Tuesday , August 16 2022

"CryptoLooks may have a future but not currencies"


If the crypto-points (battlefields, libraries, etc.) can be speculative assets and serve as a payment system, their existence is based on the question of political sovereignty, the economist believes in the "World" tribune.

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tribuneThe CryptoLouble Revolution has been announced for several years, but it slowly changes our lives. Interest in battleship, initially very strong, has fallen. Recently, cryptobook craze was restarted after Facebook announced the upcoming launch of the library. The project is ambitious because, according to the information provided, "The Mission of Libra is to promote the development of a single global currency and financial infrastructure serving billions of people",

Many have reacted with the prophecy of the end of the national currencies and the emergence of a monetary order that could fully happen to states and public authorities such as the European Central Bank. Is it realistic? Let us be clear: this vision of the future seems to us to be a liberal utopia that is unlikely to be realized. There are some basic arguments in support of our critical eye.

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To qualify as a "currency," the asset should be routinely used for commercial purposes, which so far is not the case with any cryptoLight. And for a large number of people to agree to use an asset as money, its value must be stable so that its users do not have to constantly question it.

The great power of the states

So we use the euro daily without asking every morning how much it costs one euro. Every crypto that claims to "convince" the public currencies must solve this basic problem before it is routinely accepted in trade.

In this respect, countries have the advantage that no private encryption, even supported by a subject as powerful as Facebook, will never be able to overcome. Because of these advantages, they arise from the nature of political sovereignty: a state may impose payments in its own currency.

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First, states may require taxes – both for businesses and for individuals – to be paid in national currency. Secondly, they may require all accounting documents to be presented in their own currency. Third, all public benefits, including unemployment benefits, pensions, salaries of civil servants, are paid in public currency.

While these three conditions are met (and it is difficult to see how they could not have been, unless the state completely abandons the idea of ​​sovereignty), companies will continue to pay their employees' salaries in national currencies.

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