Why Governments Will Create Their Own Cryptocurrencies (Op-Ed)

No sane person can deny the many benefits of cryptocurrency compared to fiat, and certainly the government can’t deny them, either. The age of e-money seems to be taking off.

Although the government of Ecuador banned Bitcoin in July 2014, for example, it rolled out its own e-currency, an “electronic money system” (SDE in Spanish), in December. Among the reasons cited for doing so, one is how much cheaper it is to renew the country’s deteriorating notes, on which Ecuador spends more than US$3 million yearly.

On another note (pun intended), German economist Peter Bofinger, has argued in favor of transitioning to a cashless society in order to combat tax evasion and drug trafficking. However, according to many German redditors, Germany is a cash-intensive country, which might be an indicator that the transition won’t happen fast, or