The Future of Money: Bitcoin vs GovCoin

Published 16 Jul 2021 by Abhishek Bourai

Table of Content

  1. Are GovCoins inspired by the rise of stable coins like USDT & USDC?
  2. Can GovCoins fill the gap between Stablecoins & Cryptocurrencies?
  3. Conclusion

The idea of money is taking a major step forward with the introduction of GovCoin. Of course, governments will issue this new currency, but what happens when it competes against Bitcoin? Recent research has found that people are more likely to trust an individual than their government, so who do you think would come out on top: How is GovCoins different from regular cryptocurrencies like bitcoin?

Satoshi Nakamoto proposed Bitcoin in 2009 as open-source software. It operates without any central authority or banks, managing transactions and issuing new coins through a process called mining (anyone can also do this). Government authorities issue GovCoin, on the other hand, with all monetary policies decided upon centrally.

The age of carrying around cash is over. Shortly, traditional bank accounts will be a thing of the past as people use Govcoins via a central bank app to purchase goods and services directly from their smartphone devices in an inexpensive way. The idea has already clicked with more than 50 monetary authorities worldwide, including China, who currently leads this change using its E-Yuan, which is used by over 50,000 people globally while also surpassing Bitcoin’s daily volume on exchanges! Next up are Germany and France that want to launch virtual Euros within 10 years, followed closely behind by America preparing for E-Dollar trading too because it’s just easier & makes sense! Finally, Venezuela introduced a government-backed cryptocurrency named Petro to combat the inflation of the Venezuelan Bolivar.

In October 2020, Moscow published a consultation paper on digital rubles and hoped to have a prototype ready by the end of 2021. The first pilots could start in 2021; Nabiullina said this at her keynote address last week.

Are GovCoins inspired by the rise of stable coins like USDT & USDC?

Stable coins have become a good choice to avoid the volatility of cryptocurrencies. These coins can be found on exchanges such as Cxihub, OKEx, Kraken, among others. You can also find Coinbase’s own stable coin called USDC now too! Stablecoins are becoming more popular in crypto-trading markets because they offer protection from economic instability by holding onto your money at all times instead of converting them to fiat or other cryptocurrencies. For more than a year, Tether has silently maintained a reputable third position In the cryptocurrency market after Bitcoin & Ethereum at a whopping $62 Billion market cap. In contrast, the USDC token stands at 8th position with a $25 Billion market cap ATW.

By seeing the tremendous success of stable coins, governments will not want to be left behind and let private companies like ether take over the $ in the digital space! However, even if GovCoins become real, it is hard to say if they will be used like USDT & USDC as a gateway currency for the cryptocurrency market.

Can GovCoins fill the gap between Stablecoins & Cryptocurrencies?

Electronic money is in the future. Governments are developing a way to make it work for everyone, with stability and cheaper transactions. With banks collapsing left and right, governments have been coming up with new ways of making your cash trades more stable than ever before; electronic currency backed by government guarantees will soon be tested!

Conclusion

The future of money is still unclear. However, we know for sure that the world will need a currency to function in an era where cash fades from view and digital payments are ubiquitous. GovCoins may just be poised at the perfect time to fill this gap between stable coins like USDT& USDC and cryptocurrencies like bitcoin. So if you’re interested in learning more about GovCoins or our crypto exchange cxihub, subscribe to our blog & sign up! We’ll keep you updated on all things related to cryptocurrency as it develops over the coming years so you can stay ahead of your competition - no matter what happens with Bitcoin Vs. GovCoins.

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