Fiat 2.0 Currency – What Would that Mean?

The world economy is still using an old-fashioned style and it urgently needs to introduce new technologies that can help modernize the current financial system. Today, there are still 2 billion unbanked adults that should have access to modern financial services. To make matters worse, the monetary friction is extremely high, setting transaction costs at a predatory level.
Fiat 2.0 – digital Fiat Currency
What if governments started to introduce Fiat 2.0? That would most certainly be a Bitcoin derivate although it would be based on a new kind of technology.
Could a Fiat 2.0 coin technology, if properly designed, eliminate this friction by allowing anyone to be their own Bank. The answer is that it could possibly decrease transaction costs. However, for this to happen we should consider a number of issues that would be standing in the way.

This post was published at NewsBTC on May 5, 2015.