Published on Sep 25, 2022

Cryptocurrency and it's Economical Impact in the World!

Cryptocurrency is a digital currency that is not tied to any country or central bank.

Bitcoin was the first cryptocurrency ever created.It was created in 2009 by a person or group of people using the pseudonym Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin can be used to purchase goods and services online as well as in some physical stores that accept it as payment. Bitcoin has been a popular form of payment for many years now and it is still one of the most valuable cryptocurrencies in the world. It is the most popular and valuable cryptocurrency in the world, with a market capitalization of over $200 billion dollars and over 16 million bitcoins in circulation. The first reported real-world financial transaction involving Bitcoin took place on May 22, 2010, when a Florida man negotiated 10,000 BTC for two pizzas from Papa John’s.

Cryptocurrencies are also known as digital assets or digital money. They are different from traditional currencies because they don't need a physical form like paper money, coins or metal coins to be used as a means of payment. Cryptocurrencies are instead stored digitally on computers and can be transferred without going through a financial institution (like a bank). This makes them independent from any government and free from regulation by central banks.

In meeting help during September 2021, the FOMC chairman had stated that FED is evaluating if Crytocurrency should be part of mainstream. It is considering creating a central bank digital currency (CBDC). However, not all countries were in support of Cryptocurrency due to its high volatile nature. Rather than making it mainstream, complementing it instead of replacing the existing financial system was being considered.

However, that being said, many Countries kickstarted their explorations and one can see a global map to track the research and progress on CBDC on https://cbdctracker.org/

19 of the G20 countries are exploring a CBDC, with 16 already in development or pilot stage. This includes South Korea, Japan, India, and Russia. Each has made significant progress over past six months. 10 countries have fully launched a digital currency, with China’s pilot set to expand in 2023. Jamaica is the latest country to launch a CBDC, the JAM-DEX. Nigeria, Africa’s largest economy, launched its CBDC in October 2021. Many countries are exploring alternative international payment systems. The trend is likely to accelerate following financial sanctions on Russia. There are 9 crossborder wholesale (bank-to-bank) CBDC tests and 3 cross-border retail projects. Of the G7 economies, the US and UK are the furthest behind on CBDC development. The European Central Bank has signaled it will aim to deliver a digital euro by the middle of the decade. (Source : https://www.atlanticcouncil.org/cbdctracker/ )

For entrepreneurs who have a reach beyond national audience, exchanging funds without hassle of exchange rates and international law will be made possible via Cryptocurrency. There are cryptocurrency companies which assist business owners in Africa to make financial transactions with European, American and Asian Companies. The idea is to create financial freedom through worldwide exchanges.

For small businesses, Cryptocurrency can benefit in many ways a. by providing low transaction fees compared to credit and debit card, b. the time required for transaction to happen is less and c. increases reach to international audience.

With a secure blockchain and ledger accounted system, cryptocurrencies reduce the risk of fraud and corruption. They give a lot of freedom to the common man as they can't be manipulated by people or companies or government.

Future is definitely looking promising with this new secure financial system. Keep a watch on its progress!

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