Bitcoin enthusiasts’ utopian dream, the whole replacement of fiat money for the digital currency, can turn from the transparent free system into the dictatorship. Developments of companies inspired by the blockchain not always support the fundamental decentralization concept and leave the overhead regulation.
Cash refusal: two opinions
On one hand, desire to make transactions transparent and, consequently, to enhance the funds flow control provides more arguments for cryptocurrency followers. Transparency means a fight with corruption and shady economy as well as the more efficient tax system. In 2018, 500-euro banknote is expected to be withdrawn of the turnover.
On the other hand, cash doesn’t allow banks to establish the whole dictatorship over citizens: as long as there is a lot of cash money in the turnover, it is difficult for financial establishments to keep control over the most primitive operations of ordinary people. If cash becomes a thing of the past, people risk becoming dependent on banks requirements.
Not everyone dreams about decentralization
Some regulators think over transferring to the digital currency, although it doesn’t mean decentralization. RSCoin is the example of such project. This digital values transfer system is based on the distributed ledger technology, but differs from Bitcoin in supporting the old centralization concept: the system allows central banks to fully control it. So, if the digital currency, like RSCoin, comes into common use, the regulator will be able to oversight all customers’ expenditures.
True enthusiasts
Expecting the end of cash economy, cryptocurrency developers started dealing with solutions that are potentially able to remove the banking dictatorship.
Thus, BitPay along with Visa presented the Bitcoin card for cryptocurrency store and active use. The user can pay for purchases and encash digital money in ATMs, in other words, to conduct operations similar to traditional currencies. But such service is available only for USA citizens.
