Will cryptocurrencies be able to replace fiat money (dollars, euros, rubles...) and should central banks worry about it? "Unlikely," says the European Parliament's economic and monetary affairs committee. In his report on the subject experts point out that despite the fact that the work with digital coins is fast and transparent, it is not a threat to national currencies of different countries - the capitalization of even the most popular cryptocurrencies is not comparable with the volume of fiat money in circulation.
Cryptocurrencies have advantages
The benefits of the emergence and spread of digital coins is undoubtedly there - it became possible to work with finances, without considering the borders of states and their rules. This should eventually lead to a similar official protocol.
In addition, cryptocurrencies operate on the principle of real market demandwithout the real influence of government agencies, which shows the real picture of the financial world. And this has to be reckoned with.
Nevertheless, it is unlikely that cryptocurrencies can do much damage to traditional money, shake up established systems, or affect central banks. On a global scale, these are still very small assets, and it is unlikely that they will be allowed to grow.
You can't ignore
The only exceptions would be in troubled countries where the volatility of their own national currencies is high. In "rocky" moments, people may prefer to start paying in bitcoins. "Why not do it in stable dollars?" - the experts at Fortrader ponder, "Because cryptocurrencies are less visible?"
For now, central banks should look at the activity of digital currencies, consider their characteristics and reduce the risks associated with money laundering, tax evasion and misuse in criminal activities. And adjust to what cryptocurrencies today - part of the financial world that cannot be ignored.
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