GovCoin: A Sign of Great Things to Come?

Photo by Bermix Studio on Unsplash

Recently, The Economist and other sources reported significant developments toward implementing Copiosis in the United States. And those in government working on it don’t even realize it.

Most people know Bitcoin, the first cryptocurrency, or “digital asset.” Since Bitcoin’s development in 2009, hundreds of similar cryptocurrencies exist. Digital exchanges such as Bittrex and Coinbase offer the public investment opportunities in these assets.

But what are cryptocurrencies?

Economists disagree on whether or not cryptocurrencies represent legitimate currency. Gold doesn’t back them. Nor does any government. Currencies come from centralized functions, crypto does not.

Decentralization and peer-to-peer transactions inherent in crypto inspired their creation. So it’s clear, at least to us, that digital currencies represent, at best, a hybrid currency.

In 2011, a piece in Forbes magazine called Bitcoin a digital replacement for state-backed currency. This replacement offers many benefits. Virtually impossible to forge, good anywhere in the world and stored on one’s computer as opposed to a bank, these currencies apparently excel over status quo options.

But there are downsides: Bitcoin’s anonymity also attracts hackers, extortionists and other cyber-criminals. Crypto prices fluctuate wildly, which can be good and bad. Writing on recently, business consultant Salman Hasan points out:

“[Bitcoin’s] success is quite flimsy — as a single tweet from Elon Musk drove down its value by 17%.”

– Business Consultant Salman Hasan

Aside from that, cryptocurrency can also be lost, stolen and taxed — just like physical money.

Enter GovCoin

A government-backed digital currency could reverse cryptocurrencies’ trend toward economic decentralization. That could re-impose government control over this new currency. Other financial experts say digital currency will kill retail banking.

Is that good or bad?

If or when banks become obsolete, government would be the only source of credit. Digital entrepreneurs will likely fill that gap (not unlike today’s “payday lenders”). So might criminal outfits. Commerce might get easier though and banking fees and banking-related identity fraud could stop too.

No one really knows whether government digicoins represent a good thing or not. But many things started this way. Including the internet.

Exciting Possibilities!

Time will tell whether these gov-backed coins will create good or harm.

Meanwhile, a new technology, holochain, could disrupt many blockchain-tech-based coins into extinction. Among other advantages, holochain gives people more control over personal data and how it is used. They could even create virtual personal assistants to interact with Amazon, Google and other businesses so they don’t have to. That could put an end to data mining, invasive personal tracking across the internet and more.

Holochain could also support robust rating systems and reputation accounts, and facilitate collaboration and collective intelligence. Before long, it could make possible a digital currency unique to the individual receiving it.

Once that’s done, simply replace debt and the profit motive with Net Benefit…and we’ll find ourselves that much closer to Copiosis.

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