Bitcoin, as a cryptocurrency, has indicated towards a possible digital future in terms of money. Cryptocurrencies do not exist in the usual sphere of currency rather exist beyond the traditional perception of the global financial system. Also, cryptocurrencies are not akin to cash which is issued by governments. Several crypto fanatics have expected this day to come when digital cryptocurrency would replace the traditional system. This roughly means that a decentralized system of currency would be used by the majority of the population of the world. So, in places of proclaimed currencies such as euros, dollars, and rupees, people would be paying in crypto.
This transition to effect into reality demands that one of the world power countries to adopt the system of multiple cryptocurrencies or a single crypto currency, as the primary form of currency. This transition in currency might require several years or a couple of decades depending upon its implementation. The question now is, by what time would the transition come into effect and which major country will be the first to fully adopt cryptocurrency?
Where Does The Race Begin?
Before we move on to learn which country would adopt the crypto trend first, the race is already over. The Republic of the Marshall Islands is now recognized as the nation which has been successful in adopting cryptocurrency as the future mode of transactions. The Marshall islanders have already embraced the futuristics currency as they have an open system of finance that sow the advantages of blockchain technology. Thus, the Marshall Islands is officially the first country to have adopted digital currency as national currency. As a form of legal national tender, the Marshall islanders have curated their own cryptocurrency. With a population count of 600,000, the Marshall islanders have garnered significant recognition following the adoption.
It is not known widely that Venezuela had beaten the Marshall Islands by launching a digital currency known as the Petro, which was supported by the oil reserves. The distinction between the two is that the Marshall islands’ cryptocurrency, Sovereign or SOV is recognized legally under the nation's legal tender.
Although referred to as a cryptocurrency, SOV differs from other cryptocurrencies such as Bitcoin, Smart Cash, or others because the users are required to provide self-identity for using the digital currency. Although Marshall Islands have adopted SOV cryptocurrency as a national standard of currency, there have been several challenges on their way.
● Preparing The Customers
Before introducing a new form of currency, the population is required to be aware of the currency change. Cryptocurrencies are not usually user-friendly and it might seem easy for tech-savvy beginners although to introduce them in a country requires extensive awareness, opinion, and time.
● Oversight And Regulation
Most countries are willful of adopting cryptocurrencies since it is not stringently looked upon by regulations. Groups and individuals created most cryptocurrencies and had set out the rules and regulations of its usage. The government has full control over how traditional currency is used although cryptocurrency would cause that power to fade away.
● Stability And Fluctuation
For all countries as well as the world economy, the foundation and strength, both lie in the hands of national currency. Notwithstanding the few challenges in traditional currency, dollars, euros, and pounds have remained considerably stable allowing easy price of goods and services. Yet, the cryptocurrencies with relatively short spans are extremely vulnerable with their value dropping and rising unpredictably. You can check out the website to know more bitcoin security tips.
● Longevity And Scalability
With an incredible technology like blockchain it is inevitable for it to encounter challenges. One of its primary issues is scalability which is evident from frequent breakdowns that occurs when the system is crowded with multiple transactions.
Thereafter, it becomes useless to introduce a cryptocurrency when a new technology is about to be released in the next few years.
● Traceability And Privacy
Cryptocurrencies were first launched under the impression of pseudo-anonymity which is a good thing since sales and purchases cannot be traced. This proves to be an issue for the government since non-disclosure of tracking id can lead to tax evasions and frauds.
Thus, we had first expected the major global powers to have adopted the cryptocurrency trend, although Marshall island stole the title of being the first country government to fully adopt cryptocurrency.
