It is common knowledge for us on hives to know that we have both a centralized system and a decentralized system. A centralized system refers to a system where financial transactions, services, and decision-making are primarily controlled and governed by a central authority, typically a government or a central bank, just like the one we have in Nigeria (the Central Bank of Nigeria). In a centralized financial system, the central authority has the power to regulate and oversee various aspects of the financial sector, while a decentralized system is one where financial transaction are not solely controlled by the central authority and government. If you're just learning about this, congratulations. Stay tuned as I have more wisdom to share
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The fact is that many states or countries run a centralized financial system because they want their currency to be the strongest in the world (talk about selfishness). Here are some of the countries that hold the implementation of the centralized financial system seriously: the United States, the United Kingdom, China, Germany, and Japan, to mention a few, but like I said, all countries run a centralized system of government.
It saddens me that the benefits of crypto currency are not seen by most leaders; they only see the advantage, and if it's not that beneficial to them, they cut it off. Most of them sometimes claim it is for the benefit of the country, but there is always a hidden agenda.
A structured cryptocurrency system implemented within a centralized state can indeed create a beneficial environment in several ways, including financial inclusion, transparency and auditability, enhanced security, efficient cross-border transactions, encouraging innovation, and reducing transactional costs.
I will use #Ghana as an example. If you visit the @hiveghana community, you will see the wonders and projects that have been raised and commissioned by the Hive Ghana team, powered by Hive and Web3. Summits are occasionally held there, and more people are coming into contact with the crypto and Web3 knowledge.
Talk about Venezuela, where crypto is now accepted as an exchange for goods and services.
Let's go to the underdeveloped countries. I don't know if this is possible but imagine all government projects that are funded by the public tax are paid through cryptocurrency. Every citizen can go to the blockchain and see for themselves how their taxes are spent to improve their well-being. The thoughts of embezzlement will be clarified.
In Conclusion.
Whatever has an advantage will surely have its disadvantage and that is the rule of this world, but if a good structure system can be integrated for crypto currency in a state or nation, where web3 is given the chance to grow and innovation are allowed to sprout, then there is an endless possibility to what that nation can achieve. Think about it.
Thanks for reading.
This is my entry for the #inleo #mayinleo write up and I am inviting you all to join the daily challenge. You can get more information at leogrowth.