The case for national digital currencies, not Bitcoin

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2021-06-12 08:30:03

Jun 9, 2021 • Emil Stenström • Future , Bitcoin

Bitcoin is now accepted as legal tender in El Salvador. Many believe all countries should do the same, and that the time is right for Bitcoin to take over the world as a global digital currency.

The core tenet of most cryptocurrencies is decentralization, the idea that no single entity or individual should have absolute control over it. Instead it's protected by the fact that controlling 51% of the network is hard when lots of diverse entities are involved. The push for decentralization in cryptocurrencies is the root of most of its problems.

Instead we should skip the decentralization part, and have a central bank guarantee the value. This makes it stable, and stable is something we definitely need for a currency.