Foreign Exchange and Crypto
This article is discussing the relationship between currencies such as the USD, EUR, GBP and Crypto.
There is no doubt that Crypto has changed our lives. Nowadays people are checking the value of Bitcoin on sites such as CoinMarketCap mainly against the US Dollar.
But what about other currencies?
Does anyone care about the EUR/USD or other pairs?
Foreign Exchange is not dead. People still exchange money at forex shops, airports and more. The EUR/USD foreign exchange matters to many businesses, governments and more.
The belief that Crypto is taking over these currencies and becoming the new norm needs to remain on hold, at least for now (April 2024).
Are we going to see a new digital Euro, Dollar and more?
There are plans by many countries to issue digital currencies. There won’t be the same as USDT (Tether) or EURC (Euro Coin) but different digital currencies the governments themselves develop. In the Middle East, the startup nation Israel is planning to become the first country who does that in the world. Their current currency, the Shekel is worth $0.27. You can see more on it on usdils.com and stay updated with the latest news around that topic.
Digital Currency - No Reversals?
One of the main benefits of a digital currency is having irreversible payments. As of today (April 2024) the banks have to recall and chargeback fraudulent transfers. This adds more bureaucracy not only to the banks but to customers as well, who sometimes have to verify their identity and prove to the bank they are who they say they are. This could be via a phone call to a call centre and verification over the phone or even in a branch.
The digital coin is like crypto, once you send it - it’s gone. It has its own benefits such as peace of mind between a seller and a buyer knowing the transfer is safe, but there is less protection to buyers in this format.
Conclusion: Is it going to happen?
It’s still too early to say when this will happen and how it will happen, but there is no doubt the banks would be happy to use a payment solution that cuts and reduces the bureaucracy that is involved with the current traditional payment system.
