The Future Of Digital Currencies
– Katharine Wooller, Managing Director, Dacxi
In a world in which technology and digitisation strive to make life and business more efficient and cost effective, the eventual dominance and ubiquity of decentralised finance, powered by cryptocurrencies, is inevitable.
The fact is, every day, global businesses (and governments alike) haemorrhage millions of pounds, dollars, euro etc. to foreign exchange premia, adding significantly to eventual cost of sales and increased prices to consumers. These premia are harvested by foreign exchange dealers who have no value add to the sales process. In effect, foreign exchange should be seen as a ‘tax’ on money changing hands. Particularly in underdeveloped economies and the unbanked, this strangles much needed economic stimulus.
With decentralised finance, through cryptocurrencies, these costs can be dramatically reduced. Whilst this means international corporations stand to add significant cash back to their bottom lines, the man and woman on holiday in foreign climes will save money too. Take crypto to its logical extreme and it offers a fairer more democratic way of sharing wealth.
Katharine Wooller
Many government pundits and industry experts’ rail against ‘DeFi’. In doing so they are conveniently ignoring the fact that we already have a great exemplar of decentralised finance in Europe, where initially 12 countries adopted the euro as a cross border currency in 2002. This number has since grown, as has the economic strength of the union. Of course, there are those who hate change, who funnily enough, often have a vested interest in the status quo.
Thus, if we take the euro as an example, we can see that adoption of DeFi takes time. The European Economic Community was established in 1957. Planning and delivery of the single currency took over 10 years. Given the pace of change in the digital world, we could expect any adoption and integration of crypto as a global transactional currency to be much quicker, although the scope of the integration is much greater.
Read the full article: https://www.financederivative.com/the-future-of-digital-currencies/
