Cryptocurrency – The cure for corruption
Cryptocurrencies and the blockchain technology they are built on have the potential to upset government-backed currency systems. The decentralised nature of cryptocurrencies means participants can trade money freely without restrictions, and potentially create global governments on the blockchain. MyBroadband spoke to cryptocurrency expert Simon Dingle about how blockchain technology will affect governance in South Africa and around the world, with the lack of geographic restrictions one its biggest advantages.
The nature of cryptocurrencies means that they can operate without restrictions based on location or political climate. Dingle said the implications of global currency systems will have far-reaching effects on governance and currency trade. “Cryptocurrencies are inherently global and do not operate in terms of borders.
This is the first planetary revolution in governance and, as such, is unprecedented,” said Dingle. In its current nascent state, cryptocurrency can already be used to freely move money across borders with minimal transaction costs. The only current limitation of this system is the regulation of fiat-to-cryptocurrency exchanges, which would become unnecessary if cryptocurrency gained wide support as a transactional system.
Dingle said cryptocurrency and blockchain technology could also help citizens wrest control of their finances away from corrupt governments.
“The opportunities for cryptocurrency in South Africa are the same as the rest of the world – for us to take control back from corrupt, centralised governance structures and tell a better story about money and our self-worth,” he said. He said widespread adoption of cryptocurrencies could lead to decentralised governance systems, where citizens have increased control over how their funds are spent to further the interest of their government. Dingle predicts that cryptocurrencies could change society as we know it, with governments becoming powerless as the power of fiat currency wanes in relation to a decentralised currency system.
“Ultimately, this will change all of society, if successful, and will threaten the nation state,” said Dingle.