Cryptocurrency

How will cryptocurrency change the existing global economic order?

Cryptocurrency will change the future of the financial system

Cryptocurrency can disrupt our lives just like mobile phones and the internet. Initially, it was believed that cell phones would only be used to bridge the physical gap between people by allowing them to communicate over thousands of miles. But as it has evolved, it has transformed not only the way we communicate, but also all aspects of human life, from banking to shipping. Likewise, the underlying technology of cryptocurrency is still evolving and few people know where it will lead. However, one thing seems certain is that the financial system will not be the same.

Some argue that cryptocurrency will have a negative impact on the global economy, especially developing countries, as it removes the need for intermediaries like banks. They mainly refer to its novelty and the lack of confidence of a large part of the users. They also cite the extreme volatility of crypto coins regularly and the lack of regulatory authority. Others say the lack of regulation makes it democratic. They also argue that cryptocurrency supports financial inclusion in poor countries at an unmatched rate due to increased transparency in transactions due to its decentralized ledger system, low transaction cost and capacity. to beat inflation if someone decides to keep it as a store of value. .

Regardless of the arguments, El Salvador became the first country in the world in September 2021 to adopt Bitcoin, the largest cryptocurrency, as legal tender alongside the US dollar. He must have seen some merit in its use. In addition, many other countries are developing or are planning to develop their own cryptocurrency, called Central Bank Digital Currency (CBDC).

Companies widely love cryptocurrency because it reduces regulatory oversight and helps them do business. Most people find it easy to trade and trade. But the real problem can arise with the transition. How quickly – or slowly – we are able to adapt to this new technology-driven way of trading. The smoothness of the transition will determine whether cryptocurrency could benefit or fail the global economy. But that will surely change the existing system.

.

Companies widely love cryptocurrency because it reduces regulatory oversight and helps them do business. Most people find it easy to trade and trade. But the real problem can arise with the transition. How quickly – or slowly – we are able to adapt to this new technology-driven way of trading. The smoothness of the transition will determine whether cryptocurrency could benefit or fail the global economy. But that will surely change the existing system.

Source: https://www.uktimenews.com/how-will-cryptocurrency-change-the-existing-global-economic-order/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button