The Great Reset is Here: What is the Role of Cryptocurrency?

The global economic transformation that has been ongoing for the past few decades faces an important question: Should we choose centralization or decentralization? It’s a dilemma. Humanity and society have faced significant challenges in the past few decades: global pandemics, massive and worldwide protests and job automation. Environmental issues and geopolitical tensions are at an all-time high, and as we face these crises, humanity needs solutions.

The Great Reset is a comprehensive, coordinated agenda for the global economy over the next three decades. The plan goes far beyond simply adding a sustainable concept or two to the mix to save money but instead seeks to transform the world’s economy into a genuinely unified system with nature. However, it is clear that world leaders have big plans for new world order and, contrary to the founding principles of Bitcoin (BTC) and crypto, centralization appears to be a big part of it. The goal is to bring cryptocurrency into the realm of government control by creating central bank digital assets (CBDCs).

For a while, the cryptocurrency industry has been planning its own “Great Reset” as well — one based on decentralization. The idea is that the world’s money needs to be decentralized. We’ve seen what happens when centralized systems control our money supply. They’re not good: They can crash the global economy, like in 2008, or use their power to manipulate prices and make money for themselves instead of their users. It is not news that the blockchain community is constantly working on a solution: a decentralized currency. The idea is that no one person or company should control it; instead, thousands of computers worldwide run a piece of software that verifies transactions on the network.

The current financial system is broken. It’s built for the benefit of the few at the expense of the many. Financial institutions dominate our lives – banks take more than £1 billion from us every day just through fees – while they continue to gamble with our money rather than investing it wisely. As a result, we have little choice but entrust our savings and livelihoods to them.

Yet, the problem lies in how these institutions operate: they are centralized and focused on short-term profits over long-term stability. The result is that they are vulnerable to manipulation by influential players who can influence prices and manipulate markets at will.

We need a system where everyone can have their digital wallet with a personal credit score that they control. Money will become more flexible and liquid than ever before. It is possible to send any amount of money instantly without worrying about bank wire fees or exchange rates.

In a Nutshell

While world leaders publicly discuss the Great Reset, they envision a future economy with more centralized authority. Contrarily, Satoshi stressed the importance of decentralization for a more inclusive future.

The Great Reset will create many hurdles. Issuers of financial products have to restructure their business models and rethink how they plan to survive in the new market environment. Similarly, individuals must adjust to a decentralized financial system that may require them to manage their own assets for the first time.

Image source: Adobe Stock

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.