The potential impact of development of global digital currencies


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

Digital Currency
Disruptive Innovation
Hassan Qudrat-Ullah
30 days ago

5 answers

  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
29 days ago
Much appreciated, dear Sergey. As a result, more unemployment is likely to happen in some countries? - Hassan 29 days 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 29 days 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 29 days ago
The same with every tech revolution. - Sergey 29 days ago

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.

22 days ago

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
14 days ago

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
11 days ago

Chinese givernment is craking down, I think not abright future ahead for crytocurrecies.

Bo Chen
3 hours ago

Have some input?