There is a relatively low understanding among the public of how money is created and how the economy expands in today's modern economy after 1971 Gold standard deviation.
If some part of the monetary system is taken over by something that is not money, it is almost impossible to be able to control the amount of money in circulation or inflation or the need for new government money will be uncalculatable.
I can not comprehend any country allowing this unless it has got some extremely high tech mechanism to control the amount of money that goes into crypto/libra.
One key difference between a government issued currency and a distributed cryptocurrency is that the former is based on a promise and the latter is based on trust.
A government issued currency is based on the promise [1] given by a state that this money must be accepted by everybody else. Everyone can enforce his rights by law.
A distributed cryptocurrency is based on trust given mutually by the users. The trust relays on the circumstance that no significant number of participants will abandon their precious investment may it be acquired through mining or purchasing of coins.
Exactly. If a substantial amount of people stop trusting the "promissory state money", then the inflation will be uncontrollable (or not controllable by the state) and the state won't be able to give anything in return of their promissory notes.
The trust system only works between participants. Trust can't be enforced.
The promise works with a third party. When two parties to lose confidence/trust into each other they can relay on a thrid party (the gov.) to enforce a prommise between two participants.
If some part of the monetary system is taken over by something that is not money, it is almost impossible to be able to control the amount of money in circulation or inflation or the need for new government money will be uncalculatable.
I can not comprehend any country allowing this unless it has got some extremely high tech mechanism to control the amount of money that goes into crypto/libra.