How the central banks around the world are moving forward with crypto adoption

17. 4. 2020 | | Názory Bitcoin, kryptomena, cryptocurrency

The term cryptocurrency is being used a lot since the past 5-6 years due to the impact and the fear of missing out it has created in the market. However, the term cryptocurrency is being used incorrectly by many people. This term is better pronounced as crypto assets, because in the somewhat foreseeable future these would be used as assets to hold and store money or financial instruments.

Crypto assets vary from each other. A different project may run on a different platform, have completely different use, but the security and privacy with these coins is a level playing field with each offering the best to the best privacy and security to securely store crypto. This information has come as mixed news to the various central banks looking to innovate their methods as we step into the 2020’s with the rise in inflationary policies and recent events involving numerous crimes, many of which were related to money laundering, taking excess loans from banks and not paying it back.

Central banks are searching for a way to eliminate such evils in their respective countries, the hope of crypto adoption as money where it will replace its three main uses being a store of value, a unit of account and a medium of exchange. As mentioned that each crypto has its own respective platform for operations, each bank can set up its own country´s respective crypto and run it on that specific platform, which is worth the try as stock markets are hitting new highs. The scare in people for sudden drops after stocks attaining the all-time highs is slowly setting in, along with many countries making monetary injections in their economies, which in turn are only increasing inflation and reducing the general price level. This is giving rise to high prices, but not price value in many countries.

Many countries have high inflation at this point of time and to reduce inflation they need to search for ways also called as deflationary policies. The deflationary policies consist of mechanisms or ways to reduce the inflation in a given country, however since some past years these very policies are seeming to not work against the new factors involved in inflation for a country. There are though some central banks of some countries which are offering crypto currency as a way to reduce this soaring price levels with no value and further help in the payment mechanism. How the crypto currency helps is that this currency is not like the normal paper money we use in the system. It is rather a digital currency, which cannot be printed again for increasing supply the way the paper money is being printed today, which thereby constitutes to the increase in inflation.

But as the crypto asset market is very new to people, it will take more years for people, and more importantly the central banks, to trust it. But nevertheless series of testing is being done by various banks and people to include this in the day to day work of the common person, which can use this digital currency as simply as how they use the paper currency.

A big part of this is also availability of internet and movement towards a society, which is 100 % connected globally using internet or web based applications.

In general terms crypto adoption is some years away, but the work around it and for it to be done is in full swing with the best minds involved for bringing the world a change from the recessions, depressions, corporate illusions etc.

Foto: flickr.com

 

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