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Rachel Welch

11 November 2022 151 Read Resources

How Can Crypto Impact The Economys Future?

The rise of crypto currencies is a global phenomenon. Although its impact on developing countries is largely unknown, it could be a significant driver of economic growth. This is because cryptocurrencies can facilitate financial inclusion by reducing transaction costs and time. They can also act as a kind of bank account and provide people with a means to save and conduct daily transactions. In this way, crypto currencies have the potential to transform economies, but only if they get it right.

Central banks are reacting lukewarmly to the emergence of cryptos. While some countries are supportive of the idea, others are cautious due to extreme volatility and concerns about taxation. However, most major banks are looking forward to developing a central bank digital currency (CBDC), which can match the modern financial system and speed up payment processes. The Federal Reserve is also considering the use of cryptos for central bank purposes and has adopted a scan-and-learn policy.