The adoption of digital currencies and Blockchain is an innovation around the revolution in using money for transactions that can be performed worldwide. This change has prompted debates and discussions in several countries across the globe, with an emphasis on key financial giants like the UK and the US.
Lately, the US private sector has witnessed a gradual increase in acceptance of Bitcoin and other Cryptocurrencies; this is in sync with the growing awareness of their viability; nevertheless, public policies in both nations remain partially tucked in a state of ambiguity.
Here’s why Bitcoin adoption may be a positive sign for both nations.
E-currency and the Transformation of Monetary Exchange
According to the Federal Reserve Bank of San Francisco, only 19% of US dollar volume is transacted in cash, forming a meagre 6%. This statistic suggests an increased trend towards online transactions – something echoed in the UK financial sector as well. E-commerce is no longer just a fantasy for the future to strive for, but it has already become a reality of modern life. Thus, adding Blockchain-based innovations and tokenized payments appears useful and inevitable.
Nevertheless, Bitcoin is an innovative online payment system free from intermediaries and identification that ensures fast and secure purchases. Having dominant financial giants like JP Morgan and PayPal introduce tokenized payment solutions to the market, it is clear that the start of such trials is underway. Possibly, future legislation in the UK with the same approach to boosting fintech companies will be beneficial to both countries.
Technological Evolution of Money
Cash is no longer just a paper note or a coin that is circulated and used to transact. Today, money is turned into a technology. This financial commodity can be directly implemented to further develop and promote the digital economy. Basically, money is no longer just a physical concrete object but rather an object continually changing from one form to another as a technology.
Two of the most developed economies in the world – the UK and the US – have the most adequate technological environment for this change. Cross-border and tokenized payments are increasing in volume and monetary value, requiring rules and policies that encourage such advancements rather than restraining them.
Preserving Global Reserve Status
The fact that the US dollar is the world’s reserve currency is an advantage enjoys, although this is not a fixed position. Historical analysis alludes to the fact that reserve currencies shift over time; therefore, complacency is peculiar to none.
With global acceptance of digital currencies coming into realization, they stand as an opportunity for the US, and extension, the UK, to seize for development of their power and authority in the world of finance. Adopting Cryptocurrencies can also be a part of strengthening both the dollar and possibly the pound, among other global financial assets.
In Summary
Discussions on Cryptocurrency in the UK and the US have been going on for the longest time, with a focus on their regulation and the risks that may be associated with the use of these currencies.
However, digital currencies hold a unique prospect for both nations. Bitcoin and other Cryptocurrencies can become a tool to promote further financial development of the British and American economies with the uncertain stability of their currency. At this point, policymakers can and should align with the vicious movement of practical private contractors who see the digital future of money.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used for legal, tax, investment, financial or other advice.
