7. The implementation of fiat cryptocurrencies (finally)
Dating back to Bank of England Mark Carney’s famous 2016 Mansion House speech, governments everywhere have been exploring the use of blockchain to supercharge their fiat currencies. Not to be hyperbolic, but I think this decision may prove as consequential as the Bretton Woods consensus to move to a US dollar reserve currency. It could profoundly shape the next 100 years of human prosperity.
2017 brought some interesting developments with China, Russia, Dubai and Venezuela (and some other countries that are not exactly pillars of democracy) leading the way. Many so-called fiat cryptocurrencies are nothing of the kind, but rather attempts by governments to appear innovative and undermine independent cryptocurrencies. In 2018 expect real initiatives to move forward with countries such as Switzerland, Singapore, Canada, India, Estonia, South Korea, Japan, and the UK.
Meanwhile, expect that bitcoin and other actual cryptocurrencies to deepen their utility as a real medium of exchange. There are thousands of large- or medium-sized companies that accept bitcoin for payment of goods and services. There are marquis organizations like Overstock.com, Newegg, Shopify.com, Dish Network, and even Microsoft and Paypal. For many, 2017 was a good year. They didn’t convert their bitcoins to fiat currencies and benefited from the bitcoin value explosion.
Evidence suggests that in 2018 that a growing number of larger retailers and service providers will accept bitcoin (and cryptocurrency in general) as payment. This could include previously mentioned Facebook and Amazon.com.
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