Andreas Antonopoulos Says More State-Sponsored Cryptocurrencies are Coming to Eliminate Cash

Andreas Antonopoulos, a Bitcoin (BTC) proponent and the author of Mastering Bitcoin, talked during a Q&A video about state-sponsored digital currencies. During the last years, there have been several analyses performed by financial institutions such as central banks regarding the issuance of central bank digital currencies (CBDC).

Central Bank Digital Currencies To Control The Population

Until now, only Venezuela was able to launch a state-backed virtual currency called Petro. Although it is supposed to be backed by natural reserves of the country such as gold and diamonds, the digital currency did not reach mass adoption and several countries rejected it as a means of payment.

Bitcoin Q&A: State-sponsored digital currencies and trust minimization https://t.co/dO5ouxiOne

— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) February 28, 2019

There are other nations such as Russi and Iran that have been also evaluating the possibility to release a digital asset to the market and avoid financial sanctions imposed by Western countries. Nevertheless, none of these countries released any cryptocurrency for its citizens or to use among financial institutions.

Andreas Antonopoulos started the video explaining that state-sponsored virtual currencies do not really change anything. These digital assets are going to be centralized, controlled and surveilled by governments. To use them, users will have to submit their identities and regulatory agencies will be able to control what users do with their funds.

About it, he commented:

“What we don’t realize is that one of the reasons why we’re going to see more and more states promoted cryptocurrencies or other forms of digital currency is because we are entering the last era of cash.”

Governments are trying to eradicate cash from the economy. Sweden and China have already taken very important steps in this direction. The Chinese economy processes more than 95% of its payments in a virtual way. WeChat played an important role in increasing the number of individuals paying with digital systems. Sweden has also been trying to create a digital currency to finally integrate those individuals that were not able to start using electronic means of payment.

Antonopoulos said that in many cases, the next generations will never see cash unless they visit a museum. Furthermore, he said that cash will be eradicated because it creates an “unfortunate opening” for freedom in places where there it is not possible to have this freedom.

He explained that cash allows some flexibility in the system when ridiculous things are made illegal. For example, criminals do not use cash because it is not possible to move so much cash. However, these individuals purchase a banking license and start to launder their funds.

In order to eliminate cash, states will be introducing digital currencies. This would allow governments and countries to control everything users do with their funds and it can be monitored. Thus, citizens will not feel safe and free anymore.

Ukraine, Canada, Norway, Uruguay, and the United Kingdom have been analyzing the possibility to release CBDCs as well. Although none of them is going to release one now, they might do so in the future.