If cryptocurrencies were the official currency of the world, there would be many profound changes in the economy, politics, and daily life. Here is a general overview of what that world might look like:
1. More decentralized finance
Traditional banks would lose power, as many functions (such as transfers, loans, or investments) would be done directly between people through decentralized platforms (DeFi).
Governments would have less control over the issuance of money and interest rates.
2. Instant global payments
International transactions would be faster and cheaper, without the need for intermediaries like SWIFT.
This would facilitate international trade and the financial inclusion of people without access to traditional banking.
3. Greater privacy (but with nuances)
Some cryptos like Monero or Zcash allow for anonymous transactions, which would provide more privacy to users.
But it could also complicate the fight against money laundering and illegal financing.
4. High volatility and risk
Many cryptocurrencies are extremely volatile. If they were the official currency, there would be significant risks of sudden inflation or deflation.
Economic stability would be a major challenge, unless stablecoins (cryptocurrencies tied to stable currencies like the dollar) were used.
5. New forms of governance and work
With the use of smart contracts, governments could automate subsidies, tax payments, and regulations.
Jobs related to blockchain (developers, auditors, analysts) would become much more common.
6. Technological inequality
People without internet access or digital skills would be excluded from the economic system.
Digital fraud could also increase if the ecosystem is not well regulated.
