Cryptocurrency is a term that became very popular a few years ago. The most prominent cryptocurrencies were Bitcoin, Ethereum, and Ripple. Bitcoin is still the most popular among them. Financial technology has seen vast growth in the previous decade. Some governments also started acknowledging Cryptocurrencies which leads us to the question of whether cryptocurrency can replace the actual national currencies.
When we ask how will it be implemented, the answer is the big companies making a transition into the use of blockchain and cryptocurrency. They will need to switch over from the traditional transaction methods to cryptocurrency. This will result in a cash crunch in the market. Also, the smaller companies will have to switch over as they need to maintain sync with the larger companies. Moreover, the fact that cryptocurrency is more transparent than the banking system will also weigh in its favor.
Cryptocurrencies also have a number of advantages. The fact that they cannot be easily manipulated, when compared to cash, is a great advantage. This is possible because cryptocurrencies are unregulated and decentralized in nature. They also can reduce the number of transactions taking place, which can reduce the overall cost of the business.
Apart from this, Cryptocurrencies also offer a few issues. As they form the digital currency, they require a digital medium to be implemented. As the current system comprises physical cash and currencies, it would be a challenge to switch over to a completely digitized form of currency across the globe. Secondly, people are not used to this form of currency. Educating people across the world about this new form of currency will take a massive effort. In some countries where illiteracy rates are high, the challenge is even greater.
Currently, governments across the world have still not approved the use of cryptocurrency. There are some countries that have approved it, but there are others who have expressed their concerns. Before we transition completely, we need to ensure that they are no flaws or loopholes which can cause problems. But certainly, cryptocurrency is a concept that can improve our current systems across the globe.