/biz/ - Business & Finance

This is because at a fundamental level any fiat currency is a contract, a ‘promise to pay’, an IOU, which can be written as a contract in Bitcoin (SV), and it’s profitable to write fiat amounts into smart contracts on chain, which inevitably leads to the bitcoinization of fiat. It doesn’t, however, destroy fiat. Governments can still control their own monetary policy by issuing their own currencies and control their fiscal policy, and banks will be able to make loans to customers in fiat on the blockchain.

What governments gain from issuing fiat on the chain is security, auditability and cost savings. It’s cheaper for them to issue fiat on a distributed network that is secured by the free market and the savings can be passed onto the tax payer. And the benefits that accrue to mutually cooperating businesses in different countries that have all issued their fiat on-chain would multiply very fast because they would be conducting trade inside a common, fast, cheap, secure network environment.

>>16747008
This is because at a fundamental level any fiat currency is a contract, a ‘promise to pay’, an IOU, which can be written as a contract in Bitcoin (SV), and it’s profitable to write fiat amounts into smart contracts on chain, which inevitably leads to the bitcoinization of fiat. It doesn’t, however, destroy fiat. Governments can still control their own monetary policy by issuing their own currencies and control their fiscal policy, and banks will be able to make loans to customers in fiat on the blockchain.

What governments gain from issuing fiat on the chain is security, auditability and cost savings. It’s cheaper for them to issue fiat on a distributed network that is secured by the free market and the savings can be passed onto the tax payer. And the benefits that accrue to mutually cooperating businesses in different countries that have all issued their fiat on-chain would multiply very fast because they would be conducting trade inside a common, fast, cheap, secure network environment.