During the covid-19 period, the stability of traditional currency was affected by inflation. After Covid-19, people started adopting blockchain technology for financial transactions. Individuals look for oversized cushions during hyperinflation to protect their purchasing power and wealth.
The response to cryptocurrency by central banks of many countries is lukewarm. Although some countries support using Bitcoins, others do not use them because of the high level of volatility. Also, controlling taxation and capital has become an essential topic for discussion. However, many banks want to develop a system to match blockchain payment speed. In some countries, the law made Bitcoin-related activities or transactions illegal. Hence, financial organizations like banks do not participate in any crypto transaction. On the other hand, some countries want to complement the financial system with cryptos instead of replacing them.
So how will cryptocurrency benefit the world’s economy? A peer-to-peer network supports the cryptocurrency blockchain system. Thus, unlike the fiat currency, the transactions are decentralized. Cryptocurrency users believe they should control their money fully instead of the traditional bank. Also, multinational companies usually take loans in domestic and foreign currencies. With the addition of cryptocurrencies, there will be a diversification of exposure. So, Bitcoins will provide access to different loan portfolios.
Moreover, there is secrecy since the sender and receiver’s information are kept in the blockchain. There are many security stages surrounding the report, which improves mining activity.
Entrepreneurs will be able to accept payment in more currencies rather than traditional currency. The distributed ledger technology backs the Bitcoin network and is digitized and automated. Thus, this system eliminates the risk of corruption and fraud; this is the biggest problem facing the fiat currency system. Neither individuals nor companies will fall victim to only theft or scammers.