Central Banks Consent to Accept Cryptocurrencies?

Last Modified:13 May 2019 14:44:46
Central Banks Consent to Accept Cryptocurrencies?

Central banks usually don’t bear the risk and don’t have the tendency to take the risk. By risk, we mean investing in the fields wherein the chance of success is predictable. After cryptocurrencies entering the world’s money and economy market, many central banks and governments tried to ignore them, and some openly opposed these adventive cryptocurrencies; however, some countries adopt a newer approach than the others, and through understanding virtual world potentials and its cryptocurrencies, they have decided to look at the story of new technology more optimistically.

Pioneer Countries in Looking at Cryptocurrencies

Canada, England, Pakistan, and France are among the countries which have found a more appropriate understanding of the cryptocurrencies’ potential. These countries know well that cryptocurrencies cannot be removed from the world. In spite of forming the concept of digital and monetary transactions which cannot be seen and touched physically and physically, traditional methods of cryptocurrency trade cannot be thought of anymore. Since 2014, the central bank of England has formed an active team to study cryptocurrencies carefully. This team intends to investigate and study different aspects of performance and presence of cryptocurrencies in the world of communications and economy.

The measures taken by the above-mentioned countries were not only domestic, but there has also been some cooperation between them. For example, in November 2018, Canada, England, and Pakistan collaboratively attempted to prepare a report about the method of upgrading and performance of cryptocurrencies internationally. The attempts to more understand about cryptocurrencies and create suitable cooperation among pioneer countries are still going on.

Central Banks Measure in Accepting Cryptocurrencies

The banks all around the world will realize that cryptocurrencies are inevitable. Therefore, some attempts are observed here and there in the world in applying cryptocurrencies. For example, the central bank of Brazil is to design and organize a decentralized platform to do cryptocurrencies transactions. Sweden thinks about offering electronic Krona to the market, and South Africa is among proponents of cryptocurrencies in payment.

The applications of cryptocurrencies in the central banks and economic systems are numerous. For instance, Blockchain technology and cryptocurrencies can be employed in the money supply chain, foreign trades, anti-money laundering activities, information exchange and sharing them.

Cryptocurrencies Coming in the World of Banking

One of the other points which is important in entering the world of banking is accepting them by the customers and the people. The people should know what cryptocurrencies exactly do and how their performance and use are. In order for cryptocurrencies to be able to find more public popularity and development, knowledge and marketing is necessary; that is, in case the banks enter this new area, they should allocate some of their measures to marketing and branding. Given this condition being realized, cryptocurrencies can grow in the banks with an acceptable and desirable speed. If accepting the customers and understating cryptocurrencies do not take place correctly, the banks will face a significant challenge in using digital currencies.