Cash, Cryptocurrency and Government

Today I am writing a review of an article I read by @nanzo-scoops about the war on cash. It was a short article and thoughtfully worded. It dealt with government backed efforts to reduce the use of untraceable currency or cash. The world has changed and now governments view with suspicion people who use the legal tender of their country.

What a paradox!
Now governments want you to use digital forms of their currency, because it’s traceable.

The article went on to explain how some governments are even developing or have developed their own cryptocurrency because a blockchain is actually a better way to trace all transactions when it’s used or misused, depending on your point of view.

After reading it, I thought back to news stories about the Indian government getting rid of 100 Rupee notes as legal tender and encouraging citizens to use checks and keep their cash in bank accounts. It also reminded me of articles written by governments encouraging their citizens to use checks and credit cards for their purchases and transactions. And taking the unusual step of proclaiming that only criminals use cash to hide their transactions from the government. After reading Nanzo’s article and reflecting on these other news stories I write this review.

I think that many governments are moving to restrict cash transactions because they are untraceable. I read that the governments concerns about cash are that it facilitates crime or terrorism, but wonder if it’s more about taxes.

Into this somewhat volatile environment a few governments have created government backed cryptocurrencies. A government controlled blockchain offers much better ways to track everything and provides mountains of data to mine.

Then the creator of Facebook Mark Zuckerberg creates Libra, proposing the creation of a cryptocurrency blockchain which would have over 2 billion users at the point of creation. Thus he would control additional amounts of data on these 2 billion people in Facebook.

Plus Libra would or could provide cheap, potentially free transactions and the transfer of wealth from point “a” to point “b” in seconds and this financial network would operate without following a single government regulation. It only needs a permissive atmosphere.

Wow! Some Governments don’t want you to use their currency, except in its digital traceable form, other governments are creating their own cryptocurrency blockchains enabling them to track every single transaction you make! And Facebook is preparing a new proposed cryptocurrency which could enable people to use a cryptocurrency to transfer wealth to others for transactions or transference of wealth without using banks or their countries currency and that threatens to turn the Banking system and financial world upside down.

Grab your popcorn folks! This is about to get real interesting.

@shortsegments