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

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

JRFM, 2025, vol. 18, issue 2, 1-17

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.

Keywords: decentralized finance; cryptocurrency; stablecoins (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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