INSUBCONTINENT EXCLUSIVE:
Cryptocurrency is going to change the future of the financial systemCryptocurrency can disrupt our lives in a way similar to how mobile
phones and the internet did
Initially, it was thought that mobile phones would be used only to compensate for the physical gap between people by allowing them to
communicate across thousands of kilometers
Similarly, the underlying technology for cryptocurrency is still evolving and not many are sure where it will lead to
However, one thing that appears certain is that the financial system will not be the same again.Some argue that cryptocurrency will
negatively impact the global economy, particularly the developing ones, as it removes the need for intermediaries like banks
They primarily refer to its newness and lack of trust among a large part of users
They also cite the extreme volatility crypto coins show regularly and the lack of regulating authority
Others say the lack of regulation makes it democratic
They also argue cryptocurrency supports financial inclusion in poor countries at an unmatched rate because of increased transparency during
transactions owing to its decentralised ledger system, low cost of the transaction, and its ability to beat inflation if someone decides to
hold it as a store of value.Irrespective of the arguments, El Salvador became the first country in the world in September 2021 to adopt
Bitcoin, the largest cryptocurrency, as a legal tender alongside the US dollar
It must have seen some merit in its usage
Also, many other countries are either developing or thinking of developing their own cryptocurrency, called the Central bank Digital
Currency (CBDC).Corporates largely like cryptocurrency as it reduces regulatory oversight and helps them do business
Most users find it easy to transact and trade
But the real issue may arise with the transition
How smoothly we make the transition will decide whether cryptocurrency could benefit the global economy or crash it
But it will surely change the existing system.
