The emergence of cryptocurrencies was harshly criticized by banks; now, it has become a significant business opportunity for the financial sector.
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Relevant aspects of the origin of bitcoin
Cryptocurrencies barely have a 10-year history, yet they have an ever-increasing number of users, making them a concern for regulators.
These have been the target of all kinds of speculation and, above all, the object of analysis by financial experts and curious people, not to forget the fundamental role of traditional banking.
No legal framework regulates crypto assets like Bitcoin and provides guarantees and protection similar to those applicable to financial products. But now you can hold Bitcoin on your Android phone.
Regulators have been warning of the volatility and complexity of cryptocurrencies over time, but the reality is expansion does not stop the world. Many are carried away by the rises and falls of its value.
Cryptocurrencies are remaking the global financial system
They are doing the same thing the internet did 30 years ago, which transformed how the world worked. Cryptocurrencies are going to convert the way fiat money works.
Despite this, from the legal point of view, cryptocurrencies are not, for now, considered a means of payment; they do not have the backing of a central bank or other public authorities.
Cryptocurrencies are not covered by a client protection mechanism such as the Deposit Guarantee Fund or the Investor Guarantee Fund, as various banking entities have warned worldwide.
However, many of today’s banking and financial institutions are betting on blockchain technology and cryptocurrencies to improve their system.
In addition, many of the newly created cryptocurrencies are also trying to enter the traditional financial market. BitcoinPrime offers you a more stable trading experience when the bitcoin market is volatile
Central banks could shake against bitcoin.
Actually, it is not surprising that banks are shaking hands with cryptocurrencies. However, the future of traditional banking will be nil if it does not evolve and adapt to the advancement of New Technologies.
It must be taken into account that there are more than 2,000 million people around the world who cannot access the services of a traditional bank.
The appearance of cryptocurrencies came to mitigate this situation. It has allowed them to participate on a global economic level. This has been a true revolution that includes the opportunity to move away from poverty.
Digital currencies have come to shake the foundations of a sector that lived anchored in the past.
The evolution of traditional banking has not walked in parallel with the needs that were being generated in customers.
Banks have tried to delay, if not avoid, an inevitable transformation process. However, even the Central Banks have not known how to pronounce themselves.
In any case, even if they are late, they have no choice but to reinvent themselves, and cryptocurrencies are only the tip of the iceberg against which they can collide.
Social networks and news increase volatility
Following the great boom in the use of cryptocurrencies, specifically Bitcoin, people have begun to ask themselves questions in this matter, both at the regional level of each country and at the global level.
This is even more increased when digital news and/or social networks have emphasized it.
Today’s interconnected world has brought significant changes, among which the management of finances and communications can be highlighted, allowing an easy and rapid internationalization of economies.
This has facilitated goods and services mobilization between nations, which forces the use of currencies regulated under the conditions established by the subjects participating in the exchange and the governmental authorities of each country.
This represents one of the main limitations regarding adopting cryptocurrencies as a means of payment and digital currency that allows negotiations and exchanges of goods and services in any corner of the world.
Those who control and manage traditional finance around the world at their disposal refuse to be part of a momentous change that may put aside how global finance is run.
Given the increase in the presence of Bitcoin, the world’s financial authorities must concisely and clearly regulate its use to protect the consumer and avoid possible actions of money laundering and terrorist financing.
Conclusion
Bitcoin is putting financial regulation to the test in many countries, forcing them to innovate and accept new systems and forms of payments different from those traditionally conceived.
