy to transport, easy to divide (quarter pound, half pound, etc.), not easy to lose, and available. easy available. Over time, money has become more abstract and symbolic. Tangible assets such as gold have now been issued in digital form (cheques) and computerized numbers.
Everything is digitized now, the use of traditional money is almost non-existent in some countries. Customers use payment tools such as "WeChat Pay" in China, or Vodafone digital wallet in Egypt, or "Paypal" famous in the world, and many companies and payment systems manage the house secret services like "Paypal" and "Zelle". \", in Kenya \"M-pesa\" used by Vodafone (1) in many countries, these are all private companies, which made the government think of creating digital money; Fear of the digital economy will not be left out.private sector only.
Common currency is coins and paper, you might think, but what interests us is the unusual meaning; Money is money that the government owes you. In the past, this was a real state debt, and this debt system is still present in the currency of some countries such as Britain.
In our current era, the legal confirmation of your rights has become a formal guarantee that guarantees the holder of the money the right to use it in business and sales. On the other hand, your bank account number shows what the bank owes you. When you go to an ATM, insert your credit card and withdraw money, you are converting bank debt into public debt, that is, money. Some people trust the government and its promises more, the bet here is always that the government will not be able to go bankrupt - this belief is true in many countries - the banks are not.
Gabriel Sodberg, an economist at the Central Bank of Sweden, said that for this reason, his country could be in trouble if it decides to adopt the electronic currency. The main fear here is that if such a complete change takes place in the Swedish financial system, people may lose faith in the financial system as a whole. The thing is that everyone in Sweden uses the tool called "Swish" for buying and selling, and because the tool is used the most, and the scarcity of.
The suspicion from various quarters is that Facebook's announcement (7) of its intention to launch a digital currency "Libra" is the reason for China to issue the renminbi. Of course, when it comes to money, one should not be called one of the richest people in the world; Mark Zuckerberg. "Extreme privilege" is how Valéry Giscard d'Estaing, former French President, called the dollar, do you know why? The dollar is used as the world's reserve currency, which means that when countries want to save, they will save in the dollar, which increases its value and thus gives countries that give privilege. Because many countries use it, this term does not apply to money unless it is universal in its management and use.
Now imagine a digital copy of this dollar, the country that will issue the currency and reach the level of the dollar as a digital security will be given the same privilege. If we take China into consideration, they would like this privilege to be their share, and that is what they are looking to accelerate the release of the renminbi to the world as soon as possible, because they will rule the global digital economy, or so they imagine it. The problem is that the renminbi will pose little threat; Simply because Western lawmakers don't trust him and he doesn't have full cash. The race between China and Zuckerberg is now like a battle for the throne. China's central bank said that its currency will be like "Libra" (8), while
Zuckerberg (9) told his country's leaders that if they do not allow him to rule the world's economy - support the entry of Libra - then of course China will do it. Come to think of it, the leaders and legislators did not trust the Chinese renminbi (10), but they will not trust the person who was sued for extracting and selling public data, and that data, which we will discuss, like no other . Of course, you know that what motivated Mark to use Chinese literature as a contribution to the legislature is not his
love for the public welfare of his country, or even the world, or that the good intentions are probably his dream. Well, if he doesn't want to take over the world, he really wants your money. Yes, please feel important. If China has WeChat and Sweden has Swish, so do Western examples like PayPal, Western Union, Visa and American Express. Huw van Stens, a former adviser to the head of the Central Bank of
England, pointed out that these companies add 11% more value than the "FAANG" combined (Facebook, Amazon, Apple, Netflix, Google). Every time someone uses their credit card, these companies benefit from this process, even if it is for a penny, it will eventually increase, because it happens hundreds of thousands of times per minute. Zuckerberg knows it. Not only does Mark want this money, but by suggesting the use of Libra, he wants the global financial system to be in his hands, putting Libra in place of the dollar, and that great privilege become a privilege that no one can afford. . But what if the central banks got together and started their "single currency", as suggested by former central bank governor Mark Carney, would it be a good alternative to the dollar? distinguish
Do you remember the last time you spent money? What did you buy? dream? clay tablet ? taboo? Have you spent years at home with your terminally ill wife, but she can't conceive? No one will blame you for your money on what you spend or where you get it. This is something that no one has to do, or maybe it is for him? If you were to buy bonds, do you think you would want the government to know? Of course, no one wants that. This particular feature is the most important characteristic of money, not credit cards, not digital money, maybe bitcoin, but money, and only money with this lost relationship, who maybe if Al-Mutanabbi is in the middle we now, he will recite a thousand lines of poetry as words of ignorance. Some people trust their government completely, as we said before, and can sacrifice themselves hoping that the government will not fail and destroy their money. But the rest of those will not agree to give up their financial secrets; Because they don't trust the government when it comes to privacy - if any - not just privacy?
But Jeremy Warner, an economist and reporter at the Daily Telegraph, believes that there is no such thing as private finance (13) as an entrenched concept in central banking. But since it is a necessary evil, trusting the government will be easier than trusting Zuckerberg and falling into his trap. So, since it is a necessary evil, the government can create money but is the government blind to this information? Especially since the technology is possible to do it thanks to the encryption method as (14) "No knowledge-proof", used in the system "Z-cash"? There is no indication that the local government will turn a blind eye if it learns some kind of useful data about its citizens, it is like playing with the government in secret and cheating it.
What about bitcoins? Why not use it to make a coin, or use it as money? The answer involves a philosophical aspect of behavior, as well as a technical one. First, what does that mean? Central banks and financial institutions take some of the characteristics of Bitcoin and apply them according to their goals, but can they be accepted as a real digital currency? No, the type of government that can accept Bitcoin or Libra, or any currency that comes from the year of the central bank, is missing the most important part of real cryptocurrencies: decentralization. Cryptocurrencies are removed because there is no single company that oversees them in terms of authority, and there is no failure or even weakness that any adversary can attack. Without an intermediary such as a bank to witness the completion of the transaction, each transaction must be approved by agreement - sending and receiving - in the cryptocurrency network, but this requires a lot of computing power. This is why the bitcoin transfer process can take an hour or more. Can digital currency achieve the same level of security and privacy as Bitcoin?
Mohamed Abdel Basset, Founder and Director of Cybersecurity and Seekurity, responded to Meedan's question by saying, "None of these funds will be able to access the privacy that Bitcoin has. When you build funds these people, the first consideration is privacy.. and it is built with blockchain technology that supports this idea. Let's not forget that the creation is to exchange money between "players", even if the identity of the sender and receiver is not known, and what helped spread its spread further is precisely here: privacy. But if the government follows the sender and the receiver here, the money has lost its most important thing, which is the break. If we look at one of the weaknesses of cryptocurrency, for example (51% attack). When one of the other parties owns 51% of Bitcoin, they have the upper hand to control the entire system; This party may cancel or cancel the transaction for any reason. When we asked him if he was behind the idea of decentralization, he replied: "Of course, he is against the idea of decentralization, but he assures that no part of the world has 51% of Bitcoin, even China, which has. The largest number of Bitcoin, has not reached this percentage." Therefore, no one controls it, and this is the secret of its power, which is its promotion of decentralization. Regarding the pace of change, Muhammad Abdel Basset told Meydan:
In a recent article, Jill Carlson (15), founder of the Open Money Initiative, argued that decentralized cryptocurrencies like Bitcoin may not be intended for public use. The purpose of its creation is to avoid exposure to commercial audits. Or paying for drugs or sex, supporting political opponents, or getting money from countries where business is under restrictive financial controls. Therefore, Bitcoin users have left the speed - it takes hours to change - and are missing for only one feature: "checkout". Now imagine these types of businesses adding all of their financial transactions, it's a really scary world.
I am sure you have heard that the world will change after the "Covid-19" epidemic hundreds of times in a few months.
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