When one looks at the success of the Euro in facilitating trade around the European Union, it makes me wonder sometimes if we can see crypto becoming the global currency of the future. As I tend to gain more experience and insights though, I have come to appreciate the difficulty in achieving such a feat and why it may not work. Notwithstanding, I believe crypto still has a very vital role to play in shaping up the financial system of the future.
A global currency will be more politics than any other thing. Nations simply would not agree (especially powerful ones) on who controls what and we will quickly see any of such deals break down. Control is really big when it comes to the politics of governance which is why regulators have been trying to seize the narrative when it comes to crypto.
The blockchain is a little different when it comes to the measures of control though. Rather than seizing the narrative from nations, it is given to individuals and institutions to run. Of course Nations would rather have something fully under their control, which is why the idea of CBDCs continue to gain more acceptance in various countries.
While we have made remarkable progress in the adoption of crypto, it will be hard to imagine a scenario where all 200+ nations of the World accept one or several cryptos as mediums of exchange and central banks begin to store or issue out credit and debt facilities in crypto.
It could play out at a regional level though, especially with developed nations who need it more but may not have the necessary agreements to come up with an agreeable currency for trade facilitation. Crypto may be a big help in such a situation as it gives the regional or select countries an already proven financial infrastructure to develop, even though that may also have its bottlenecks.
What we may instead see on a global scale is a subtle acceptance of certain crypto currencies as stores of value within their own unique terms of definition depending on the country in question. The beauty about that is any sort of recognition and license to operate and innovate will see the space continue to gain more acceptance due to a higher proof of value.
Conclusion
For now, the crypto space continues to function in small, unrecognized capacities in this regard. Perhaps we don't even need any recognition. If crypto continues to facilitate global small business trade. earnings and value then it does not matter what anyone calls it.