One of the main purposes of introducing cryptocurrency was to deal with the imperfections from existing monetary systems that are based on fiat money. As most of us already know (and have probably experienced), inflation is the result of monetary policy — the losses we incur because of it can only be covered by depositing money into banks for interest. Outperforming the system and receiving returns is only possible if you’re involved in trading or own real estate at the very least. However, the current monetary paradigm could be changed through the introduction of a digital monetary system. Let’s find out how!
A monetary system itself simply describes the rules of how a government provides money to the society. This system can be defined as a set of policies, frameworks, and institutions that a government uses to create money in the economy. The main participants of our modern monetary systems include the national treasury, the central bank, the mint, and commercial banks.