CryptoFiat – the future of money.

If you follow Coinomat developments you must have heard about CoinoUSD, cryptotoken on NXT platform on NXT blockchain tied to USD. Currently it competes with similar projects such us Tether (Bitcoin blockchain-based), Nubits, BitUSD (projects on their own blockchains). You can trade CoinoUSD against NXT and against Bitcoin directly (at Poloniex.com), you can even withdraw it to your bank card. Also we launched CoinoEUR, tied to the single currency.

Within several days we will activate internal accounts at Coinomat.com, and CoinoUSD will become the official internal USD (and CoinoEUR the offical EUR). Coino tokens can be deposited and withdrawn to Coinomat with no fee. Cryptocurrencies can be exchanged to them in order to hedge against volatility. We will even pay interest to balances held at Coinomat, in order to incentivize users to maintain Coinomat balance and share with us profits from our exchange operations.

Projects similar to CoinoUSD start to appear on a regular basis, which seems to be a humble beginning of a upcoming trend of moving traditional finance to blockchain technology. It might seem like science fiction, but the times when banking transactions will be put on blockchain might be no so distant.

It should be noted that blockchain technology is issuance-agnostic, meaning that currency emission is not a part of blockchain technology per se. Coin creation has been ingeniously integrated in Bitcoin protocol by Satoshi Nakamoto, and after that currency emission is an integral part of cryptocurrency picture for many. But it reality coin creation through mining is just a clever trick, the coins can be issued when the blockchain is launched, and they can be issued by a centralized authority. Coin maintenance, on the other hand, is carried out in a decentralized manner, coins can’t be taken from a user against his will, user accounts can’t be blocked.

It’s highly improbable that the governments worldwide will give up on their privilege to print money (alhtough sometimes it looks like they could be better off without it – when the currency is crashed and economy is buried under the rubble). But they will have to adjust to the changing world, and the wheels are turning already – see recent Bank of England Statement for example http://www.telegraph.co.uk/finance/currency/11434904/Bitcoin-revolution-could-be-the-next-internet-says-Bank-of-England.html

Expect a national currency build on Blockchain within five years. On top of that, expect global financial information transfer system, an upgrade to current SWIFT system, within next ten years. No country could be shut off from it, and no country will control it.

Decentralization is the future of human society if it wants to survive and evolve, and blockchain technology is the harbinger of the future, even more beautiful, technologies.

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