Cryptocurrencies have benefitted many people and companies worldwide, but to a greater extent in countries considered emerging because most remittances are being sent through this means. For more information please visit our website: http://bitalpha-ai.org
Just as there are many in favor, a group of financial organizations worldwide has made their position known, highlighting that cryptocurrencies represent unstable financial assets that represent risks and extreme volatility.
Recently, the United Nations Organization, in its last conference, pronounced itself through a set of reports where they established the possible risks to which it is exposed when using digital currencies, as well as the excessive mobilization of significant capitals that even they are part of the nation’s financial system.
Instability and risk could be controlled.
The main aspects for which the citizens of emerging countries are using cryptocurrencies as financial instruments and, in turn, as a digital payment system mainly include remittances and protection against excessive inflation that usually occurs in these countries.
The recent movements that have been observed in the digital financial market have alarmed not only investors but also financial institutions and governments around the world since the general outlook for cryptocurrencies has not been positive at all.
The losses the crypto market has left during the first half of the year have been millions. Still, many analysts usually indicate that these privacy risks, since they are directly linked to the transactions executed by the users of the digital market, could be solved if traditional banking intervened.
The intention of involving financial entities would transform the decentralized properties of this market into public and centralized operations.
It is interesting to evaluate the various market positions from the perspective of users, including financial entities, because if both markets merge, then actions could be taken in the event of a possible collapse of the digital financial market.
The use of cryptocurrencies, mostly in developing countries, is driven by the need to generate any income that allows them to increase their quality of life. But unfortunately, they are also usually the perfect channel for illegal transactions.
The control of the cryptocurrency market is mainly based on stopping this type of operation and establishing specific measures that allow governments to take advantage of cryptographic investments.
It would imply massive movements that could even generalize digital payments and replace traditional currencies, leaving aspects related to national sovereignty in the background.
Increase in the use of cryptocurrencies
The exchange platforms and the digital financial market play a significant role in diversifying financial investments and their possible adoption as an alternative monetary system.
The primary function of these platforms is to operate as a kind of clearing house through which transactions are verified and converted into cryptocurrencies or even Fiat currencies, as the user considers.
Over 500 crypto market exchanges have come to execute accumulated operations for a sum greater than 600. One billion dollars daily, managing to compare to the processes that are performed on the NASDAQ.
The cryptocurrency market has increased significantly, and the market capitalization of the financial instruments that make it up has shown it, reaching the level of operations in the digital financial market.
The IMF’s biggest concern
For the International Monetary Fund (IMF), it is vital to evaluate all possible considerations when evaluating the risk of using cryptocurrencies.
His biggest fear centers around Bitcoin since it is considered a decentralized digital currency that can be bought, sold, or exchanged without the intervention of an intermediary.
The vision is that countries in a forward position and need to create efficient payment systems could make the digital currencies of each country and there if be able to offer secure transactions to users of the digital financial market.
The use of cryptocurrencies in emerging countries means that legal tender currencies and national resources are used in a lesser proportion; what is desired is to boost economies beyond the particular interests of investors.
Conclusion
Taking action to improve the financial market of emerging countries with the implementation of digital payment systems, if not done on time, could represent a higher cost for governments. For more information, go to Bitcoin-Prime trading system.
Be the first to comment