Global Economy would be impacted negatively due to cryptocurrency according to some but as per others it would change for making the economy better. As cryptocurrency also evolves digital shift in economy by making trading online so it could also effect our life’s in negative way too as smart phones and Internet have done. Cause earlier it was thought that mobile phones would be used just for filling physical gap between people by giving them privilege of communicating round the globe in any corner with anyone. As it came into being, it not just impacted the means of communication but also changed human life as such from banking to browsing. In the same way, we never know where cryptocurrency is going to take us on the contrary of the latest technology being used by it for trading. One thing is sure that financial system would change.
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Viewpoints Different Economies About Impact Of Cryptocurrency
To this, the developing economies have the say that cryptocurrency is going to impact global economy in negative way as the intermediaries are removed from between and direct transactions are done. This is thought off as lack of trust amongst maximum users cause of it being new. Few more reasons for lack of trust is:
• Crypto coins volatile nature.
• Regulatory Framework missing.
On the other hand some are of the view that missing regulatory framework makes economy democratic. Even financial involvement in poor countries at a rate which can’t be matched due to higher rate of transparency with ongoing transactions based on decentralised ledger system. The lower cost of transaction and potentially of beating inflation in case of thinking to store value.
Central Bank Digital Currency
As first case of adoption of Bitcoin, EI Salvador was the first country round the globe in September 2021 for adopting Bitcoin, thereby making it legal tender alongwith US Dollar. So, it’s clear that the country would have seen some benefits with the use of Bitcoin, that’s the reason why it gave importance to its adaption. In addition to this many countries are eagerly moving towards development of their own cryptocurrency, being popularly recognised as Central Bank’s Digital Currency (CBDC).
CRUX
Many business organisations like cryptocurrency due to its less regulatory value, thereby aiding in performing business effectively. Many users also ought to transact and trade cause of it’s user friendly framework. But as everything has its own advantages and disadvantages attached with it, similarly the basic drawback with could be transition.
Therefore at last, the rate at which slowly or rapidly newer technology is adopted would decide how effective trading would be and the rate at which transition is executed smoothly would help in deciding that cryptocurrency is going to benefit or damage the global economy. But any ways this would surely lead to bring change in the current system.
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