Using Fiat Currencies
Most of the industry leaders in Cryptocurrencies would agree that this new industry is here to stay and therefore we just need to embrace it and learn to understand and optimise the use of it. And if we want the industry to be as consistent and rewarding as possible then it is very necessary to also ensure that public Blockchains can use fiat currencies for their transactions. Especially now when the Cryptocurrency industry is still so new to so many people and vast majority are very keen to stay using fiat currencies.
At the moment, the majority of transactions in the business world are also still completed using fiat currencies and this trend will continue for some time whilst the world gets used to Cryptocurrencies. Across the globe, fiat currencies are used for income and outgoings, payments and debts. When public Blockchains are introduced it is therefore crucial that they are done so in manner that allows the fiat currencies to still be used. There is absolutely nothing to be gained from stopping or changing the currency from fiat currency transactions. This is for both the general public and for businesses alike. The digital economy is still far too new to make any huge life altering changes in finance.
Using Smart Contracts
Keeping fiat currencies going may be difficult for some although with smart contracts it is a very simple process of accepting the payment via the standard, regular banking process and then the transaction can be easily recorded on the Blockchain. This solves the problem and alleviates any confusion. Although this is not the ideal scenario having two banking systems working alongside each other, it does do the job and provide the necessary support for those using fiat currencies. As highlighted above, this is a very necessary workaround at the moment and for the near future.
Using Asset Tokens
For those wishing to complete business contracts on a public Blockchain, again there is a very easy protocol to follow. Asset tokens can simply be fully exchanged within the one Blockchain. The asset tokens can be swapped for money tokens and because this process is completed on the same Blockchain it is quick and easy to accomplish. It is important to note that by completing this task on the one public Blockchain there is a lot more that can be achieved such as the ability for companies to borrow against an inventory.
The one downside about all of the above is that there will need to be billions and billions of dollars of fiat currency obtainable in token format. These can then be stored on the public Blockchains and be ready for use for the above transactions. This will mean additional work for financial institutions and will enforce the need for a concept where many different currencies and tokens must be able to work together on public Blockchains. It will also require said financial houses to develop regulations to govern these public Blockchains. A somewhat daunting but very important notion.
Things are definitely moving forward in the Cryptocurrency industry and it is gradually being rolled out alongside Blockchain technology. However, there is still very much a need to continue with the more traditional financial system working alongside the new digital economy to ensure a seamless transition.