Private money emerged a long time ago and was quite common.
But despite this, a monopoly on the issuance of such money was established only in the 19th century. When only coins were used, private money posed no threat to the economy of the state, served as banknotes and was legal. With the emergence of legal currency, which was not backed by precious metals, the issue of private money was limited. This and other factors, which adversely affect the stability of the state currency, are often followed by the emergence of pyramid schemes based on private money, the issuance of autonomous currencies and the substitution of values between social unrest. The encrypted currency is not regulated by the legislative authorities and the control over such a large flow of funds is almost impossible, for this reason it could also be classified as private money. Blockchain technology has radically changed the idea of creating crypto-currencies against the purpose of private money.
Why are politicians reluctant to use Blockchain?
History knows many examples where heads of state (especially those from third world countries) have deliberately fueled international conflicts, raised local wars and caused an internal financial crisis. And the reason for all these demands was a ground for corruption and money laundering at the time of an unstable situation in the country. Imagine what would happen if all financial assets were carried out in the Blockchain.
Each new transaction will be irreversibly recorded in the continuous chain of blocks containing information and any shadow activity will be almost impossible. This can prevent the misappropriation of budgetary funds, which does not benefit certain politicians, officials and other bureaucrats. This is why some states refuse to accept the digital economy, thus maintaining the integration of Blockchain into the real sector of the cold store economy. It means that the management system is not developed based on human needs and capabilities, and the reason for this: people interested in exploiting the negative aspects of the existing business model. Any form of cryptographic activity was strictly prohibited in several countries: Iceland, Vietnam, Indonesia, Bangladesh, Bolivia, China, Nepal, Lebanon and Ecuador.
On the other hand, we have been completely open to innovations and technological progress. For example, Ukraine, where a series of invoices that provide further loyalty to the Blockchain industry by the state, is undergoing rapid drafting. Only recently dozens of promising projects based on distributed ledger technology have been registered. One of the most important projects is the Bitbon System, a financial cryptography project with unique services and tools, which allows users to interact in a transparent way: sell, buy, execute fast transactions, invest in security without intermediaries and high costs. But still, the platform works completely within the current legislation, indicating its reliability.
How will Blockchain technology develop in the future?
Blockchain is a decentralized ledger, useful in any field, where it is necessary to keep records, such as accounting, medicine, politics, science, etc. This technology is implemented in existing projects and is used to develop many new ones. It can not be denied that Blockchain is a revolutionary revolution alongside telecommunication services, mobile communication and the Internet. At some point, this technology will completely replace the obsolete accounting mechanisms, bringing the company closer to the new digital age.