To think about it, a gigantic and inefficient global monetary system is all we’ve got. Lead by unelected individuals who god knows who they are, this system can make or break the fate of the world. To put it simply, policies of this sector can affect pretty much all lives around the world. Now, before this article starts to turn into a second communist manifesto, there was in fact a second coming of Marxist idealism sometime back in 2008. This time, it was more practical yet the creator that is Satoshi remains anonymous. The seemingly decentralized and revolutionary system was at first true to its nature. Decentralized, anonymous and independent of the global monetary system. In fact, crypto filled a void that pointed out the embarrassing flaws of the conventional boomer banking system of the old days.
However, efficiency and utility will always call for the appeal to expand and to grow. And this isolated system that is crypto, managed to branch out into banks and hedge funds and institutions as the ultimate financial apparatus. More capital flowed into the market and adoption took a rapid momentum. In the meantime, function and utility had some improvement but did not develop as much as it needed.
Subsequently, mass adoption brought out centralized industry titans such as Binance and Coinbase and FTX. Soon, there was a cult forming around crypto thanks to a tremendous boom in popularity. Figures like Michael Saylor and Elon Musk spread the good word of hodl and persuaded retail investors to have faith in computer codes and algorithms which they had no idea how they functioned.
Sadly, the utility of crypto did not keep up with the growing popularity. But worry not, useless functions and marketing schemes like NFTs and shitcoins kept the market afloat for a while. But soon, in this isolated (unregulated) crypt market, Entropy began to turn into chaos. Somewhere, in the drug infused orgies of billionaire crypto entrepreneurs, something went wrong.
And here we are, in the post Luna crash and FTX collapse era. Elon is still pumping the market to no avail and Saylor keeps shitposting on Twitter. Yet, retail investors do not believe a word. And finally, the global monetary system seems to be going after crypto. But here’s the catch, they will not try to bring down crypto, but rather swallow and integrate crypto into their own kerfuffle. And there is our bottom line, most, if not all crypto CEOs will gladly accept the overlords’ terms. After all, can’t beat them, join ‘em.
And how will the global monetary system bring crypto into its own corrupt embrace? Regulations!
The Undying Global Monetary System
The executive board of the International Monetary Fund (IMF) have expressed their concerns about crypto assets. According to IMF, the board considers crypto assets and their rising adoption a threat.
For the most part, they all agree that crypto assets will have crucial implications on the UN financial agency’s mandate and policies. With that, what they do demand is providing guidance regarding policy response to crypto assets.
“In particular, the widespread adoption of crypto assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, and exacerbate fiscal risks. Widespread adoption could also have significant implications for the international monetary system in the longer term.”
To put it simply, IMF directors are calling for countries that are adoption crypto to adopt effective strategies. What that means is that they are fighting to keep their grasp on the financial system of such countries.
“Directors, therefore, emphasized that robust macroeconomic policies, including credible institutions and monetary policy frameworks are first-order requirements and that Fund advice in these areas will remain crucial.”
Now, with all the scandalous pump and dump crypto schemes, regulators are finding it easy to impose more regulations.
Perhaps, cryptocurrencies may have had their debut as decentralized and independent. Satoshi may have been a revolutionary figure who did not seem to want to compromise and wanted to bring down the global monetary system with a bang. But the reality of the situation is far from what is promised.
When all is said and done, crypto industry is now more centralized than decentralized. And the massive influence that a few individuals have over the market will eventually make the market a lost cause. With that, this article predicts that crypto assets will integrate into the global monetary system. Maybe not today, but sometime in the future cryptocurrencies will be fully and extensively regulated. And then, the global monetary system will finally have its own prodigal son back!