Will the transition of "old money" to "new money-cryptocurrencies" be smooth?

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With APY's on yield farming reaching insane levels and also crypto being seen as a good hedge against fiat now there is a feeling that crypto is replacing standard money. Though I don’t think cryptocurrencies will replace “standard money” immediately fully. The main reason is, there are too many formal big players like Banks, Payment processors and many other middle men, agencies out there who get their share from the current monetary system.

Perhaps as more adoption grows and more business Blockchains like Concordium start serving the masses by integrating public blockchain in enterprises, with regulatory compliance and on chain ID verification in place, it might become easier for businesses to adopt this technology and might become a strong parallel money system that can co-exist with the traditional money.

Global Debt is something that is to be a major worry for all countries and the fiat money losing its value over years and economies heading towards hype inflation of fiat money.

Banks, governments are looking at introducing stable coins. And digital money dominance will eventually increase with reducing paper money. People will be more comfortable to view digital numbers on their screens and
also have a sense of owning and controlling it, this is when cryptocurrencies will take the cake since it will not be owned by a single entity.

I think we are heading towards a world where the definition of "standard money" itself will change. Now coming to the question of how long will the part last? Well, the part can never stop if it is fully regulated and legal from a regulatory point of view. Hence, I think the way forward will be regulatory compliant crypto. But crypto can never be stopped.

What are your thoughts? What is your "standard money"?
 
Joined
Aug 2020
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Hungary
I also think cryptos will not immediately replace standard money fully. It will require a huge shift on the part of central authorities and banks - not just because they get their share of the current system but also because it would require big advancements both in technology and regulation. Fully adapting to the needed technology could be expensive, plus in most places it takes a lot of time for the legal system to catch up - they haven't even caught up to the current situation. The education of financial and economic experts would have to go through changes as well, and the education system is generally not too quick to adapt, either.

I imagine many people would be untrusting towards cryptos as well, especially those who don't have a preexisting knowledge about them.

So yeah, I see a lot of obstacles in the way of digital money being considered the standard, and it will probably take a lot of time to happen. Right now I think the next step is to break through the barrier of only investors, traders and crypto enthusiasts using cryptocurrencies and make the blockchain an easily available option for everybody.
 
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