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The potential impact of development of global digital currencies

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182 views

How would the development of global digital currencies affect traditional banking?

Digital Currency
Banking
Disruptive Innovation
Hassan Qudrat-Ullah
3 months ago

8 answers

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  1. Will bring faster and more market oriented competitors specially for countries with low government industry regulations.
  2. Will merge banking and retail/service/online industries in some products.
Sergey Belyaev
3 months ago
Much appreciated, dear Sergey. As a result, more unemployment is likely to happen in some countries? - Hassan 3 months ago
Don’t think so. Maybe even less unemployment: more tech companies, more support departments, more product depts, more IT and infrastructure positions, more startups, more addons and etc. - Sergey 3 months ago
Let us hope this is the case. But note that these development do take time and it is the transitory period where people struggle and some very severely. - Hassan 3 months ago
The same with every tech revolution. - Sergey 3 months ago
Hassan Qudrat-Ullah and Sergey Belyaev, AI-based are solutions are a big disruption. It takes time to retrain people or hire and train new people. - Bo 1 month ago
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Money serves three interrelated economic functions: it is a medium of exchange, a unit of account, and a store of value. There are many differences of opinion whether digital currencies would be able to stand up to these functions over time. The pro's are rapid global access and usage at high speed at low cost, however, it is threatened by volatility, scaleability, lack of ATM infrastructure and the 'dark' usage of money off the grid. My view is that it doesn't pose a current threat to normal retail banking, but it must be a big concern and revenue loss for the international banking payment system, SWIFT.

DIRK JONKER
3 months ago
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It does not look like digital currencies can be a threat to traditional banking system currently but if it were to cross the enormous hurdles it faces in terms of costs in manpower, system implementations, and government regulations it could manage to hit international banking systems and macroeconomic factors, many of which depends on comparison of economies through a common currency like the USD or Euro. 

Dr. Pramela Nair Panthallor
2 months ago
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Banks's profits will be impacted by this digital currency. Specifically, international tranfers will be come much easier and cheaper, a good for society.

Ali Qudrat
2 months ago
Ali Qudrat, well, first countries lasws should allow to use this digital currencies. I am not sure which countries have made it legally yet? - Tahir 25 days ago
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Chinese givernment is craking down, I think not abright future ahead for crytocurrecies.

Bo Chen
2 months ago
I am sure digital currency will be huge business in China, just give it a time. - Ali 2 months ago
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I am not sure, if such currencies will be accepted by the middel east banking and financial institutions any time soon..

Imane BOUKHATEM
2 months ago
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Crptocurrencies will eat up the dinner of traditional banks. It is going to happen soon, not only in North Amerca but also across the globe inlcuding the banks in the middle east.

Hassan Qudrat-Ullah
2 months ago
The banks in the middle east are also to adapt innovations, I guess. - Ali 2 months ago
No,I disagee. banks in Saudi Arabia use just mobile technology for all kinds of transctions while not so much in the US at present. - Imane 2 months ago
Hassan Qudrat-Ullah, Ali Qudrat, I respectfully don't agree with you. It will take yeasr before this digital currency can do a real dent to the traditional banking? - Bo 1 month ago
While Hassan Qudrat-Ullah and Ali Qudrat has a point, it will take years, before these currencies would be legal and have an impact on the profitability of traditional banking system as Bo Chen has alluded to. - Tahir 25 days ago
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Digital currencies are a fad.

Digital currencies is another way to do money laundering ina big way.

Digital currencies are for rich folks to make them richer.

Tahir Iqbal
1 month ago

Have some input?