Milton Friedman had a prophetic vision of Bitcoin back in 1999, recognizing the transformative power of the internet on our lives and the economy. It takes a keen eye to identify such life-altering developments in their early stages.
In 1999, the internet had yet to gain significant relevance, just as Bitcoin remains relatively niche today. Apart from El Salvador, where it has been adopted as an official currency, Bitcoin's use as an "internet currency" is limited.
When we zoom out and assess the broader crypto landscape, the adoption of cryptocurrencies as payment methods is still minuscule. I don't anticipate significant changes in this regard in the near future. It's unlikely that people will be willing to spend Bitcoin, Litecoin, or Ethereum on everyday purchases like bread and milk.
However, I do see a promising future for stablecoins in everyday transactions. Many of us, myself included, are open to utilizing stablecoins for day-to-day expenses. Recently, I came across an article where Circle's CEO suggested that the Chinese government consider using USDC instead of their planned CBDC.
While I don't advocate replacing physical cash entirely with stablecoins, I believe that a hybrid system, combining cash with digital currencies, holds great potential for the future. One of the main drawbacks of the current financial system is the time it takes for payments and money transfers to process.
If you want to send someone cash over the weekend or at night, it can take hours or even days for the funds to reach the recipient's account. The Federal Reserve might have potential solutions, but it's not something that excites me greatly.
The FedNow Service is a new instant payment infrastructure developed by the Federal Reserve that allows financial institutions of every size across the U.S. to provide safe and efficient instant payment services.
Through financial institutions participating in the FedNow Service, businesses and individuals can send and receive instant payments in real time, around the clock, every day of the year. Financial institutions and their service providers can use the service to provide innovative instant payment services to customers, and recipients will have full access to funds immediately, allowing for greater financial flexibility when making time-sensitive payments.
The FedNow Service will be deployed in phases, with the initial launch taking place July 2023.
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FedNow appears to be a potential gateway for the implementation of a CBDC-based financial system. However, this doesn't imply that the end is near. In times of adversity, new opportunities arise, and Bitcoin, along with other decentralized crypto projects, can act as a trojan horse that challenges and disrupts the dominance of CBDCs.
Hive, too, can play a crucial role in establishing a foundation for decentralized payment systems, particularly with its native currency HBD. While the acceptance of HBD as a currency is not widespread among commercial companies, there are numerous options available in Sucre, Bolivia, as some of you may already be aware.
The internet serves as the digital lifeblood of our society, and Hive should claim its rightful share in this realm. Stay vigilant and position yourself on the winning side of these transformative developments.
Thanks for your attention,
Adrian