Why should digital currencies be sovereign?

By Wirba Brice Divine Ransinyuy. [email protected]

Digital currency is the current seducing type and form of currency. As time goes on, it keeps on seducing different people from different backgrounds with complete different cultures. Digital currency does not allow anyone untouched. Everyone is attracted by its proximity and reliability. It is a undeniable fact that digital currency is commonly used everyone with the most frequent use being bitcoin as it stands out as the most dominant digital currency with others like Etherum and Litecoin following. Bitcoin is open to all users from the whole world. With users and the entire world having noticed the shortcomings of bitcoin, many think it is necessary that digital currencies be sovereign at different levels.

Experts think that sovereigning digital currency at various levels will be a benefit to those doing so for several reasons. Due to the fact that Bitcoin has no control by its users or any governing body, sovereigning your own digital currency will give you the control over your own digital currency. A leading country spearheading this is China. In order to have control over their own national digital currency, China has simultaneously limited the creation and trading in other digital currencies that are not linked to their own national digital currency.

As countries and companies and societies do sovereign their own digital currencies, it comes with a wide range of implications and advantages. One of the most visible implications and advantages is the fact that it will have a more stable value as a payment method and also when it will be exchanged with paper money. More so, as digital currencies would be sovereign, experts think that it will help in the reduction of various costs of activities and it will also help in the boosting of productivity in the society in general. This will be an advantage because business owners and individuals will not have to pay additional fees or charges like it is the case when dealing in ATM transactions. Since at the nation levels, digital currencies will spring from the Central banks, it will help in the reduction of having the necessity to go at micro banks in order to carry out any transaction of any nature as reported by the Chinese government experts. In addition to this, central banks could easily lower interest rates below zero per cent and as such individuals can easily borrow money from banks and easily return as the interest rate will be low.

Furthermore, if digital currency is sovereign at national levels, it will not only be advantageous to power houses like China and the US, it will also be the case for developing countries as it will broaden and widen financial inclusion by enabling payment methods available to everyone and to all. Still in the same line, to sovereign digital currencies is quite a good idea as it will help to combat tax evasion and illegal economic activities both in the developed developing countries all together.