The growing adaptation of digital currency globally has laid out severe doubts over the state of traditionalistic national financial models. The question of state financial structures standing up against cryptocurrencies stands to be now a global concern. However, one crypto enthusiast says otherwise. Vitalik Buterin, Ethereum’s co-founder, in a podcast with Block TV revealed his views on the aspect of decentralization of national currency.
Decentralized Currency Now a Reality
The podcast released on 4 March saw Buterin expressing his belief that digitization of national currency can’t be stopped. He stated that global digitization is an inevitable process even without the backing up of blockchain technology. According to Buterin, decentralization of currency would be more suited than a nationally enforced Central Bank Digital Currencies (CBDC).
He hopes for a foreseeable financial future where our currency would be decentralized and more secure. The current situation where legal entities get restricted partly because of increased user control would pave the way for a system of décentralised digital currency.
Buterin also compared and contrasted the types of digital currencies namely sovereign, corporate and decentralized sections of digital currencies. He stated that the main problem of the central banks and national currencies is the centralization of power and the concentration of digital data.
Moreover, financial structures are focused on central sectors that hold strict control over people who can take part in the systems and people who cannot. There is no room for independent free will participation.
CBDC’s Reigning Over Decentralized Currencies
The craze for decentralized currencies hasn’t really soared at the moment. Nations around the globe have been working to enforce CBDCs over decentralized currencies. Even Christine Lagarde, president of the European Central Bank (ECB), in an interview with a French magazine, expressed her approval at the Bank’s decision for the development of a Central Bank Digital Currency (CBDC) recently.