Currently, according to the trend of the world market, the emerging economies and the most advanced are leading the transfer of physical money to electronic money, as they present some macroeconomic difficulties, especially in Latin America, among them, obtain foreign currency (external restriction) and access international debt markets at reasonable prices. Therefore, they have been oriented to use electronic money through cryptocurrencies, based on blockchain technology.
An example of this is Norway, which is progressing dramatically to eliminate physical money completely, while several countries on the African continent, such as Kenya, have implemented electronic currency: 86% of the population already uses the cell phone to make payments and send money. Likewise, developing countries may resort to financing from the issuance of digital or cryptocurrency bonds backed by natural wealth.
Likewise, a consortium of Japanese banks led by financial group Mizuho is preparing to launch a new cryptocurrency, the J-coin, which will be fully convertible one by one in yen, to curb the dependence on cash in Japan, the highest among the developed countries. For its part, the Japanese entity Mitsubishi UFJ Financial Group (MUFG), the fourth largest in the world, wants to put its currency into circulation to make payments, which aims to be used in insurance and other services.
Also, the Central Bank of China is moving forward to launch a cryptocurrency of national origin. At the last meeting of the BRICs, the intention was announced to develop a digital currency to deal with the hegemony of the dollar in international payments and to speed up transactions between countries of that block (Brazil, Russia, India, China and South Africa), by therefore, they are beginning to create a “centralized” cryptocurrency, to be used as an international currency in international payments, and it is hoped that other countries or associations of countries will explore these possibilities to overcome the current limitations generated by the lack of coordination global monetary.
In turn, the Central Bank of Canada, proposed to create a cryptocurrency the ‘CADcoin’ for wholesale payments, supported by Canadian private banking and fintech companies. For its part, the Riksbank (Central Bank of Sweden) undertook a similar project with a virtual currency called the ‘eKrona’, for retail payments. Venezuela, Russia, England, Japan, China and many others recently announced the intention to create their own state cryptocurrencies, which are regulated.
It should be noted that cryptocurrencies are supported by the Blockchain technology, which is a shared database that functions as a book for the recording of purchase-sale transactions or any other transaction. In this way, they represent an alternative to raise fresh financing in the international market at low cost and, at the same time, serve as a financial instrument as a reserve currency to combat the flight of currencies to the dollar experienced by countries with high inflation. , therefore, the cryptocurrencies represent a computer innovation that is unleashing a wave of deregulation in the financial market.
In this order of ideas, cryptocurrencies represent an innovation, which has risks and opportunities. While the year 2018 looks encouraging for cryptoeconomics, which certainly continues to call the attention of the world to this revolution in the way in which they are acquired, products and services are sold, and also in how money is invested, it is necessary to foresee what It could happen in the international financial market if each country adopts its own cryptocurrency.
The most outstanding opportunity is the possibility for developing countries to resort to alternative financing systems, evasion of financial sanctions and to construct alternatives to the dollarization of international exchanges. We will arrive to that day, I think we are close.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.