Governments Will Not Stop It
Crypto currencies work on decentralized exchanges that are free from the control and interference of central banks.
Before we delve further into the main topic, it is important to remind ourselves what crypto currencies are. Crypto currencies can be defined as a currency that minted digitally using cryptography and encryption. The process of generating digital currencies is a complex undertaking that involves mathematical computations and algorithms using computers. The currency that is generated is secure and anonymous.
Central banks worldwide control the supply of their currencies in several ways. The first is by printing more money. This is in the form of coins and notes. The other form of controlling the supply of currencies is by setting the reserve requirement that must be met by deposit-taking financial institutions such as banks. This ensures that a certain percentage of the currency does not enter into circulation. Another form of control used by central banks is to influence the rates of interest in the financial markets. The rate of interest controls the supply of money by either making it cheap or expensive to access money.
Compared to crypto currency, central banks do not have any control on the supply of digital currency. The crypto currency cannot be printed but is mined in a manner that restricts its supply. Crypto currency is at the same time not subject to the regimen of conventional interest rates. It has a unique interest rate. It is not subject to the reserve set by central banks as it does not have any deposit-taking institutions that accept crypto currency. This makes the scope of control by the central bank to be nil. Thus, governments cannot control the trading and use of crypto currency.
The use of digital platforms and exchanges that are secure makes it difficult for governments to stop the use of crypto currency. An Atomics swap is one form of crypto currency trading that bypasses the normal protocols that can be regulated by government. Atomic swaps allow users to trade on blockchains that are different using digital signatures. The digital signature acts like an escrow account that ensures the transaction has integrity. The security encryption used by crypto currency exchanges makes it difficult for governments to interfere and to stop its use.
The IMF is planning to roll out its version of bitcoin. This will be known as the IMF Coin. It is planning to eventually replace the current reserve currencies with digital currency as part of its special drawing rights (SDR). This affirmative move by the IMF will deter governments from stopping the use of crypto currency as it points to a future that will shift to the use of crypto currency. This move by the IMF is a signal that the end is nigh for the current forms of currency that are currently being used. There is a new future that will be based on crypto currency and which cannot be stopped by governments.