Fiat

Most cryptocurrencies have been bullish in this year, and are expected to do even better in 2021.The year 2020 is ending on a good note on the side of the cryptocurrency industry. The year has seen governments begging citizens to use digital payment solutions instead of fiat money.

Many governments as well as citizens remain cautious about cryptocurrencies as they lack awareness and understanding of their nature. However, history proves that digital currencies are just another form of money like shells or silver coins with the only difference that it cannot be touched for the first time ever.

When released, China’s Central Bank Digital Currency (CBDC) might replace fiat yuan in circulation. At least, that was what Fan Yifei, the Deputy Chairman of the People’s Bank of China (PBoC), stated in his article published at Financial News local outlet.

The Bitcoin transactions on the darknet has decreased dramatically in 2020 compared to other years.

As the world becomes increasingly digital, more and more people turn their attention to cryptocurrencies. In fear of fiat money being replaced, governments and central banks are looking to create their own digital currency. However, as their plans will be implemented, the world might face a full-scale financial war between centralized and decentralized technologies.

The Bank of Korea established an advisory group to revise the legislative framework before the launch of the digital won. Despite their CBDC will more resemble a digital version of fiat currency, it is obvious that the existing financial legislation should be adjusted to the circulation of a new digital asset.

The International Monetary Fund (IMF), an organization working to secure financial stability globally, has repeatedly expressed its antagonism to the issuance and circulation of the Marshall Islands’ state-run digital money currency.

A major Austrian banking group, Raiffeisen Bank International (RBI), is conducting a tokenization experiment in fiat currencies based on distributed ledger tech (DLT) and blockchain.

Stablecoins climb up in market cap value, while cryptocurrencies still fail to recover from the post-pandemic knockout. This wasn’t left unnoticed by the world governments, and notably, G20, who already sought ways how to cope with a growing demand for stablecoins.