The trade tormentor between US and China, NAFTA developments and Trump’s aggressive administration have been the major driving forces for the global market sentiments.
The indirect effect of trade wars is the loss of confidence, resulting in corporate and household retrenchment that eventually leads to generalized tightening in financial conditions; we particularly see EMFX sell off and their vulnerabilities.
Amid all these scenarios, cryptocurrencies have been a stimulating medium of exchange in the recent past, that will have a transformative impact in EMFX markets. Distinctive functionalities for crypto-space, ranging from services, such as, remittances and digital payments, to loans and smart contracts likely to lead in improved trade finance business.
On the other hand, as the Turkish currency continues to tumble and makes record lows day-by-day, mainstream movement towards people investing in digital assets can be expected.
While the trade wars and economic crises around the world have impacted the public’s confidence in fiat currency, which could lead to an increased interest in crypto. In Turkey, where trading in crypto is relatively easy compared to other jurisdictions, this seems to be a very likely scenario.
Elsewhere, we like focusing on the Asian vol space, which, despite being at the epicenter of the trade war tensions between US and China, offers attractive pricing for entering tactical plays. We highlight two opportunities, one being more defensive in nature and the other more tilted towards positive Carry generation.
The member of Venezuela’s National Constituent Assembly, Mr. Hermann Escarra, had informed in an interview with Reuters, in the past, about the assembly’s ideas for cryptocurrencies.
Venezuelan president, Nikolas Maduro had clarified that the government would back each petro with an actual barrel of Venezuelan oil in order to allure credible investors, now add other minerals as backing, such as: Gold, Diamonds, that is, it is a crypto, very attractive to investors the nation needs financial resources in order to avoid the economic sanctions imposed by the US, time will tell if it is possible to convince the enthusiasts.
While a senior government official from a board created by Indian finance ministry admitted that there have been ideas of creating India’s own government-backed digital coin.
Well, overall, such cryptocurrency sentiments in emerging markets creates an idea as to which cryptocurrency exchanges would trade which currency pairings. It also resolves the puzzle where clients at the Nigerian diaspora can exchange their Bitcoins or Litecoins into naira, and vice versa. This facility eases and improves overseas trade transactions. For an instance, the client would be enabled to route money home in a more efficient method; alternatively, client can utilise cryptocurrency to make payment of the salaries of employees or contractors.
Companies seek new alternatives offered by blockchain-bitcoin technology, the traditional financial system no longer offers security for nations that choose new forms of payment in transactions, it is possible that in a short time, banks will be seen as have been working is no longer possible to accept, time will tell if it is possible, meanwhile, users and employers will continue to make their payment process having a possible alternative. It waits for new ads.
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.