Cryptocurrencies are on their way to become an alternative to the fiat currencies, but will we actually see it happen or they’ll just remain a source for making fiat profits by the general public? In order to get an expert opinion on this matter, BlockPublisher got in touch with the Co-Founder and Core Developer of Ubiq, a decentralized platform aimed at providing a complete ecosystem for developing decentralized applications implementing smart contracts, Luke Williams.
In reply to the question whether cryptos will replace fiat in the future, Luke stated:
I think the technology will replace current payment infrastructure, cash will be phased out, leaving only digital. I would like to see the separation of money and state, however, we are probably a long way from that point.
Luke implied that there are strong chances of digital currencies replacing actual real-life cash, but we are still very from such a future. The convenience that is provided by digital currencies cannot be denied at all. This is what makes them attractive in the eyes of the general public. Luke further added:
In the mid-term we will likely see government issued cryptos, these will still be fiat, just on a blockchain. People will have a choice of a range of currencies to use, both fiat and real cryptos, with a wide range of properties. As we continue to become more and more globalized people will favor borderless currencies with properties they value, over their state issued competitors.
As explained by Luke, it seems that in the future, different governments will launch their own native cryptocurrencies owing to the popularity that they have been achieving. As of now, there is a lack of acceptance shown by the governments worldwide regarding cryptos. But as more and more developments are made and issues like volatility, manipulation etc. are handled, it is surely expected to increase. If governments do not adopt global ones, they are likely to launch their own cryptos. But then comes a dilemma for the people, which currency to favor, local or global?
Luke seemed to be of the view that in such a scenario, people will generally prefer the currencies with a global reach of instead of the local. One of the biggest advantage that cryptos provide is the ability to transcend borders. The ability to access a global marketplace is more attractive to a normal user.
One thing is clear from all this, although cryptos might not be able to replace the current fiat system in the future, they will surely play a major role in the global financial market.