The effect of cryptocurrency on fiat currency

[Ebuka Stephen]

Well I think crypto currencies has helped grow country economy seeing many countries now use crypto in paying workers.crypto can help im developing countries by reduction of cross borders payment ,transactions fees and so on

 

[Kamon c4]

Well I think crypto currencies has helped grow country economy seeing many countries now use crypto in paying workers.crypto can help im developing countries by reduction of cross borders payment ,transactions fees and so on

Obviously cryptocurrency can help country’s economy. It’s fast and very easy. Moreover personal details aren’t required. The negative effect it may have is when traders divert their attention to cryptocurrency leaving the forex market with less traders I believe This will have negative impact on some country’s currency and economy

Post automatically merged: Jan 18, 2021

In many countries, especially in developing countries, the excess circulation of Crypto can affect the financial stability of a country so that fiat money is also disrupted, because there is an interaction between virtual currencies and the real economy. For countries that prohibit Bitcoin and cryptocurrency, retail and institutional investors will buy cryptocurrency in other countries, so that some of their fiat money supply will move to another country, so that it will cause the country to experience financial circulation disruption.

This best explain how cryptocurrency market affects the fiat currency. In cases where foreign currency is used to buy crypto, invested and converted to a local currency I beleive that’ll help improve the strength of the local currency.

 

[Chris]

I don't think it cryptocurrency has an effect on fist currency.
Cryptocurrency is a commodity or collectible (i.e. it’s not really a currency at all) whereas fiat is a legally created and reinforced tool for trading / exchanging value. Fiat currency is one of the fundamental structures / technologies of modern societies.

 

[Jomarie05]

Well, bitcoin and fiat money are two different currency. Both are important at their end. I've never seen someone who buy tomatoes in the general market and pay with bitcoin. Likewise, no one has ever pay fiat currency in exchange for an online transaction. Both have their uses and where they are applicable.

 

[abubakar3141]

We know that there is inflation or negligence in the currency centers, and the crocoder is not such a problem, but the transaction is allowed to currency exchange and corruption and filter currencies. This means that the CruiscarfiFiFi can be broken the supply demand in the currency market

 

[GIFTMICHAEL]

Cryptocurrency has really shape the world economy very well by making it easy to trade without carrying visible cash.
The introduction of the cryptocurrency has turned the minds of investors to the reality of knowing that by creating a Bitcoin wallet they can use less of there country currency.
Soon most of the country currency will no longer have value as much because is no longer the means people are using to make payment online.

 

[adazeez1995]

The world is Transforming from physical paper money to digital money. Countries around the world has approved and legitimised the use of crytocurrencies. You just have to use this opportunity to own your own digital assets before the elites take all, leaving you to struggle for them. It is either you get it free or buy it cheap now, or you wait to buy it high from the elites in future.

 

[tuna89]

Just few explanations, i have noticed that every government spends a lot in the printing of fiat currencies and this is not ideal at all, to reduce this the government have to license some of the crypto by integrating them into the Central banks so as to be able to monitor the transactions, by this there would be less pressure on the fiat money.

 

[Chumzy]

Crypto Currencies have taken a lot of pressure from the fiat currency. It has been the fiat currency that government has used to control the economy. Today the emergence of crypto currencies have taken a lot of powers from the government.

 

[hani20980]

Many peoples today become so interested about bitcoin and cryptocurrecies and i think crypto
will replace fiat currencies in the future and maybe most of countries will create their own crypto currencies

 

[Alexandoy]

First off, let me just correct the meaning of Fiat because it is a currency with no backing by the government. The dollar is legal tender and not fiat. Anyway, the crypto currency is a commodity and not a currency at all so how can it affect the legitimate currency of the country? It is just like gold or silver that suddenly so many are trading. The legal tender currency is affected by the economy as a whole unless the commodity has a direct effect like oil or food products.

 

[arrain3786]

For the time being, no cryptocurrency has effectively overtaken fiat in any part of the world. In the end, it may be payment apps like SPEDN which most dramatically open up cryptocurrency payments to real-world applications

 

[Atif3786]

For the time being, no cryptocurrency has effectively overtaken fiat in any part of the world. In the end, it may be payment apps like SPEDN which most dramatically open up cryptocurrency payments to real-world applications.may be in future only e-currencies will be used

 

[Zamaney]

cryptocurrency use is that it's completely decentralized, so trading can be done freely across borders. The use of technology will facilitate a financial revolution that will leave everyone more financially connected, empowered and enabled.

 

[Profwriter]

The future is gravitating towards the use of crypto coins, over the years monies have underwent some evolution. In Africa, cowrit's was once used as currency.

 

[Cybersec]

From my ends here, Bitcoin Is affecting the economy in a very positive way, in that it's now a major way most people receive payment in the country from abroad thereby bringing in the much needed foreign exchange that has been so lacking for a while now.

 

[Kamon c4]

I don't think it cryptocurrency has an effect on fist currency.
Cryptocurrency is a commodity or collectible (i.e. it’s not really a currency at all) whereas fiat is a legally created and reinforced tool for trading / exchanging value. Fiat currency is one of the fundamental structures / technologies of modern societies.

I beleive the increase in usage of cryptocurrency will affect fiat currencies around the world. For example the world bank stated that if people stop saving in the bank it’ll have a major effect on the world economy and may even lead to another global economic meltdown. With the availability of stable coins, this provides the opportunity to save money in your cryptocurrency wallet without making use of bank I still beleive there’re other ways cryptocurrency May have effect on fiat currencies

 

[ahmedo24]

I don't think it will have much effect on fiat currencies but there won't be money available in the banks as they used to be for banks to trade and make money but the fact is that people will still Exchange Crypto currencies to fiat currencies .

 

[Felixko]

Cryptocurrency both are influencing the world economy under the ledger technology, where as traditional fiat currency plays vital role in socio economy followed by conventional printing method

 

[tyrim88]

The cryptocurency introduction has had an effect on the economy in the sence that control of the crypto curency cannot be controled by the government and it will make the government go short of cash when they want to get money out of circulation for development.But on the other hand the inflow of foreign exchange will make the economy be push up and cash will be in circulation.