What are the likely problems that cryptocurrency poses to the financial sector in the future?

[Nomad]

I do not thing crypto currency causes any problems to the financial sector because crypto currencies are after all valued in terms of fiat currency. 1 BTC does not make sense until it is valued in terms of USD

 

[tyrim88]

Governments and banks around the globe are either investigating or applying the blockchain innovation right now. The significance of this innovation is verifiable. Be that as it may, Blockchain has a few kinds and not every one of them appreciate completely decentralized status. Subsequently, the ramifications may be distinctive dependent on the area applying the innovation.

A few nations are pushing ahead to embrace this innovation. The methodologies can differ from either giving their own digital money or applying blockchain innovation, for example, nigeria (blockchain technique 2022).

However، the main inquiry is : how much will these digital currencies and their blockchain be like their current structure?.

The reason most nation are trying to come up with their own cryptocurency version is to be in leauge with the morden currency trend.But their own version will not be as unique as the blockchain version,because of the volatility.Theirs will be control by the state.

 

[jeff87]

The problem I see that Cryptocurrency poses to financial sectors of every Cryptocurrency-accepted country is that it fluctuates very faster than the real value of money. Investors in bitcoin have more to worry about than people with their money saved and invested with financial institution.

Post automatically merged: Jan 28, 2021

The problem I see that Cryptocurrency poses to financial sectors of every Cryptocurrency-accepted country is that it fluctuates very faster than the real value of money. Investors in bitcoin have more to worry about than people with their money saved and invested with financial institution.

Actually the volatility of cryptocurrency is very good. It's very good for investors. When the price of cryptocurrency is dropping that is the time to buy or invest. When the cryptocurrency price is going up that is giving a signal to the investors to sell in order to take profit.

 

[Ceeny007]

Inability to trace transaction could pose a threat,but the speed is a plus

Post automatically merged: Sep 4, 2021

Governments and banks around the globe are either investigating or applying the blockchain innovation right now. The significance of this innovation is verifiable. Be that as it may, Blockchain has a few kinds and not every one of them appreciate completely decentralized status. Subsequently, the ramifications may be distinctive dependent on the area applying the innovation.

A few nations are pushing ahead to embrace this innovation. The methodologies can differ from either giving their own digital money or applying blockchain innovation, for example, nigeria (blockchain technique 2022).

However، the main inquiry is : how much will these digital currencies and their blockchain be like their current structure?.

Speak for yourself but Nigeria is not in support of the use of crypto currency,the leaders are incompetent and they lack vision,they banned crypto currency only to bring their own crypto when we've not even sorted internet banking yet and the crypto currency they are introducing is not even on the block chain network

 

[tyrim88]

The only threat I think cryptocurrency poses to the economy of the world is that a lot of people would withdraw their funds from the bank and use it to purchase crypto and that will make the finance and economy crumble which will force the government to ban crypto currency from their nation ( I hope am on point)

This iss actually a major concern for any government to be worried about,because it will really cause a great imbalance in the economy of any nation.And also the issue if terrorism funding is another issue.

 

[McIrx]

The major problem cryptocurrency dependence poses to the financial sector of most countries is in its volatility and/or little to no control. We've seen massive price fluctuations in cryptocurrency recently. How do a government write a budget depending on a currency value they have no singular control over? They may wake up the next day to find out the market has dipped by 35% throwing everything into disarray.

 

[tyrim88]

The major problem cryptocurrency dependence poses to the financial sector of most countries is in its volatility and/or little to no control. We've seen massive price fluctuations in cryptocurrency recently. How do a government write a budget depending on a currency value they have no singular control over? They may wake up the next day to find out the market has dipped by 35% throwing everything into disarray.

One of the issues that most contries are very sceptical about the cryptocurency trading market is because the cannnot actually have a control over the financial economy if it is introduce,and the fluctuations can actually make any eonomy go into crisis.

 

[Elfinito]

When a greater percentage of the global economy turn to crypto currency for much of their transaction, then the normal money will suffer, thus many countries have looked into digital currency structure so their currencies wouldn't lose out totally

 

[Trexxxy]

Well concurrency provide an avenue to move illegal and stolen funds. Also I think the complete adoption of crypto may or may not hurt fiat currency.

 

[Thinker009]

Blockchain have vast importance ,it would increase the reliability of the financial sector ,since it could be used to track transaction and also increase the speed of transaction

 

[Bousine123]

Since crypto currency takes record of every transaction made I think it will be the best currency to be used in the future because there will be no issue of fraud. I think I the future government will also support the usage of the currency.

 

[btaliat]

Crypto is liable to ruin an economic of a state. What makes economy stable is the circulation of money among the citizens. And this is not really so in crypto as most crypto traders prefer to have their money saved in their wallet and hereby spend less in the economy which may reduce the inflow of money in the circulation

Post automatically merged: Nov 26, 2021

Crypto is liable to ruin an economic of a state. What makes economy stable is the circulation of money among the citizens. And this is not really so in crypto as most crypto traders prefer to have their money saved in their wallet and hereby spend less in the economy which may reduce the inflow of money in the circukstui

 

[greenie]

The likely problems that cryptocurrencies are causing the financial sector is the problem of transaction untraceability, this problem has made fraud to be the order of the day on so many cryptocurrency platforms. this issue is being resolved by so many of these to the currency platform by the introduction of Kyc we stand for know your customer.

 

[Kaffyfolla]

"There are issues of investor protection here. These are highly speculative assets," he said. "But they're not of the size that they would cause financial stability risk, and they're not connected deeply into the standing financial system."

 

[HayKay]

Well I don't think that the cryptocurrency market would pose any problems to the financial markets but my only fear is that the space is on the verge of self destruct - people keep trooping in so that they make profits and not build lasting, sustainable projects as intended.

 

[Sincerem]

The crypto currency and all it numerous coin available is termed as a high volatility market because of the boom and bust nature of this currency , with it's adoptions as a legal mode of transaction that's is trading the fiat currency.