Since the time cryptocurrencies have come into existence, it has been universally assumed that they would one day replace Fiat currencies issued by central banks. But there also lies a possibility of fiat and cryptos coexisting. Well according to Vitalik Buterin, the current relationship between cryptocurrencies and fiat is that of co-existence and not competition.
Is it possible for Fiats and Cryptos to co-exist?
As per the news published Nikkei news, Vitalik Buterin said in an interview that the relationship between cryptocurrency and legal currency is not competition, but coexistence. According to him blockchain technology has produced practical value and expressed his confidence in blockchain’s effectiveness.
When talking about the bear market in the crypto industry, Vitalik said that there has been an existence of a bubble in the industry but has contracted. Vitalik also mentioned that excessive excitement or panic is human nature and that’s has led to the speculative fever which took the prices up in the latter half of last year and the decline in the price since entering this year.
Vitalik, being a founder of Ethereum, has been a big propagator of cryptocurrencies but has been pretty vocal on the changing dynamics of the industry and economies. Vitalik usually is not a big fan of centralized organization and has always been found criticizing them.
In July this year, Vitalik, while speaking at the TechCrunch Sessions Blockchain event in Zug, Switzerland had said that he does not see any future for centralized crypto exchanges and believes they should “burn in hell”.
Last year in October, Vitalik had said that he isn’t worried about coming competition from the central banks of the world as then he had downplayed the possibility of countries creating digital versions of their currencies that could rival or displace bitcoin or Ethereum.
A change in Vitalik’s stance towards Fiat leads to an interesting debate as this is not the first time someone had spoken about the co-existence of cryptos and fiats.
Earlier in 2017, the South Korean central bank had also echoed the same idea of co-existence of cryptocurrencies and Fiats. Since then a lot of experts, regulators, and analyst have bought up the same idea. How much of that would come true is yet be seen but surely this could be a situation if things don’t move quickly on either side.
Do you think this model of crypto- fiat co-existence possible? Do let us know your views on the same