The future of currencies in the world
From China to Thailand... Asia is writing the future of digital currency worldwide
The discussion about the future of digital money is increasing and with every rise and fall of the famous currency, "Bitcoin", a significant question is asked whether we will see a complete change in the digitalization of money and virtual currency control, or countries that would like to ban these currencies as a threat to the global banking system. The East Asia Forum provides a vision for the future of digital currency in Asia that can shape the future of digital currency worldwide. This report was supported by the Forum's editorial team at the Crawford School of Public Policy and the Australian National University's School of Asia and the Pacific.
Next time you eat pizza, think about this name: Laszlo Hanitz. This Florida man bought two pizzas for about $20 in 2010. What's the problem? Laszlo paid them with "bitcoin", 10,000 bitcoins to be exact. If Laszlo had saved those coins instead of putting them on pizza, his current wealth would be estimated at $580 million. All is not lost, Laszlo is recorded as the first person to use Bitcoin in business transactions, and his young son has finally fallen in love with pizza. The question that is pressing now: What is the future of digital money? Maybe we will find the answer in Asia! Although the situation for Bitcoin is not good, especially in India where it will be banned, the situation for cryptocurrencies is generally good, and they have great benefits for the economy that will be the first to use them. .
For those who believe in digital currency, bitcoin represents the currency of the future, and they see endless opportunities in it. It will destroy corrupt governments, empower the disenfranchised, promote investment among the unbanked billions, help reduce global poverty, and replace the dollar with creating a new global currency and asset protection. Are the optimists good again? No, the price of bitcoin has grown 144 times faster than it has been traded in the past five years. This high volatility and change for small Bitcoin use in business (few buyers pay for pizza in Bitcoin these days) means that it
does not meet even the most basic living for a currency: using as something that accepts the process of change. Also, the long-term outlook for Bitcoin is not good in Asia. We learned from the crisis of the "Great Depression" the main lesson that money should not be invested in any country (fixing the government rate set by the authorities by combining the money with the currency of another country or the available assets like gold). . When consumers fear the future - in the middle of an epidemic, for example - they start hoarding money and stop spending, and because "what I spend is your money and what you spend is 'my money', this causes a terrible crisis. 'last in destruction and production and money.
The role of the central bank is to stop this decline quickly by increasing money to satisfy people's desire to save money and get them to spend again. What makes bitcoin m
In an op-ed for the East Asia Forum in early April, Gordon Clarke and Amir Hrnich highlighted how cryptocurrency and digital payments are on the rise in Asia. China, along with Cambodia, is leading the world in issuing digital currencies with central bank links, while Singapore has carefully established itself as a leader using a different approach. In both cases, Asian economies are leading innovators, as they avoid the risks of bitcoin by creating a monopoly over the currency, without sharing a common currency. digital and other assets, retain the right to adjust the transfer of their own currency. . .
Since the launch of its digital currency project in 2014, the People's Bank has quickly become the first in the world to launch a major digital currency: the digital yuan. According to Clark and Hernicz in their book: "This currency will attract consumers who are familiar with the use of digital money, and
thus allow the government to change monetary policy at the national level by in controlling the price of money that is not a commercial currency. exists (businesses that do not print money are used. "There are already physical businesses that use digital yuan in capital cities, including "Shenzhen", "Chengdu " and "Suzhou", as consumers receive digital yuan from banks," they added. . For its part, the National Bank of Cambodia launched "baong" in October 2020. This money transfer service, accessible to individuals, supports financial transactions in Cambodian riyals or US dollars. The Bakong has
positioned itself as the “first central bank-run retail payment system using blockchain,” and one-third of the Cambodian population is said to own a share of the Bakong. "Low barriers to entry have spurred financial inclusion, which could lead to a real jump in economic activity, similar to other parts of the world," Clark and Herniech added in their paper. Thailand is also the first country whose central bank issued a digital currency, focusing on direct banking transactions between individuals, as well as in shops and stores using QR codes, mobile phones and account numbers bank. Technical cooperation has
produced significant results, Clark and Hernicz, as "almost 70% of Thai bank account holders have registered for PromptPay, a service used by small merchants who no longer have control money or bring change." Digital currencies promise significant and tangible benefits, ranging from significantly increasing financial inclusion, improving productivity, and boosting investment, consumption, and growth as a result of lower costs of capital. But not all countries on the continent are moving together in this direction, as Clark and Hernich warn in their article that “the Philippines, the first country in Asia to support mobile payments with smart money since 2001, has not built on its leadership.” None of the largest countries in the Association of Southeast Asian Nations are in the lead
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