Blockchain

The Decade of the Consumer–Citizen Governance Dilemma

single-image

bitbond bitcoin lending

The health of a democratic nation’s currency is shaped by two forces: monetary policy, set by its Central Bank; and fiscal policy, set by the state’s ruling government. The thrust of it is that currency and politics are bound together, whether we like it or not. But that’s old news.

Citizens of the cryptosphere are already aware of this, as many members of the community will have been drawn to crypto through dissatisfaction with the governance of modern currencies and the sway that politics has over it. At the very least, we recognize it — and are making choices to hedge our exposure to it.

National politics is increasingly unstable ground — with the political landscape globally colored by polarized opinions. More and more, elections the world over are resulting in coalition governments since no one party receives the majority consensus. Issues such as Brexit — or the incredibly close results in the last United States presidential elections — are demonstrating the deepening divide in opinions, resulting in governments stagnating or acting against the will of a considerable portion of the voting populace.

These are no firm foundations for the money that powers the lives of a nation state’s citizen. Through the powers of technology, we are now global citizens and global consumers. Yet, our global identities are tethered to and restricted by our default currency — that of our home nation-state. Take the British pound — the currency of nearly 68 million people, for example. On the announcement of the Brexit vote result back in 2016, the value of the pound plummeted — a drop, from which the currency has not yet fully recovered. Regardless of whether or not you voted for or against the United Kingdom’s exit from the European Union — the weight this sudden depreciation put on the wallets of the public was the same.

Though it is only January, we’ve already seen rising levels of political turmoil in 2020 — such as the escalating tensions between the U.S. and Iran, weighing on a historically tense political backdrop in the Middle East and garnering concern from leaders globally — how can currency, and its value for holders, sustainably play out against an unstable political backdrop over the next decade? We see three forks in the road ahead of us.

Central banks taking the reins

We have already seen a number of central banks gear up to move into the cryptocurrency space. Appearing to lead the charge are the central banks of authoritarian countries Russia and China, whose initiatives have been making headlines for some time. Central banks of nation-states across the Eurozone have taken middling stances — indicating that, while they are investigating the application of the technology, we are unlikely to see them rolling out their own any time soon.

Related: The Financial System of the Future — Who Benefits From CBDCs?

But, let’s say, for argument’s sake, that over the next decade, central banks rollout the digital iteration of their respective currencies. While this may seem like the most logical progression, there are two sides to the digital coin: A central bank-issued digital currency has built-in acceptability but does not address the challenges of paper currency.

What’s more, this digital national currency is still subject to fiscal policy set by the government, as well as to the challenges of a nation whose consensus is increasingly divided. This scenario is not sustainable for the same reasons as non-digital national currencies.

Corporates take the lead

Another scenario is that digital currency initiatives led by corporations come to the fore. This would feasibly insulate the purchasing power of a given currency holder against government agendas and central bank policies since the governance of such a currency would be the prerogative of the corporation.

Related: Libra Seen as Threat to National Currency Sovereignty, Pleads With G-7

Yet, this may be a case of jumping out of the frying pan into the fire. Corporates are essentially governed by their shareholders, or by the executive board who are trusted to act in line with the shareholders’ values. While this means that decision making on issues of governance could be more efficient, we must consider that shareholder values generally tend more toward profit.

Of course, this is entirely sound for a business — but currencies should not be seen as a business opportunity. If a corporation were to produce and implement a new currency, whose direction is decided in line with shareholder values, we would essentially be returning to the fiscal governance of pre-democracy. In this instance, decisions would be made by an elite ruling class, exposing consumer purchasing power to an agenda set to turn a profit for a select few.

A technological change of tact 

In my mind, there is no doubt that technology will factor into the future of currency: Technology has already become intertwined with most aspects of modern life. When it comes to money and accounting, technology can offer huge value through its agility, security and automatic, immutable record-keeping.

The consumer citizen governance dilemma is really a question of purchasing power — and how much of the purchasing power of a currency should be subject to governance according to political or corporate agendas. Of course, identifying this as a challenge is diagnostic — and a diagnosis is not a solution. But here is where the case for technology becomes especially compelling.

Applied correctly, technology can allow currency holders to set the agenda for the governance of their money. So, instead of peripheral factors — such as public sentiment or a given government’s spending agenda — shaping the health of a currency, individuals could have a democratic say in how they want the currency they hold to be governed. This type of monetary democracy is unprecedented — because until technology revealed the building blocks, it would not have been possible.

Now, it is. With the help of blockchain technology and a ground-up approach to building out issuance and governance policies, we can build a currency that doesn’t rely on a national or corporate entity for issuance. Instead, the crucial functions controlling the money supply can be based on predefined rules and algorithms — offering built-in transparency and reliability, and assurance that these functions are carried out as intended. Since this is not limited by geography nor borders — it could function as a true global currency, accessible to anyone with an internet connection.

The crux of the issue is this: There is a growing need for a global currency that is not a by-product of national politics. In our view, a currency’s governance should take the will of its holders into a direct account. Especially as we, on an individual level, engage more and more with global goods and services — national currencies are increasingly demonstrating that they are unsuited for the needs of modern citizens on the global level. National currencies tend to meet their needs of national economies — they are designed for this. It makes sense that a global economy needs a tailored currency that would accommodate its needs. Modern technology allows users of a currency to become real decision makers; thus, a global digital currency — that will unite all humanity and serve the needs of the users without political interference — is the most compelling parth forward that I can imagine.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Ido Sadeh Man has spent the last 10 years leading product and technology organizations, including both Odysii and Mobli, Considering blockchain as one of the required set of tools for creating updated governance structures for the data-era citizen, Ido has founded an applied research project within Saga the New Contract Policy Institute. The project contributes to the process of defining a new paradigm for a coherent social exchange of value — i.e., an updated social contract.





Source

Leave a Reply

avatar
  Subscribe  
Notify of

You may also like

Blockchain

Four Telcos Test Blockchain Solution To Automate Roaming Discounts

single-image

bitbond bitcoin lending

A group of four international telecommunications companies are currently testing a blockchain-based solution to automate the management of inter-operator roaming discount agreements. According to a report published on Feb. 17 by Mobile Europe, Deutsche Telekom, T-Mobile US, Telefonica and Orange say the solution vastly reduces the complexity of the current system, and is “production ready.”

Simplifying to allow scaling

The new solution revamps a process that hasn’t changed in many years and involves drafting, signing and manually implementing agreements for discounted roaming charges.

Automating this workflow speeds up and streamlines this process. Use of blockchain means that the terms of the agreement cannot subsequently be altered.

New technologies were set to make the existing process even more complex, as Rolf Nafziger, Senior Vice President of Deutsche Telekom Global Carrier, explained:

“The inter-operator workflow in roaming has been basically…


View More Article
Blockchain

Bithumb to Get Wall Street-Level Fintech Expertise via New Partnership

single-image

bitbond bitcoin lending

As not a day goes by without another cryptocurrency partnership, one of the biggest crypto exchanges in South Korea has begun new cooperation.

Major South Korean cryptocurrency exchange Bithumb has partnered with Singaporean crypto trading platform BitMax to jointly develop new services and products.

BitMax’s staff includes former experts from Morgan Stanley, Deutsche Bank and Gemini

According to a Feb. 17 blog post by Bithumb Official, the two companies have signed a Memorandum of Understanding (MoU) to bring their forces together to build new services and strengthen their competitiveness in the global market. As part of the MoU, Bithumb and BitMax will be sharing their expertise with one another to actively cooperate in the development of blockchain and crypto-related technologies and infrastructure.

In the announcement, Bithumb emphasized that BitMax’s founding team includes quant trading experts from Wall Street…


View More Article
Blockchain

Binance Cloud to Allow Users to Launch a Crypto Exchange Within 5 Days

single-image

bitbond bitcoin lending

Binance’s newly released Binance Cloud platform might be somewhat different from what the crypto industry expects the new feature to be.

After Binance founder and CEO Changpeng Zhao (CZ) first hinted at the introduction of Binance Cloud on Feb. 8, the new service has been officially released on Feb. 17, targeting users willing to set up crypto exchanges, according to a blog post by Binance.

All-in-one infrastructure for launching a crypto exchange

According to the announcement, Binance Cloud will serve as an all-in-one infrastructure platform for customers and partners to launch digital asset exchanges based on Binance’s industry-leading technology, security, liquidity as well as custodial services. The solution also supports dashboard for managing funds, multilingual functionality, as well as a range of trading pairs and coin listings.

The Binance’s new exchange-specific cloud solution will provide…


View More Article
Bitcoin

New Email Extortion Scam Targets Google’s AdSense, Demands Bitcoin

single-image

bitbond bitcoin lending

A new extortion scam targeting website owners serving banner ads through Google’s AdSense program has begun circulating the Internet. The malicious scheme demands Bitcoin (BTC) in exchange for preventing an attack, which would purportedly lead to the users’ AdSense account suspension.

The email-based extortion scheme was reported by security news and investigation blog KrebsOnSecurity, on Feb. 17. The blog post detailed that some site owners received a message as their site had been spotted by the malicious program as one seeking revenue from publishing an ad. The message ostensibly read:

“Very soon the warning notice from above will appear at the dashboard of your AdSense account undoubtedly! This will happen due to the fact that we’re about to flood your site with huge amount of direct bot generated web traffic with 100% bounce ratio and thousands of IP’s in rotation…


View More Article
Blockchain

Blockchain Deployment Rises Amid Coronavirus Outbreak

single-image

bitbond bitcoin lending

Amid the ongoing coronavirus epidemic, China has turned to blockchain technology to manage medical data, track supply of virus prevention materials and consult the public.

For the first two weeks of February, China saw the launch of as much as 20 blockchain-based applications designed to help fight the coronavirus outbreak, domestic news outlet People’s Daily Online reported on Feb. 17. Most of the apps are used to manage citizens’ personal data as many people are returning to work this month.

Blockchain is on guard for medical data security

Local authorities noted that blockchain lets them effectively track and secure collected information. Thus, Xi’an, the capital of Shaanxi Province, applies the tech for online consultation and screening, as well as securely manage health records. In Hangzhou, tech company Vastchain Technology rolled out a WeChat-based program dubbed Access Pass. The program generates a…


View More Article
Bitcoin

Bitcoin Price Dips Below $9.5K as Whale Deposits 600 BTC to BitMEX

single-image

bitbond bitcoin lending

Bitcoin (BTC) fell below $9,500 for the first time in almost two weeks on Feb. 17 as downward pressure continued to pressure markets.

Crypto market weekly price chart

Crypto market weekly price chart. Source: Coin360

BTC further rejects $10K

Data from Coin360 and Cointelegraph Markets showed BTC/USD hitting twelve-day lows of $9,485 on Monday. At press time, the BTC price was struggling to find support at $9,500. 

The shift lower followed a four-day slide for Bitcoin, which had topped out at $10,500 before seeing considerable resistance kick in. 

Some traders appeared worried, as evidenced by a single deposit onto derivatives giant BitMEX on Monday, which totaled 600 BTC ($5.72 million).

Weekly losses totaled around 3.5% on the day, while monthly performance remained strong at 7% growth.

As Cointelegraph reported, year-to-date returns…

View More Article
Blockchain

India’s Citizens Will Vote With Blockchain, Election Commissioner Says

single-image

bitbond bitcoin lending

India’s citizens will soon be able to cast votes from outside their city of registration thanks to a blockchain-based system.

According to The Times of India on Feb. 13, India’s Chief Election Commissioner Sunil Arora said that the country hopes to increase voter turnout with a blockchain-based voting solution.

Using blockchain to prevent “lost votes”

Arora said that, in the 2019 elections, 300 million eligible voters did not vote because they were either not politically engaged or were far from where their registered voting district on election day.

The Times of India states that the country has over 450 million migrants that move for work, education, or marriage, but may only do so temporarily, leading most to not bother with re-registering in a new district. 

The commissioner said that regulators are collaborating with the Indian Institute of Technology to develop a blockchain…


View More Article
Blockchain

One Million UEFA Tickets to Be Distributed Via Blockchain in 2020

single-image

bitbond bitcoin lending

Soccer fans in Europe will join the ranks of early blockchain adopters thanks to a new initiative by the Union of European Football Associations (UEFA).

According to a Feb. 17 announcement, UEFA will distribute over one million soccer match tickets via a blockchain-enabled mobile application. The organization claims that this new ticketing system will make “entry into the stadium smooth, safe and secure.”

The new blockchain-based mobile ticketing solution is meant to prevent the duplication and replication of tickets by “QR codes only being activated by Bluetooth once fans are in close proximity to the stadium.” The app will be available for download toward the end of May for both Android and iOS devices.

Tickets will be delivered no later than seven days before the match and “UEFA expects to deliver over one million mobile tickets to fans across all 51…


View More Article