April 25, 2019 | Finance | No Comments
You must have certainly heard about digital currencies or what is known these days as cryptocurrencies. Bitcoins, Peercoins, and others are becoming more and more popular in the marketplace. Statista says that there are more than 1400 Bitcoin ATM all over the world. Cryptocurrency is also becoming a trend in many online deals for various industries.
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As we are entering another decade of this digital era, the financial industry will continue to revolutionize and make a huge change in the way we deal with our transactions and savings. We are almost in the era of cashless transactions as we embrace electronic and digital currencies.
Let’s take a look at the professionals’ point of view on the impact of digital currencies in the financial landscape in the years to come.
1. Inexpensive International Money Transfers
Digital currencies are a huge help for international money transfers. Many people can take advantage of bitcoins to receive or send money internationally. This bypasses expensive foreign exchange services of banks and other payment processors.
2. Better Security To Protect Digital Currencies
At present, it’s unfortunate that a few of us lost money in online transactions. Regardless of how small or big the amount of lost, financial technology will move to develop a stronger, more secure system to protect digital money and digital transactions.
3. Alternate Currency Reserve (In Volatile Economies)
Digital currency is relatively new thus it is less stable when compared to currencies such as the EUR and USD. However in several nations susceptible to inflation like Venezuela, their digital currency, bitcoin is in more ways stable compared to their own national currency. As a result, it’s no surprise that the use of Bitcoin in Venezuela has expanded almost seven times at the start of the year.
4. Efficiency – Faster, Easier, And More Secure Payments
Digital currencies make payments faster, simpler and even more secure. Because of efficiency when using digital currencies, this could impact how banking institutions work. Banks should commence using the concept of digital currency.
5. Market Transparency
Digital currencies lead to changing the conventional way of doing business. People who use digital currencies appreciate market transparency. The availability of public ledger creates transparency for all users. For this reason, there is a big chance that traditional transactions will go down while digital currencies will continue to rise and may take over the financial system.
6. Cryptocurrency Empowers The People
Cryptocurrencies will be less complicated due to lesser intermediation. With this new structure, the cryptocurrency code will set the rules. Bank personnel that took advantage of the system their own personal profit will eventually suffer a loss from their misdeeds. This revised financial structure eliminates the banking institutions as the middle person and gives more power and flexibility to the people.
7. Possibilities of One World Currency
We are moving towards global conglomerate that digital currency could become a currency for the entire world having the same value regardless of the country and removes expensive currency exchange rate as we know today.
Digital currencies as we know today serves a lot of benefit to many users. Although it is not yet widely accepted by the general public, the vision that most finance professionals are looking at could be possible. In fact, we have started way back then when financial technology had been introduced starting with credit cards and ATM machines.