How might cryptocurrencies reshape traditional finance, and what challenges could this transformation bring?

[Debashis]

Hi everyone. Was wondering how cryptocurrencies may play a role in reshaping the traditional finance. Will there be a time when only crypto will be used to make transactions and buy/sell goods & services? If that happens, what problems might we face?

 

[Riberet19]

Well, from my point of view, cryptocurrencies can help a lot in the financial inclusion of individuals, since they do not have as many restrictions as the traditional financial system, according to official data, global transactions have increased a lot since cryptocurrencies were born, and many of the people who use crypto are unbanked people, on the other hand, they are very good at sending money anywhere in the world, they are perfect for cross-border transactions.

Crypto can also be a tool in the future to combat prevailing inflation, especially those deflationary currencies. On the other hand, coins like Bitcoin that have a transparent, accessible and public blockchain could help fight embezzlement and corruption since we could all access transaction data and where public and other money would go.

 

[Nomad]

While I do not see traditional financial using cryptocurrency as it would be against the spirit of control over the market with fiat currency, I see things like blockchain and smart contracts coming to traditional finance. banks can make use of blockchain to store information and smart contracts to execute their contracts.

 

[Heatman]

The traditional financial sector have been at war with cryptocurrency for years because government haven't fully backed cryptocurrency. In my country, there's no bank transactions with cryptocurrency that's approved. Any transaction linked to cryptocurrency will block your account.