With the arrival of different movie productions such as Spider-Man: Across the Spider-Verse, Everything Everywhere All at Once, Doctor Strange in the Multiverse of Madness, or Spider-Man: No Way Home, the concept of “multiverse” has become more understandable. In these productions, the multiverse reflects how there are different universes with its respective planet Earth, but each planet has particular “variations” according to the universe to which it belongs, (for example, on one Earth, certain historical events occurred differently.)
Considering this concept, in this article, we will talk about three possible realities or “Earths” related to Fintech, specifically regarding the crypto (cryptocurrencies) and FIAT (fiat money) environment.
Warning: All expressed below are simple “mental exercises” to imagine future “possible scenarios” in crypto and FIAT environments.
Earth 1: The cryptosystem is predominant
In this parallel Earth, the cryptosystem displaced the FIAT system; cryptocurrencies were gradually adopted by different countries because of the constant inflation and deficient monetary policies of different governments until there came the point where most people started to stop using FIAT money to use only cryptocurrencies.
It is important to note that in this reality, there is no single predominant cryptocurrency, but rather there are different cryptocurrencies; the most widely used cryptocurrencies are those with the following characteristics: higher value, decentralization, low energy consumption, lower commissions, and speed in its operations. In this reality, crypto “free competition” has made cryptocurrencies improve all these indicators constantly, allowing users to have more efficient and versatile cryptocurrencies at their disposal.
In this environment, the FIAT system tried to bring out its own cryptocurrencies to compete, but without success, as the same supply-demand left aside the centralized, inefficient, or high-commission cryptocurrencies, while on the other hand, the system rewarded the most decentralized, efficient, and reliable cryptocurrencies. In this type of Earth, Fintechs constantly prosper since they have a favorable environment, which allows them to create different financial products and services with high added value, taking the banking and financial system to a higher level. On Earth 1, blockchain technology has been able to thrive and develop, reaching its full potential and influencing almost all sectors, such as public administration, justice, politics, energy, transportation, labor, health, and defense.
Earth 2: The FIAT system is the predominant one
In this parallel Earth, the FIAT system never let the cryptosystem emerge. After cryptocurrencies were adopted by different countries (because of constant inflation and poor monetary policies in various governments), the FIAT system “counterattacked” with strict rules and laws, making the advancement and development of cryptocurrencies difficult. On Earth 2, the fight between both systems (FIAT and crypto) was challenging as the FIAT system could only prosper or win after implementing a common global currency. The banking and financial system realized that the only way to confront the cryptosystem was to unite. Despite having a single global currency, in Earth 2, financial problems continue, as monetary policy depends on the organization, entity, or state behind the international economic system.
On Earth 2, Fintechs fail to reach their full potential as they are highly constrained or regulated, which prevents them from creating new financial products and services, as they are “forced” to work in the FIAT environment. In this parallel Earth, blockchain technology also has certain limitations; However, it has a lot of potential because of what has happened in the financial sector (and the intense repression of the traditional banking system); other sectors prefer not to get into trouble and do not support its incorporation.
Earth 3: Both systems coexist Crypto + FIAT
In this parallel Earth, the crypto and FIAT systems coexist because after a fight that lasted several years, both systems “shook hands” and decided to live together to find a balance between the two sides. In this reality, each country has 4 or 5 official currencies: The national FIAT currency, an international FIAT currency, and the three most relevant global cryptocurrencies (which meet the parameters of best value, efficiency, reputation, speed, and low energy consumption.)
Competition has made that only these three cryptocurrencies are recognized, but the rest are left behind. Although on Earth 3, some countries wish to be 100 % crypto, in practice, it is difficult for them to do so since precisely part of this “agreement or truce” consists of each country having at least one FIAT currency to generate a certain balance. In this Earth parallel, Fintechs can operate and develop in both systems, but they have the limitation of only being able to work with the most “recognized” cryptocurrencies besides having an obligation to work with the FIAT system; despite these limitations, Fintechs manage to develop different hybrid financial products and services. On Earth 3, blockchain technology has been able to create, but with some restrictions, influencing some sectors such as public administration, labor, and health.
Do any of these Earths reflect any possible future?
As we can see, each of these Earths or worlds represents a possible future; only time will tell us if the future events are close to any of these scenarios; however, we should consider that many variables can influence whether a system prospers or not and that, in the end, the decision is made by the users themselves, who are the ones who finally decide which system they will use, support, or endorse.
What do you think about this topic? What other “Earths” or future scenarios do you think are possible regarding the crypto and FIAT environment?
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