Although it is a matter that will not happen overnight since the role of the bank cannot be underestimated, neither in the daily lives of people, much less in the operation of governments and large companies
The financial formation is the new Bitcoin scenario
It is a fact that the mere appearance, function, diffusion, and growth of a deinstitutionalized and unbanked cryptocurrency marks a milestone and, in turn, a new scenario that cannot and should not be ignored
The high risk of tax evasion given the anonymity characteristics of the payment system coupled with the risk of loss of income due to the high fluctuation in the price of Bitcoin is what makes future investors turn away
Bitcoin is taken as a central issue due to the disclosure and growth that it has had since its creation, mainly due to the general distrust in the financial system and the government’s handling of fiat money and other economic issues
It is a new decentralized instrument, which is based on a robust security system, Blockchain, which arises from the need to provide security for transactions in Bitcoins
There is talk of alliances between financial institutions and cryptocurrency platforms
Are cryptocurrencies the new digital economy? They were created as an alternative to traditional currencies to be used in the international market
Central banks will play a key role in defining the new macro-financial environment, what digital money is adopted, and to what extent it affects the financial system as we know it
The growth of bitcoin
Bitcoin was born as a strategic response to the general loss of international confidence in private and public regulation models regarding the market and the economy.
As a product of mortgage and later financial crisis originated in the North American banking system during the first decade of this century, and that would hit its bottom in 2008 due to the media and public exposure that such a debacle meant
This financial innovation appears on the scene as an unregulated but safe offering of currency, not only against criminal actions but particularly against actions by banks and governments. Now, you can buy Bitcoin with an e-gift card of your liking.
The growth of Bitcoin, which in turn made Blockchain visible and extrapolated as one of the most critical technologies that we currently have framed in the so-called Fourth Industrial Revolution, has not only meant a disruption in terms of traditional concepts of economic and financial functioning of our markets.
But also an acceleration in the transformation in understanding our markets and governance models, this disruptive nature has generated fascinating resistance from various government sectors.
That they would account for a resistance to change, not only covered by the bureaucratic pathology functioning of the State but also in the fears transmitted by the traditional defenders of the economy who see in Bitcoin a threat to their existence
The business world includes financial education
In addition, given the rapid and continuous change that financial markets face given the need to adapt to globalization and different technological advances, this new cryptocurrency has a high chance of being present, being of great importance its compliance by the business world.
Major international institutions are proposing a series of recommendations for incorporating cryptocurrencies into global finance.
Some of the suggestions include:
• The institutions of the countries must control and monitor with outstanding equity the exchange operations that are carried out with digital currencies, managing to detect any illegal operation that indicates money laundering or cyber hacking that breaks security protocols.
• The Exchange or the companies in charge of controlling the operations with the digital currencies must have the equipment and systems that give the necessary security to the users’ information and operations.
• Users of digital currencies must be aware that the operations carried out through the Blockchain must follow transparency parameters so that the operations are legal
• All information must be processed under the necessary auditing standards.
• In general terms, they suggest that the digital currency market and the economy they suggest should have regulations similar to those that apply to financial entities that exist in the traditional economy.
As in all levels of knowledge, education plays a fundamental role, so the world of cryptocurrencies and bitcoin comes together to promote financial education.
With the sole objective, all users who wish to venture into such an attractive environment must be educated and thus handle the technical terminologies surrounding the Blockchain as a digital financial platform.