The financial crisis and the events that followed sparked
the creation of Bitcoin, the world’s first decentralized digital currency. The
creation of Bitcoin helped generate different sorts of digital currencies with
different goals.
Over the last few years, there has been debate in Scotland
to go independent. As a result, there was a debate over what currency they
should use. A think tank developed the ScotPound proposal which wants to create
a currency alongside the country’s existing fiat currency.
Watch the YouTube video below to get an understanding on how
it would work. If you are ambitious, I added a link to the proposal that goes
into specifics.
What do you think? Would this actually work in practice? How
could a currency like this help the United States if there is a recession?
You probably cover this some in your sip, but before a digital currency can become successful it will need to tighten security. Right now the value just seems too volatile for people to trust it. It is absolutely essential for the US economy that the value of the dollar stay relatively stable, and it does this because people trust its value. It may be awhile before people will be able to trust the ScotPound, but we will see.
ReplyDeleteI am also sure you touch on a lot of this stuff in your sip, but I am really interested to see how the older generations who aren't accustom to technology will do if everything is all digital.
ReplyDeleteIn general I do find this concept very interesting because I do feel like this is very progressive and the use of paper money is slowly deteriorating. I am just concerned for those who do not have a lot of money or have bad credit. Will this place them in even more debt?
I agree with Rachel, while I think the idea of electronic currency to be progressive and toward where we are heading, I feel like older generations may be negatively affected. Our generation was the first real one to grow up with all these technology so we are much more accustomed and open to the idea of electronic currency, but I think older people will have much more trouble.
ReplyDeleteAlso I think that if we transform completely to electronic currency, we should look at how it impacts all people and if people will be negatively affected by the switch. In addition to the point Spencer made I think the security must be tightened and that more rules and regulations must be added and enforced to stabilize the value to make it something people will trust and have faith in.
I believe it will be major trends within few decades. Interestingly, in South Korea, the central bank tried to make the society that has no coin by 2020s. It's because not many people start to use real money, and rather they use more credit cards. With this trend, hard currency will start to disappear, while credit cards and other electronic forms of currency will be activated.
ReplyDeleteThere will be a lot to be developed at this point, in terms of technology and security. However, I believe that Scotland moves in advance and heads towards a right way.
Kenny's SIP does cover a lot of ground. I am not as excited about electronic currency as some of you. The middle class will find it harder to save because they will be less likely to be able to divert their savings into non-monetary assets.
ReplyDelete