The Future of Money

Natin the word fiat means “hagase”, the term used, usually, at the end of the decrees, thus becomes formed the will of the sovereign, imposed by its hierarchy and authority.Mismo sense has the concept of “dinero fiat”, for it is the sovereign state who prints it with the sole support that grants its statement as such, that is why it is also called “dinner by decree”.But it wasn't always like that. In addition, the next year will be fulfilled 50 years since the United States of North America disassociated the dollar of gold support. It was in 1971 during the presidency of Richard Nixon, when the dollar ceases to be a convertible currency, which today we would call a stablecoin in the world of cryptocurrencies.There are currently several convertible currencies or stablecoins issued against fiat currencies.Although the global financial system learns to live with digital assets, there are still some difficulties to operate between the traditional financial market and digital asset exchanges.Many of the large banks make it difficult to transfer to the trading accounts. In fact, many cryptocurrency exchange platforms have their accounts in banks from non-traditional countries such as South Africa, Estonia, Malta or Taiwan.It is at this point that the currencies “convertible” to the dollar, or to the euro, find their usefulness and market.Once within the crypto world make it easy to exit the most speculative and volatile digital assets, such as Bitcoin or etherium, for stable currencies such as the USDT (Tether).Basically, any convertible currency has a very clear emission rule. There must be real support of the species that represents, i.e. in the Tether case every time a dollar enters the platform administrator account is issued a USDT, and every time a dollar is redeemed a USDT, " In this way the system would be maintained”.At first, it seems odd that a non-governmental, banking and unregulated entity will count on the landlord for such responsibility and be depositary of the trust of investors and timers.However, the diffusion of the virtues of Blockchain technology that audits and regulates the records led hundreds of thousands of people to rely on it, to such a extent that the market capitalization of the USDT is close to the 20 Billions of dollars, i.e. there is this sum deposited in the accounts that Tether Ltd has in various banks in Taiwan.But the most striking is the circulation speed of this electronic asset. Because it is a common stable digital denominator, which arbitrates between fiat and crypto currencies is the currency that registers higher volume of transactions, almost 40 Billions of daily dollars, if twice your monetary base per day!!!! .., this is its symbol, it was designed thinking of taking the best of both worlds, on the one hand, the stability of traditional currencies (stability compared to common cryptodivisas) and the transparency and low cost of cryptodivisas.However, there is no guarantee on the part of Tether ltd. to exchange USDT for real money, that is, that USDT cannot be automatically exchanged for USD.There is another kind of digital currency, of which the traditional financial system speaks with favorable and aggravated expectation by international bodies and central banks. It is CBDC, or digital currencies of central banks (Central Bank Digital Currency).Most developed nations or even some underdeveloped nations are considering the use of CBDC.China, being the world's second economy, leads its first digital currency supported by the central bank. It is known as DCEP (by "digital currency electronic payment" or electronic payment in digital currency). The European Central Bank, in turn, advances in the creation of a digital Euro.The difference between a stablecoin and one CBDC is that a synthetic derivative of a fiduciary currency created by a private company, and the other (CBDC) is strictly a fiduciary currency produced by a central bank.The detractors of the CBCDs in the crypto world consider that their implementation will fundamentally serve to show transactions in a transparent way to facilitate taxation to governments motivated by their earning appetite.Undoubtedly, the CBDC will instantly make money laundering and tax evasion easier to record each transaction and charge online immediately.But they will also serve to prevent government crime. As in the case of ordinary criminals, the traceability of digital assets will force governments to become more transparent.The doubt that is now presented is whether, once the CBDC launched the stablecoins as Tether have future.To a large extent, this will depend on the United States Federal Reserve, first of all, on international financial bodies and the rest of the world's central banks.If CBDC, they serve as a way of accessing and exiting the world of digital assets, they will give a deadly blow to stable currencies based on fiat money and along with them some illegal practices based on paper currencies will also die.Imagine a future where all people who use a digital monetary species in mandatory form and comply with the KYC and AML protocols, Know Your Customer (know your customers) and Anti-money Laundering (prevention of money laundering), to access an electronic wallet, is totally possible in our days.The question is how many rulers want this?Legal notice: This article does not intend to make recommendations to invest in cryptocurrencies or to opt for any specific supplier, service or offer. It also does not recommend making transactions. Cryptocurrencies are speculative, complex and entail significant risks: they are highly volatile and sensitive to third-party activity. Its performance is unpredictable, and past performance does not guarantee future performance. It is advisable to ask for personal advice before relying on this information.