Bitcoin and other cryptocurrencies were perceived as monetary units that are not controlled by the state. However, nowadays the governments of many countries are planning to issue their own national currency.
Why is this necessary and is it realizable?
If the goal of issuing traditional money for all states is the same – maintaining the amount of money required for the country’s economy, in the case of cryptocurrency, different countries see the benefits from its release differently.
For Venezuela, national cryptocurrency is a way to overcome the financial crisis and improve the economic situation in the country. President of the Republic Nicholas Maduro said that during the preliminary sale of the national cryptocurrency managed to attract several billion dollars. Venezuela also plans to issue a cryptocurrency, based on the value of gold. So the country is trying to circumvent the US sanctions imposed on it, which make it impossible to attract investors money to the state budget, for example, through the placement of government bonds on world financial markets.
Despite statements by the authorities that the tokens are provided by the country’s oil reserves, in fact it is not. According to the published white paper, the exchange of Petro tokens for Venezuelan oil is not envisaged. The government of Venezuela plans to accept tokens as payment for government payments (for example, taxes, duties), and the official price of one token will be determined in bolivars by a formula that takes into account the price of oil and the Petro market rate. Given the extent to which the official exchange rate of the bolivar differs from the real one, one can say that the Petro tokens are not provided with anything. At the same time, the Petro rate is tied to the cost of oil. In this way, you can call Petro a harder currency than a bolivar. But in general, the issue of tokens is more correctly considered as Maduro’s desperate attempt to attract currency liquidity to the country and give citizens a stronger national currency.
The day after the preliminary sale of the Venezuelan cryptocurrency, the Nationalist Party of Turkey prepared a report on the regulation of the country’s cryptocurrency market. The document provides for the launch of the “national bitcoin” under the name Turkcoin. Earlier, the representatives of the Turkish government had already announced their readiness to issue a national cryptocurrency.
For other countries, the issue of cryptocurrencies is the way to create an entire ecosystem and attract high-quality investments to the country. An example is Estonia, which announced the launch of “estcoin.” The currency will appear in the framework of the state ICO. The proceeds are planned to be transferred to a public-private partnership that will promote the “digital nation”. Foreign investors will be able to obtain a digital ID that will enable the company to register a company in the EU country under a simplified scheme, while the estoins will be able to pay for public and private services in Estonia. But at the same time, the authorities of the country stressed that estkoyin will not become a national currency and does not plan to replace the euro.
Some countries want to issue a cryptocurrency in order to simplify and speed up the development. The regulators of Saudi Arabia and the United Arab Emirates (UAE) announced the release of their own currency, which will be used for cross-border transactions between the two countries.
Other good examples?
In countries with a high turnover of the shadow economy, cryptocurrency will become a way to increase the transparency of transactions.
This logic is followed by China, which, despite the ban on the circulation of digital money within the country, plans to issue a state cryptocurrency. The People’s Bank of China stated that it will appear along with the main national currency – yuan. China intends to reduce the percentage of fraud and counterfeit money, as well as reduce the scale of corruption through the use of blocking technology .
The logic of China is clear: if you prohibit bitcoin, which is often used by people engaged in illegal activities, but introduce a national crypto currency, then all transactions with this currency will be transparent. It is necessary, however, still prohibit the anonymity of purses.
Israel plans to issue a digital shekel, the value of which will be tied to the physical shekel – the national currency of the country. Israel says that the main goal is to fight against the shadow turnover of cash, which is estimated at 22% of the country’s GDP. The authorities expect that the digital currency, issued by the government on the basis of blocking technology, which assumes transparency of all transactions, will complicate the conduct of transactions on the black market.
In the case of Russia, which announced the release of the cryptorough last fall, its goals are not yet very clear. Some officials said that in the light of the development of the digital economy it is necessary to provide citizens with more convenient money in digital form. Others – that the release of the cryptorubl is an opportunity to legislatively consolidate the technology of blockchain. At the same time, do not forget that some of the subjects of the Russian Federation are under US sanctions, although not as stringent as Venezuela, but hampering the attraction of funding (for example, the Republic of Crimea).