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

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  • 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
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    References listed on IDEAS

    as
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    2. Raphael Auer & Bernhard Haslhofer & Stefan Kitzler & Pietro Saggese & Friedhelm Victor, 2024. "The technology of decentralized finance (DeFi)," Digital Finance, Springer, vol. 6(1), pages 55-95, March.
    3. 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.
    4. Ozili, Peterson K, 2022. "Decentralized finance research and developments around the World," MPRA Paper 114338, University Library of Munich, Germany.
    5. 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.
    6. 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.
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