Cryptocurrency as legal tender

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Introduction

Many have often wondered really just about the possibility of cryptocurrency being a legal tender, how would such a thing be? what will it look like? Would it be better than what we have available today or would it be worse? Is there and advantage whatsoever that might come with having cryptocurrency as a legal tender, well if there are advantages would that present any challenge in the global order. This am sure is some of the questions which has puzzled many about the possibility of cryptocurrency being a legal tender.

We often wonder if cryptocurrency really possess all the requirements to become the standard of exchange acceptable in every country of the world, is such a thing something to behold and what will it take to make it a reality. Well many shy away from cryptocurrency due to the its speculative and volatile nature, how would they accept the idea of cryptocurrency as a legal tender.

Well you would agree with me that there are very few issues that is considered in the same complex level as this matter of cryptocurrency as a legal tender, there are many who reasonably argue why cryptocurrency should be a legal tender and many feel it should not be questioning it's ethical implications and possible impact, well whether it would be a good thing or bad, such a thing clearly remains unclear until it becomes a reality. I will write on two points why it could be logical to have cryptocurrency as legal tender and two opposing point why many would object to such idea.

Financial Inclusion

This is one of the reason why many would argue for cryptocurrency being a legal tender due to the fact it seemingly provides financial inclusion in a world where that is seriously lacking in the financial order, many today in the traditional way of things are being left out especially those who are in less civilized and developed areas, the vast population of those in this area are not involved in what is happening in the financial world and that is because of lack of proper infrastructure.

Those who are in places where they are limited banking infrastructure seemingly cut off or left in the use of fiat as legal tender and most often are not able to enjoy to the fullest the benefits of financial services due to their location or seemingly being underbanked or unbanked which present an issue as it limits the number of people who are involved in the world of finance and in the economy of the state which also hinders the economic progress of the place.

When people are limited from the fullest extent of benefit of finance it reduces their involvement in the economy but with cryptocurrency it kind of ensures that everyone openly enjoys full financial services without any hindrance of any sort, cryptocurrency as a legal tender will help provide those with limited access to traditional banking system to full financial services which could help even this one's get involved in the global economy, that is why many argue that cryptocurrency should be used as a legal tender because it creates financial inclusion.

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Decentralization

Another great feature of cryptocurrency that makes it appealing to be used as a legal tender by many today is due to the fact that it's decentralized. Decentralization which is a seemingly key feature of cryptocurrency due to the fact it's based on blockchain technology it's something that sets it apart from fiat which is based or operated from a centralized location which is our trading bank, cryptocurrency on the other hand is based on blockchain technology which is secure and decentralized.

Due to the decentralized nature of cryptocurrency it seemingly sets it apart from the traditional financial services offered by the local banks in our locality which is centralized, decentralized means that cryptocurrency operates on decentralized network which makes it impossible to be controlled by a single entity, no one person at any point in time could possess power to have absolute control over it, the very idea would be absurd ifnot laughable at best and for this reason it means more security for cryptocurrency and for the masses were cryptocurrency to be used as a legal tender.

Cryptocurrency as a legal tender would mean that our currency is more safe and secure and resistant to tampering due to the technology that cryptocurrency is built on and infact another reason why we love the decentralized nature of cryptocurrency is that where it to be used as a legal tender it would greatly reduce the control the government has over currency and infact it would be a currency of the people, one might argue that cryptocurrency as a legal tender being decentralized as it is would demonstrate the very true spirit of democracy and it would help to protect against hyper inflation common today amongst fiat legal means of exchange.

Volatility

Volatility is an ever present issue in the world of cryptocurrency an infact it's one of the major reason why many feel that cryptocurrency doesn't have what it takes to be a legal tender, they fear the economy would be too unstable if am unstable currency as crypto were to used as legal tender, the cryptocurrency market most times behave rather in a crazy manner and it's volatility is seemingly unmatched by any asset class, making many wonder just how could an asset class this speculative be a legal tender.

Infact many question the wisdom of having cryptocurrency as a legal tender and feel that the statement itself is a mere wish and that cryptocurrency could be light years away from being a legal tender, though countries like El Salvador had already moved to make Bitcoin one and their economy have since being improved than it was before but really that does very little to quiet people's fears it seems.

As a medium of exchange the volatility of cryptocurrency means it's unreliable many argue and they feel the notion of cryptocurrency being a legal tender is just as crazy as the cryptocurrency market often is, and in truth cryptocurrency as a legal tender would almost be funny, imagine going to buy a goods in the market valued at 3 Solana today let's say chocolate bar and just the next day it would be valued at 1 Solana and then another day it's now valued at 10 Solana, I mean the uncertainty it's simply unfathomable to many, so cryptocurrency volatility present an issue in it's bid to be a globally legal accepted means of exchange and a legal tender.

Regulatory Challenges

Regulatory challenges presents a big issue and kind of a hindrance why it could be hard for cryptocurrency to become a global legal tender, many frown upon cryptocurrency many countries of the world view cryptocurrency as a scam, some view as as a way that fraudsters operate whilst others see it as a way people launder money and for some others still due to its volatile nature they feel it possess the ability to harm the financial health of their citizen and as such they ban cryptocurrency or do not allow it in their country.

It's not very country today that crypto use is legal in some places it is, in some others it isn't also other places it's rather in a gray area, indeed all crypto enthusiast have hoped for a time when cryptocurrency would be properly regulated infact that could be the reason why many brimed with confidence with bright hope for the future when Donald Trump promised to make America the crypto capital of the world, the made many feel that it could help provide a proper regulatory framework for cryptocurrency given the status of the United States of America in the world and if they did it would move others especially major European countries to follow suite.

Imagine a global cryptocurrency race, well that would be something to behold and could lead to wider adoption for cryptocurrency and help it become a legal tender but for now many government of the world feel cryptocurrency is just too difficult to regulate and monitor and government of the world feel they can't have absolute control and proper monetary policy as they do with fiat if cryptocurrency were to be a legal tender, infact the fear of that undermining their authority or control is something they can't have, so regulatory challenge becomes a major hurdle or why many argue against cryptocurrency as a legal tender.

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Conclusion

The future is still unknown and uncertain but anything is possible and with the technology that's backing cryptocurrency and the way it continues reaching to gain dominance in the financial world, the way it keeps knocking just maybe it's just inevitable for it to become just that though it would need to solve this issue of great volatility because it's not good to have any legal tender be as unstable as the volatile cryptocurrency. Note though the future is malleable and only naive ones could bet against it.