Critics argue that both fiat money and cryptocurrencies have ethical concerns that make them questionable choices for transactions.
Bitcoin, in particular, faces criticism for its environmental impact due to high electricity costs from mining, potential use by criminals, and the lack of regulation and user protections. On the other hand, opponents of fiat money claim it is unethical as it is not backed by physical commodities like gold, allowing central banks to print unlimited amounts, causing significant social harm.
Charles Adams from the UK-based Nickel Digital Asset Management believes that despite ethical considerations for both currencies, Bitcoin stands out due to its inherent inclusion, transparency, and immutability. He points out that fiat currency is also used in money laundering and other illicit activities, which poses ethical concerns.
In the realm of cybersecurity, it is estimated that cybercrime losses through traditional finance systems worldwide could reach $10.5 trillion annually by 2025. While Bitcoin transactions are pseudonymous, they are not entirely anonymous, allowing law enforcement to track funds stolen by criminals through sophisticated tools and techniques.
Although both currencies have drawbacks, Adams believes that Bitcoin’s transparency, immutability, and potential for positive social impact make it a promising alternative global currency. While fiat money can lead to economic inequality through hyperinflation, Bitcoin’s limited supply of 21 million makes it a more stable option, according to Satoshi Nakamoto’s white paper.
Matteo Greco from digital asset firm Fineqia argues that the ethical use of a currency depends on the individuals behind it, noting that Bitcoin miners are increasingly using renewable energy to address ethical concerns and environmental impacts.
Caroline Bowler, CEO of Australian crypto exchange BTC Markets, believes that currencies are neutral technologies, with their ethical standing determined by the moral compass of those controlling them. She emphasizes the importance of transparency, accountability, and responsibility in promoting ethical behavior in the financial system.
Sergey Sheleg, chief product officer of Web3 social platform Nicegram, suggests that the ethics of a currency depend on the measures and safeguards implemented by the platforms and institutions managing it. He advocates for leveraging the strengths of both digital and fiat currencies to create a more equitable and efficient financial ecosystem.
In conclusion, while both fiat money and cryptocurrencies have ethical concerns, the key lies in the responsible and transparent use of these currencies to benefit society as a whole. By fostering a culture of appropriate behavior and implementing safeguards, it is possible to create a financial system that serves the needs of all individuals, regardless of the currency used.