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About the need for synthetic FIAT currencies or FIAT-pegged crypto-currencies

Nu, the decentralized central bank that is behind NuBits, the most successful USD-pegged crypto-currency is in fact offering the world, synthetic FIAT currencies, currencies that exist in the Internet, pegged to FIAT money but over which the FEDs have no say. Such synthetic FIAT currencies cannot be illegal since they are fundamentally crypto-currencies, which are regarded as commodities by the FEDs.

And such synthetic FIAT currencies are much in need...right now!

I predict that over the next months (from Oct 2015 ~ Dec 2016), FIAT currencies will undergo the following:

 

1- devaluation: for example, the USD is likely to be devalued compared to the Yuan because the Yuan will get the status of reseve currency by being included into the SDRs, which will rebalance the current financial chess board in which the USD is King.

2- confiscation: central banks will adopt negative interests because they cannot increase them (increasing them would increase exponentially the national debts, which would make economies collapse immediately), which means that you will be losing money just by holding deposits into a bank account.

3- liquidity loss: cash (physical cash that you can hold into your hands in bills and coins) is getting rarer and rarer because economies have been more and more relying on credit and debt.

 

Because of these 3 things, the global economy risks getting stuck for a while and the world cannot afford that.

However, do not except the central banks or goverments to help you because central agencies will be losing their relevance.

This is why, we (individuals) need to create synthetic FIAT currencies that are controlled by decentralized entities so that they are out of reach of centralized corrupt agencies.

FIAT money's stability is obviously a good thing. No one can argue against that.  However, the bad thing about FIAT money is the centralized aspect of the decision-making process of monetary policies because the people have no control over them.

What NuBits is doing right now is what I call synthetic FIAT currencies or FIAT-pegged crypto-currencies. These are crypto-currencies whose monetary policies are made by a decentralized agency (Nu) in order to make the system very robust, very agile and entirely democratic and which enjoy a price stability similar to FIAT money.

Therefore, you have the best of both worlds:

- stability of FIAT

- decentralization of Bitcoin

to put it simple.

 

Right now, NuBits has only one peg, the USD-pegged NuBits, but other pegs such as the Yuan-pegged NuBits, the Euro-pegged NuBits and the SDR-pegged NuBits are in the works according to this.

 

How exciting!

blog   2015/10/09   uploada
タグ:FIAT money