Digital currencies are becoming the way of transacting across the globe. This has become the biggest Central Banks headache. The idea of diversifying appears to be the reason why investing in crypto rather than fiat. Digital payment across the globe appears to take root with fiat based transactions taking the heat.
Asia takes the lead in digital payments. Half of the world’s leading exchanges are based in the region. These control half of the global transaction traffic, trade volume and liquidity. However, most of the crypto investments are due to speculation, portfolio building and as precautionary measures especially during the coronavirus pandemic.
Crypto uptake taking a toll on Central Banks
According to the CoinMarketCap portal, there are over 2,500 digital assets in the market. This is a clear indication that digital asset adoption is on the rise at the expense of central banks. Asset digitalization has opened new opportunities and banks are looking for way to remain competitive in the market.
Central banks however are lagging behind in real time processing giving crypto an upper hand. It is now possible to access instant payments courtesy of digital currencies. So, why are investors shunning the banking halls and turning to digital currencies?
Crypto Route to the Market Vs Central Banks
Crypto is targeting those with limited access to banks and this appears to have become the catch phrase. However, the banking over the counter transactions attracts higher fees compared to that of digital assets.
With a wide range of digital currencies to choose from, investors have the freedom to pick the right coin as their entry point into the digital money market. This is a shift from traditional fiat which is controlled by central authorities under the guise of legal tender.
Crypto offers the gateway to transact across the borders an area where banks have been fleecing their customers. With digital money payments, it now takes a few minutes to transact across the globe. This is a huge step in the remittance arena. Banks are known to takes hours or even days to transact across the borders.
It is about time Central Banks embraced crypto to makes transactions seamless. Going it alone will mean loss of business with investors exiting the fiat market to crypto. It is just a matter of time before traders exit the banking halls and turn to digital currencies.