Cryptocurrency, in a way, has revolutionized the financial industry with the aspect of digital currency. It has been a journey of more than 11 years, from one Cryptocurrency to over 5000 cryptocurrencies. It is highly impossible to count Cryptocurrency users, but it is not that difficult to learn where it stands because of its popularity; since many call cryptocurrency the “future of money”.

Cryptocurrency is backed by blockchain technology, a decentralized network; hence, countries across the world have various regulations and laws on Cryptocurrency and Blockchain. Many countries are welcoming crypto, while some have banned the use of crypto in any form. 

Since Cryptocurrency’s concept and technology are too significant to ignore; the Government from different regions worldwide have been working on creating and issuing their own digital currency.

In this blog, we are going to discuss, The Cryptocurrency Evolution - Countries Issuance Digital Currency.

Many countries like China, Ecuador, Singapore, Senegal, and Tunisia have issued their own cryptocurrency. Also, many countries are working on the issuance of their own national cryptocurrencies such as Japan, Sweden, Russia, Estonia, and Palestine. 

Countries like Sweden and Canada are working on the issuance of digital decentralized currency. 

The concept that is a bit surprising to learn is that countries are even working to replace the paper tender with cryptocurrency, such as, China which is currently working on the paper and virtual version.

Also Read, Evolutionary Regulations of Cryptocurrency

Central Banks are analyzing the countries’ growth and constraints that are already a part of this evolutionary cycle.

The impact on Cryptocurrency like Bitcoin and Ethereum

With the evolution in the world of cryptocurrency, there are speculations on the ramifications of the cryptocurrencies that are not created or issued by the Government - Bitcoin, Etherum, Litecoin, and so forth. The purpose of the Bitcoin creation was to provide a decentralized peer-to-peer network. A network that is for the people, of the people, and by the people. When a cryptocurrency is issued by the Government, it is, of course, a centralized network.

A centralized network has its advantages, but it detaches itself from the whole purpose of Cryptocurrency. Instead, countries, in order to promote their national digital currency, have even banned the use of cryptocurrencies. 

The chances are that it will be highly criticized by the crypto community since Cryptocurrency is just not utilized for transactions but also as an investment or a store of value. It has been lined up as one of the ultimate investment portfolios, which in the case of national digital currency will comparatively be unlikely as they are a lot like the paper tender, and it will be controlled by the Central Banks. 

Also Read, Can The Government Outlaw Bitcoin?

The first country to launch an electronic currency was Ecuador in 2015; eventually, the Government banned Bitcoin and other e-money systems. The very same is even expected from China as it is expected to launch a Chinese Yuan cryptocurrency. On the other hand, The Central Bank of China is anticipated to launch its testing of the digital DC/EP (digital currency/electronic payment) in few cities, along with the involvement of four state-owned banks for the issuance of the digital asset.

The other side of the Crypto story is also about the countries such as Japan, the United States, Canada, and many more that have acknowledged cryptocurrencies like Bitcoin, Ethereum, and so forth.

Cryptocurrencies like Bitcoin and Ethereum have been swinging on their all-time-highs. Many large corporations are accepting and adopting cryptocurrency, cryptos are highly discussed by many celebrities and moreover, it has changed the finance space.

The Government working on the issuance of digital currency will have to keep up with the pace of cryptocurrencies and work with monetary monopoly. It would require all the very attributes of Cryptocurrency and notch up.

With every evolution, there is a bandwagon effect; similarly, it’s for the cryptocurrency and the Government-issued digital currency. Ever since the launch of Cryptocurrency, Governments across the world are working on Cryptocurrency’s alternatives and retaining the position.

The whole purpose of Cryptocurrency as a digital currency was to create a decentralized network, while the involvement of the Government directs towards a centralized network.

Even though both the digital currencies have different attributes, as Martin Dansky quoted “Change is at the very core of evolution and without it, all creatures would look alike and behave the same way.” Thus, it is only time to tell whether an evolutionary digital currency would change the financial world!