Physical dollar and the digital dollar.

 

 

We are within our time when we start to see the transitional period between the physical dollar and the digital dollar. We are already in the test phases of cryptocurrencies, there are already over a thousand out there but lets take a closer look at the beginning with bitcoin. The very first 'internet coin' to exist brought to you by Satoshi Nakomoto, created in 2008.

 

The vision of peer to peer digital currency. Now, till this day nobody knows the true identity of the creator or multiple creators but this mystery is still very intriguing. Now, my understanding of bitcoin is still like what the heck is this even?!? From when I first started watching it at around 30$USD/Per BTC, keep in mind I was still pretty young. The internet wasn't as new as it felt back in early 2000s but it was new enough where Myspace was the place to be. Forums blossomed, arcade-based games thrived on the web, being a web developer meant you new html. The whole concept of social media hasn't been yet to be explored to what we see today. 

 

Today, there are many exchange websites to convert your funds to bitcoin and they're everywhere now, heck even the bitcoin.org website gives you an option to use an alternative third party; Moonpay.com to participate in bitcoin. Take a look at cashapp first started off as a payment option to easily transact with people and now btc is implemented within the app. All these things exist now, but back then. The thought of even digital currency--it means nothing? But, clearly today is has a different meaning.

 

When we had the dot com boom, and when the internet was still gathering users. We didn't know the potential, and there was also a bit of fear of the unknown not knowing where or how this can turn out. Bitcoin was so new, when coinbase first rolled out you didn't even need to provide details as to (Know Your Customers). No ID, Drivers License was needed, no social to provide, no photo to upload.. Simply, had an email address? Sure, sign-up and buy bitcoin but today that's a whole entire story of its self.

 

Now, most sites require all these things. The anonymity that first was created with bitcoin was now lost, not to mention it was later to be found out that the transactions could be easily linked due to the online-public-blockchain of its nature and came along with dedicated companies to track these transactions. Its open source code led others to create crypto-currencies with the PoW algorithm while others were onto finding a new algorithm. Which all leads back to me believing we are in the test phases - or about to be out and when we start to see a new era of 'Digital Currency' or (CBDC, central bank digital currency).

 

Not only we have BIG TECH out for this space with digital lending; cashapp, squareup, applepay, googlepay, samsungpay etc.. but we have whole countries in itself trying to implement this new era of a cashless society.

Lets take a look at China a major global player and country in not only power but in economics but what will this mean for privacy and ownership? At any will of the government they can wipe your funds? Control, and monitor what transactions are taking place. China has already implemented there version of internet money called the Digital Yaun in numerous cities including: Shenzhen, Chengdu and Suzhou. A project they been working on since 2014.

 

 The Russian central bank has officially launched the digital ruble trial, successfully completing the first central bank digital currency (CBDC) transfers among citizens in 2021. The Bank of Russia said 12 banks had expressed their desire to take part in testing the local CBDC platform. As of now, at least three banks from the pilot group have connected to the platform, out of which two have successfully completed a full cycle of digital ruble transfers, between clients using banking mobile applications. 

Bitcoin(BTC) is already accepted as legal tender in El Salvador and the Central African Republic as both those countries and economies start to divert to bitcoin as their main asset class. Will bitcoin be the worlds currency? 

Source(s):

https://www.investmentfundlawblog.com/say-hello-to-the-secs-digital-currency-working-group/

https://www.cnn.com/2022/03/11/tech/us-digital-dollar-cbdc/index.html

https://nypost.com/2022/01/25/bank-of-america-says-us-digital-currency-is-inevitable/

https://coinidol.com/usa-launch-digital-currency/

https://www.nbcnews.com/tech/crypto/us-government-digital-currency-rcna19248

https://www.coinbase.com/usdc/

https://www.federalreserve.gov/newsevents/central-bank-digital-currency.htm

https://www.cnbc.com/2021/03/05/chinas-digital-yuan-what-is-it-and-how-does-it-work.html

https://www.the-digital-insurer.com/china-in-focus/cif-the-digital-yuan/

https://techhq.com/2022/02/digital-ruble-heres-everything-we-know-about-russias-central-bank-digital-currency/

https://www.cbr.ru/eng/analytics/d_ok/dig_ruble/

https://usethebitcoin.com/el-salvador-and-car-bitcoin-legal-tender/

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