Key global institutions have come up with a plan called “The Great Reset”. It means a complete transformation of the global economy.
Let’s take a look at what this is and what it could mean for centralized and decentralized finance.
Many things are happening
A pandemic, the automation of workplaces, riots and protests, general tension and many other things are just some of the challenges that humanity currently faces. In the midst of this chaos, global key institutions discussed how to seize opportunities and remake this world. After their debate, they came up with a plan known as “The Great Reset,” a plan to transform the global economy.
Some call this plan radical and ambitious. The WEF representatives see in this plan an opportunity for recovery. This is a new social contract for the world. There is not much information about The Great Reset yet. Details will not be issued until the WEF meeting in January 2021. But in general, it has been announced that it will cover all sectors, from oil to technology, as well as the whole world. However, it is already clear that these grand plans are in stark contrast to the principles of cryptocurrencies. Centralization is a big part of the plan.
Cryptocurrencies are not behind
The cryptocurrency industry is also planning its own “Great Reset”, except it will be based on decentralization. While governments want to issue central bank digital currencies (CBDCs) to give them more control over finances, there are still people who plan to liberate finances. One way is through the blockchain. If everything was on the blockchain, each individual would have control over their property, data and their own money. At the same time, they would not be dependent on the banks or any other central authority.
These crises will force us to reconsider everything
The pandemic and the crises that have just begun will have enormous consequences. They will force us to re-evaluate everything, including money. The development of the CBDC should not be celebrated, because it is not a victory for cryptocurrencies. CBDC is more like a credit card and the banks have absolute power over it. If we want to be free, we have to realize that cryptocurrencies are the solution because they are decentralized and offer privacy. You don’t want the central authority to “cut you off” if you don’t follow the rules.
After the financial crisis in 2008, Satoshi Nakamoto saw what would follow. The crisis and the subsequent rescue of banks that were “too big to fail” inspired him to create decentralized finances – Bitcoin. He was aware that trust was needed for a centralized currency to work. However, central banks have violated this trust many times throughout history.