Global business players have long been looking for an alternative global financial system. They believed that an alternative financial regime could set them free from the clutches of different governments and regulators for conducting their business activities freely. The arrival of cryptocurrencies like Bitcoin, Big Eyes Coin, and Ripple has changed the way businesses are conducted worldwide.
Global business players have long been looking for an alternative global financial system. They believed that an alternative financial regime could set them free from the clutches of different governments and regulators for conducting their business activities freely. The arrival of cryptocurrencies like Bitcoin, Big Eyes Coin, and Ripple has changed the way businesses are conducted worldwide.
Cryptocurrencies as an Alternative to Conventional Global Financial System
It is indeed the talk of the town that cryptocurrencies look all set to replace or coexist with the existing conventional financial systems that have failed to live up to expectations. Some proponents go on to hail them as the future of money, while others view them as a speculative bubble waiting to blow. Irrespective of what warring factions have to say, the truth of the matter is that cryptocurrencies have the potential to disrupt the traditional global financial system. In fact, cryptocurrencies like Ripple and Bitcoin have already started taking center stage in many economies.
Cryptocurrencies as an Alternative to Conventional Global Financial System
It is indeed the talk of the town that cryptocurrencies look all set to replace or coexist with the existing conventional financial systems that have failed to live up to expectations. Some proponents go on to hail them as the future of money, while others view them as a speculative bubble waiting to blow. Irrespective of what warring factions have to say, the truth of the matter is that cryptocurrencies have the potential to disrupt the traditional global financial system. In fact, cryptocurrencies like Ripple and Bitcoin have already started taking center stage in many economies.
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This article will discuss how cryptocurrencies can and will have a significant impact on the global economic climate.
Increased Financial Inclusion On the Cards
The biggest problem with the existing global financial regime is the fact it doesn’t appreciate financial inclusion at a greater level. On the contrary, financial inclusion has been the hallmark of cryptocurrencies ever since their arrival on the scene. This could be the best way for cryptocurrencies to disrupt the global financial system.
According to a recent study by Merchant Machine, a British research platform, the top five countries with the largest unbanked population are Morocco, Vietnam, Egypt, the Philippines, and Mexico. The study found that the regions with the highest percentage of financially excluded individuals are in the Middle East and Africa, where 50% of the population is unbanked. This is followed by South and Central America at 38%, Eastern Europe and the former Soviet republics at 33%, and the Asia Pacific region at 24%. These results are not surprising, as the highest concentration of unbanked individuals is typically found in developing or emerging economies.
This all can change rapidly by giving the crypto industry increased participation in the global financial system. The advent of cryptocurrencies like Big Eyes Coin has brought more innovation to the crypto world, which means the future might have better financial inclusion numbers at a greater scale.
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Decentralization is the Order of the Day
As we know, cryptocurrencies are decentralized and are not governed or regulated by a single entity like a government, central bank, or any other financial institution. This feature sets the crypto industry apart from traditional fiat currencies.
The absence of central regulations in cryptocurrencies encourages cross-border transactions in a much more efficient way because they are not subject to the same monetary regulations as traditional currencies.
Decentralized Finance (DeFi) is looked upon as the potential replacement to revolutionize the banking industry and even alter the entire financial system on a macroeconomic scale. Since 2020, DeFi has been experiencing rapid growth, with billions of dollars invested in the ecosystem. The growth is primarily driven by applications built on the Ethereum blockchain.
Ever since the arrival of Bitcoin in 2009, the world has started realizing the need for an alternative financial system that is decentralized and gives more freedom to its users. New cryptocurrencies like Ripple and Big Eyes Coin are studded with the latest technological advancements and that’s why they are regarded as the future of the global financial system.
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Cross-Border Transactions Made Easy
Global trade and commerce hold no value without cross-border transactions. Every country has to rely on many other countries to source several goods and products. This is where cross-border payments come into play. However, the existing traditional model of cross-border transactions is quite slow and costs a lot due to intermediaries, currency conversion fees, and many other related expenses.
New Innovative cryptocurrencies like Big Eyes Coin, Ripple, Dash, Verge, and many others can reduce the time and costs associated with cross-border transactions. They can do so by removing intermediaries and providing near-instant transactions with low transaction fees. This can lead to better, smoother, and increased global business interactions largely due to increased efficiency and speed of cross-border transactions, thereby reducing the friction associated with traditional methods.
Competition is the Spice of Business Climate
It has been observed in the last few years that the consistent rise of cryptocurrencies has brought about increased competition in the financial sector. As they say, competition is what drives economies on the path to growth. The increased competition has forced traditional banks and financial institutions to adapt accordingly to keep their place in the evolving global financial demographics.
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In the coming years, the increased competition will make stakeholders focus more on improving their services and lowering their costs for consumers. This will also lead to an increased innovation drive within the financial sector. For example, traditional banks have already started exploring the potential of blockchain technology, the underlying technology behind cryptocurrencies, to optimize their services for consumers.
Volatility Could be a Potential Threat
Volatility has long been annexed with cryptocurrencies. Whether it is a new entrant like Big Eyes Coin or established cryptocurrencies likeBitcoin and Ripple, no one can rule out the element of volatility. This could be a major challenge for the potential of cryptocurrencies to disrupt the global economic climate in the coming years.
The truth of the matter is that cryptocurrency values can fluctuate sharply, which always keeps it relevant to the unpredictability factor. It comes as the biggest excuse for businesses to accept cryptocurrencies as a form of payment. As long as cryptocurrencies become more stable, their widespread adoption as a medium of exchange may come into question by industry experts and stakeholders.
Key Takeaways
Cryptocurrencies like Bitcoin, Ethereum, and Ripple have already come a long way in creating a significant impact on the global economic climate. The advent of new entrants likeBig Eyes Coin, Dogecoin, and Solana has further upped the ante and increased pressure on traditional financial models to keep up with the changing demographics. They are bound to listen more to what their customers want and this will play a huge role in the future of the global financial climate.
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