Everyone should learn to accept digital currency, such as Bitcoin, as a safe alternative to fiat money, said Khazanah Nasional Bhd’s former head of digital adoption.
Redza Arbee, who recently released his new book “The Digital Transformation of Money,” said that digital money is now seen as another store of wealth and serves as a barrier. can fight inflation. He highlighted the main attraction of Bitcoin in its role as a ledger of transactions and financial management, and every transaction is recorded and shared.
“Every transaction of anyone who uses the network (and) transfers from one account to another is recorded in lists, books, journals,” he told FMT. This, he said, protects the money and its value from any fraud or investigation by the authorities.
Bitcoin derives its value as a cryptocurrency from its enforced scarcity – 21 million in existence – and its inability to be replicated. At the time of writing, the “real” price of Bitcoin (BTC) is US$63,533 (RM301,104) per unit. As such, many financial transactions occur in parts of the same unit. Redza said that although he does not support the full support of Bitcoin everywhere, it should be carefully considered as an alternative store of wealth than traditional fiat money or bonds and stocks.
“As a city, state, business or society, where do you want to store your assets? I’m not saying go for it 100%. Far from there. “What I’m talking about is understanding how it works. Understand what works for you in the short term and the long term. “Understand the different options and risks. Everything has risks. He deliberately made a tough decision,” he said.
Redza’s reluctance to endorse Bitcoin as an option may come from some fearing its value as a hedge against inflation. Although Bitcoin, by its nature, cannot be adjusted by inflation, Nasdaq warns that its price remains volatile because it is determined by ‘market demand and supply.
The newness of the currency also means that its performance in different economic conditions has not been well tested, and its behavior, especially during periods of inflation, is still largely unknown. Digital currency, an option in a situation of imminent financial scarcity
Redza warned that the current global rate of inflation, with huge debts facing many major economies, could lead to “unprecedented levels” of austerity in the coming years. – the upcoming.
He said that citizens and policy makers will benefit greatly from the growing digital investment. “People need to understand the technology and then, at least, start having a good conversation and plan how to do these things,” he said.
A recent report seems to confirm Redza’s claim. Last year, Reuters reported that by the second quarter of 2023, global debt has reached $313 trillion, led by developed countries such as the United States, Japan, the United Kingdom and France.
That is three times the global GDP of 2023 of $ 104.476 trillion, according to Statista, resulting in a global debt-GDP ratio (which indicates the ability to repay debt) of almost 330 %. In other words, this shows that the situation is ripe for austerity measures.
Although large economies such as the United States and Europe will run over the effects, the analysis of the World Bank shows that emerging economies and developing countries have been affected by the debt crisis first. The International Monetary Fund estimates that at least 100 countries will cut spending on health, education and social security to meet debt obligations.
Emphasizing that the austerity campaign will hit both the rich and the poor, Redza criticized the elderly and the wealthy for their disdain for Bitcoin and other digital currencies. “They look at something like Bitcoin, for example, saying ‘Ah, that’s for children, I don’t know, this technology is difficult to understand. It’s a scam, it’s a Ponzi, it’s not a scam?’. “What I’m saying is that we need to understand the difference between an accounting book and a business letter. It’s just an accounting book. That’s it,” he said.
“The Digital Transformation of Money” can be ordered directly from Marsden’s legal document here. Alternatively, you can go to their office in Publika to buy your membership, or opt for it
