IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v18y2025i2p98-d1590294.html
   My bibliography  Save this article

Understanding the Future of Money: The Struggle Between Government Control and Decentralization

Author

Listed:
  • Jodi Tommerdahl

    (Department of Higher Education, Adult Learning and Organizational Studies, University of Texas at Arlington, Arlington, TX 76019, USA)

Abstract

This article offers a clear and approachable introduction to the evolving landscape of money and the frictions developing between traditional government control and decentralized finance (DeFi). Tailored for readers with a basic awareness of cryptocurrency but limited familiarity with its broader implications, the article demystifies DeFi by explaining its core concepts including blockchain, Centralized Bank Digital Currencies (CBDCs), and the historical role of government regulation of money through central banking. Against this backdrop, it examines the transformative potential of DeFi, emphasizing the growing tension between the centralized authority of governments and the decentralized ideals driving this new financial model. While governments seek to maintain stability and control, individuals increasingly gravitate toward the more affordable, efficient, and inclusive solutions promised by DeFi. Designed to empower readers with a better grasp of the forces shaping the future of finance, this article underscores the importance of understanding the delicate interplay between governmental oversight and decentralized innovation. As the digital economy expands, this dynamic struggle will influence not only economic policies but also personal financial choices and access to resources.

Suggested Citation

  • Jodi Tommerdahl, 2025. "Understanding the Future of Money: The Struggle Between Government Control and Decentralization," JRFM, MDPI, vol. 18(2), pages 1-17, February.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:98-:d:1590294
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/18/2/98/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/18/2/98/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andry Alamsyah & Gede Natha Wijaya Kusuma & Dian Puteri Ramadhani, 2024. "A Review on Decentralized Finance Ecosystems," Future Internet, MDPI, vol. 16(3), pages 1-29, February.
    2. Ozili, Peterson K, 2022. "Decentralized finance research and developments around the World," MPRA Paper 114338, University Library of Munich, Germany.
    3. Nikolaos Kapsoulis & Alexandros Psychas & Georgios Palaiokrassas & Achilleas Marinakis & Antonios Litke & Theodora Varvarigou, 2020. "Know Your Customer (KYC) Implementation with Smart Contracts on a Privacy-Oriented Decentralized Architecture," Future Internet, MDPI, vol. 12(2), pages 1-13, February.
    4. Richard N. Cooper, 1982. "The Gold Standard: Historical Facts and Future," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(1), pages 1-56.
    5. William Metcalfe, 2020. "Ethereum, Smart Contracts, DApps," Economics, Law, and Institutions in Asia Pacific, in: Makoto Yano & Chris Dai & Kenichi Masuda & Yoshio Kishimoto (ed.), Blockchain and Crypto Currency, chapter 0, pages 77-93, Springer.
    6. George C. Georgiou, 2020. "Cryptocurrency Challenges Sovereign Currency," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 21(1), pages 117-142, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria V. Sigova & Igor K. Klyuchnikov & Oleg I. Klyuchnikov, 2024. "Sustainability and Security of Green Finance from the Multi-agent Games Perspective," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 78-95, February.
    2. Bordo, Michael D., 1986. "Explorations in monetary history: A survey of the literature," Explorations in Economic History, Elsevier, vol. 23(4), pages 339-415, October.
    3. Charles van Marrewijk, 2004. "An introduction to international money and foreign exchange markets," International Finance 0410006, University Library of Munich, Germany.
    4. António Portugal Duarte & João Sousa Andrade, 2012. "How the Gold Standard functioned in Portugal: an analysis of some macroeconomic aspects," Applied Economics, Taylor & Francis Journals, vol. 44(5), pages 617-629, February.
    5. Paqué Karl-Heinz, 2015. "Die Rückkehr der Ideologien: Anmerkungen zur akademischen Kritik an der Politik aus Anlass von Barry Eichengreens Buch „Hall of Mirrors“," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 302-321, October.
    6. Rudiger Dornbusch & Jeffrey Frankel, 1988. "The Flexible Exchange Rate System: Experience and Alternatives," International Economic Association Series, in: Silvio Borner (ed.), International Finance and Trade in a Polycentric World, chapter 7, pages 151-208, Palgrave Macmillan.
    7. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    8. Maurice Obstfeld, 1995. "Intenational Currency Experience: New Lessons and Lessons Relearned," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 119-220.
    9. Michael D. Bordo & Anna J. Schwartz, 1994. "The Specie Standard as a Contingent Rule: Some Evidence for Core and Peripheral Countries, 1880-1990," NBER Working Papers 4860, National Bureau of Economic Research, Inc.
    10. Anthony Philip Thirlwall, 2012. "Balance of Payments Constrained Growth Models: History and Overview," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 1, pages 11-49, Palgrave Macmillan.
    11. Michael D. Bordo, 1993. "The gold standard, Bretton Woods and other monetary regimes: a historical appraisal," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 123-191.
    12. Elena Vladimirovna Rozhentsova, 2012. "Alternative International Currencies," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(194), pages 31-40, July - Se.
    13. Moritz Schularick & Thomas M. Steger, 2006. "Does Financial Integration Spur Economic Growth? New Evidence from the First Era of Financial Globalization," CER-ETH Economics working paper series 06/46, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    14. Cecilia Bermúdez & Carlos Dabús, 2015. "Let it float: new empirical evidence on de facto exchange rate regimes and growth in Latin America," Estudios Economicos, Universidad Nacional del Sur, Departamento de Economia, vol. 32(65), pages 3-18, july-dece.
    15. Ghaemi Asl, Mahdi & Ben Jabeur, Sami, 2024. "Tail connectedness of DeFi and CeFi with accessible banking pillars: Unveiling novel insights through wavelet and quantile cross-spectral coherence analyses," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    16. Volker Hofmann & Friedrich Sell, 1993. "Credibility, currency convertibility and the stabilisation of the rouble," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 28(1), pages 11-16, January.
    17. Md Monjurul Karim & Dong Hoang Van & Sangeen Khan & Qiang Qu & Yaroslav Kholodov, 2025. "AI Agents Meet Blockchain: A Survey on Secure and Scalable Collaboration for Multi-Agents," Future Internet, MDPI, vol. 17(2), pages 1-30, February.
    18. Graciela L. Kaminsky & Michael Klein, 1994. "The Real Exchange Rate and Fiscal Policy During the Gold Standard PeriodEvidence from the United States and Great Britain," NBER Working Papers 4809, National Bureau of Economic Research, Inc.
    19. Maurice Obstfeld & Alan M. Taylor, 2017. "International Monetary Relations: Taking Finance Seriously," Journal of Economic Perspectives, American Economic Association, vol. 31(3), pages 3-28, Summer.
    20. repec:ags:aaea22:335683 is not listed on IDEAS
    21. Marek A. Dąbrowski, 2015. "Did the Great Deflation of 1929–33 really have to happen? A reconsideration of the inevitability of the Great Deflation view," European Review of Economic History, European Historical Economics Society, vol. 19(3), pages 235-254.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:98-:d:1590294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.