Launching domestic national digital currency versus using the established Bitcoin

By Wirba Brice Divine Ransinyuy. [email protected]

Launching and establishing a home based national digital currency or cryptocurrency is actually a very handsome and good idea. It is the best initiative any country can take upon at the moment with the current economic crisis and various regulations actually happening at the moment. Digital transactions took a different stand and level with the introduction of cryptocurrencies in particular Bitcoin. Since then, the world has embraced this financial innovation on a rather good perspective. To testify the assertion, it is easily seen on how sates, economic partners and countries are utilizing the best part of this financial innovation.

Bitcoin is actually known to be the most unstable cryptocurrency of all the other cryptocurrencies. With this state of issues, it renders its usage to be actually complicated. As lovers of digital currencies are increasing growing day by day, most users that are nations prefer to go in for something more stable and relevant to their present crisis. This is why nowadays, instead of adopting bitcoin as a home based digital currency, they prefer to establish and launch their own national digital currency. Some countries prefer it for particular reasons while others for a globalized reason. This is actually the case with countries like Iraq and Iran. Since they desired and wanted to establish and launch their own home based digital currency or cyptocurrency, they decided to ban all crypto currencies dealing in their countries in particular Bitcoin. They did so with an argument stating that, Bitcoin could weigh in the establishment and launching process of the home based national digital currency, so in order to avoid it, it is wise and necessary to actually ban the use of any cryptocurrencies in their various territories in particularly Bitcoin.

There are some countries that still use Bitcoin in their shops or to carry out online transactions, they still envisage and prefer the concept of establishing their own digital currency or cryptocurrency due to a fear of a drop in value in Bitcoin, it will adversely affect the users of Bitcoin in their country, thus affecting the whole financial system. This is particularly the case with a nation like Brazil that has a high number of users of Bitcoin in their daily activities, forgetting to use the Brazilian national paper money or currency.

In countries like Japan, Bitcoin actually has a high proportion of users as the country has recognized Bitcoin as an official means of payment are still afraid on the long term, this form of cryptocurrency can have negative effects of the strong existing financial system in Japan. To avoid this negative effect, they have opted to give in more power and utility to the Central Banks of Digital currencies to limit to what extent it can be used in their financial system.