The co-founder and CEO of the video content monetisation platform Streambed Media, Michael J. Casey has made the argument that the traditional financial system is ‘broken’.

Casey wrote a piece for CoinDesk, saying:

“The international monetary system is broken. Helping to fix it poses a huge opportunity for the cryptographers behind cryptocurrency and blockchain technology.”

Casey pointed out that the Bank of England Governor Mark Carney believes cryptocurrencies could end up replacing the US dollar and some other big-time fiat currencies.

Carney spoke on the subject last month, saying that while attending the Federal Reserve’s annual gabfest, that a “synthetic hegemonic currency” could potentially replace the US dollar. This international currency would consist of several digital currencies, issued by a network of central banks throughout the world.

Register for the CC Forum

Casey counters this point by saying that we should be more focused on creating digital currency interoperability instead of developing a worldwide currency from the ground up.

“We need a system of decentralized exchange through which businesses in different countries can use smart contracts to create automated escrow agreements and protect themselves against exchange rate volatility.” 

He went onto say that we need to integrate algorithms that perform atomic swaps and enable cross-chain interoperability.

“We’ll soon have the technology to remove foreign exchange risk from international trade without relying on an intermediating currency such as the dollar.” 

Casey went onto highlight that if foreign trade will not require dollar influence, then it will have a big impact on the US-centric world economy. The potential impact could be a lot bigger than when Nixon unpegged the dollar from gold in 1971. 

He went onto say that the International Monetary Fund could work on establishing an international standard for cross-chain interoperability.

“Regardless, the disruptive technologies behind digital currencies, stablecoins and decentralized exchanges will advance. It’s a ticking time bomb.”

Source link