While markets are focused on a sensational cryptocurrency-related IPO and on China’s announcement that it has created a cryptocurrency version of its regular currency, the yuan, this installment of What’s Ahead looks at a more momentous event that took place a few days before: PayPal has found a way to let consumers use various cryptocurrencies via their PayPal digital wallets to seamlessly buy stuff from the platform’s almost 30 million merchants.
The cryptos are instantly converted into regular money, so sellers have no currency risk. The huge obstacle to cryptos becoming genuine currencies that can be used for commercial transactions has always been their extreme volatility. PayPal has found a way around this.
Moreover, a new class of cryptos, stablecoins, has emerged; these cryptos are tied to an asset, such as the dollar or gold. So this class of crypto also decisively deals with volatility.
With growing ease of use and growing stability, the time is swiftly approaching when cryptos will challenge government monopolies for the creation of money.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy. Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It. Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional). Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate. In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.