This entry is part 7 of 7 in the series Two Minute Crypto

Please click the link to listen to the 20th episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome. Please consider dropping a like and or a review on iTunes or Podbean if you enjoy the podcast.



Two Minute Crypto

Welcome to Two-Minute Crypto, today’s episode examines the implications of widespread crypto adoption for ‘big government’. By big government I mean the inflated state bureaucracy the has sprung up around the globe irrespective of political ideology. From state to state it’s only a difference of degree – every jurisdiction whether intentionally or not now carries an enormous civil service. In some countries, these civil servants provide efficient services in others little to none but they, of necessity, exist everywhere.

Their days, however, are numbered. Crypto and blockchain whether in centralized or decentralized form will, in time, shrink the apparatus of government.  Tax collection would be infinitely easier with a state-backed cryptocurrency. Renewing your driver’s license would require no paperwork or administration to track it. Water usage and rates would be dynamically tracked and recorded onchain. On and on goes the list of open, trackable, non-human intervention tasks that will move to blockchain. Of course, a certain number of actual people will be needed to ‘oversee’ each strand but nothing like the numbers of today’s bureaucratic workforce. New jobs will arise especially in terms of software design, management and security but the balance will shift firmly to smaller numbers of people required to manage state functions.

This process will not be painless nor indeed level across the globe but it will be relentless. Doubtless, some states will cave to special interest groups and continue to pad-out their civil service but the high-tide of ‘big government’ has surely been reached. Tied to developments in AI, robotics and automation, the state as we know is about to become a whole lot smaller and hopefully much more efficient. How long before such lean mean micro governance states start to emerge – taking a wild guess by 2030.

Thanks for listening.

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  1. AD

    Do we need hundreds of politicians in one room to vote on mostly unimportant stuff?I doubt it. Even at the moment there must be a better way, no? In Romania a politician was caught watching porn during one of those meetings. He was watching porn! Many politicians sleep through those meetings which shows how much their contribution is needed there. Great article, thank you for sharing. I hope I’m around when these changes happen:)

  2. Luke Phoenix

    I have imagined that governments would have to eventually seek to build their own cryptos to stay relevant in the future. I hadn’t really thought out and added the implications that you discussed here. Nice thoughts!

  3. Workin2005

    I truly hope you’re right. Big centralized government can be traced to most major problems. When I’m more concerned about who is elected president rather than my own local Mayor, that’s a problem. People should be governed by local, elected peers…not out of touch bureaucrats living a thousand miles away. Excellent post @cryptosdecrypted.