Date: Sep 18th, 2017
Media: The Economic Times
What happened?
The Bitcoin
growth could cause a risk in the stability of the international financial
system. Because of this, central banks are considering the issue of a digital
currency. In fact, there are many countries who have created their own
cryptocurrencies for internal use.
Whom and where it affects?
The
bitcoin, and in case that the central bank decides to issue its own digital
currency, could affect everyone worldwide because it would have financial,
economic and monetary policy repercussions. Specially in countries like Sweden
where the cash use is dwindling.
What sort of public or private institutions are
involved?
The public
institutions are the World Central Bank and the national
central banks all over the world.
As private
institution, one finds JPMorgan Chase & Co.
Why is it important for Banking and Finance?
Because
cryptocurrencies can change the world of Banking and Finance and, even in the
article it is already considered as a “revolution” in finance.
What do you think will be the consequences in
the foreseeable future?
Gradually,
cash is disappearing as a result of the growth of the electronic transactions.
So, the digital currencies are rising their presence in the international
financial system. As a consequence, we believe that central banks will finish
issuing digital currencies for keeping the control of the system.
Key words: Bitcoin,
Central Bank, Financial System, Digital Currency, Monetary Policy.
Bitcoin fever has gone through all kinds of phases in its short life, and now seems to be somewhat more settled after a change in value that seemed more like a roller coaster than a currency that aims to become the future of economic transactions Worldwide.
ReplyDeleteThe cryptocurrencies seem very linked to our future. Bitcoin may not be universally chosen, or it may not be more so than in some cases, but it is one of the bases of that concept, the block chain, which really opens the doors to other options that solve the possible limitations and problems (such as the thefts that have occurred) that are found in the implementation of bitcoins.
The high volatility of this cryptocurrency is probably the most striking to this day, but in bitcoin and in the concept it contains many hidden advantages. Too many for bitcoin not to have a noticeable impact, may be huge, in our future.