Cryptocurrency When financial systems like the central banks of various countries talk about the cash system and the money we use being at a crossroad, you know for sure that it is the time for change. Comments from Adrian Orr, Governor of Reserve Bank of New Zealand on the need to contemplate the optimal use of digital technology to modernize cash systems has served as a healthy reminder that the world has slowly and steadily started to mass recognize the existence of cryptocurrencies.
This can be considered similar to the evolution of the internet, something we now take as a given. Once a new and unknown technology, it has now become mainstream and something that is as necessary as electricity. Internet can be considered as the quintessential example of how technologies have the potential to transform daily lives of humans in a most profound way.
Orr announced on Tuesday the commencement of Central Bank
Digital Currency proof- of- concept design work by the Reserve Bank, which is undertaken taking in account the feedback received by the public during one recent consultation. While Aotearoa New Zealand need to ensure that cash is still an option, but with the changing times, changes are required to build an efficient, resilient system, Orr commented. Other banks all over the world have agreed with this and are doing similar works too. Mastercard and PayPal already offer cryptocurrency services. Even charities like Plunket, UNICEF, and ChildFund have started accepting cryptocurrency donations.
Similar to the internet that made information available digitally, cryptocurrency makes money and value go digital. Such a digitalization of money will have huge implications, the true potential of which will not be evident for many years yet.
Cryptocurrency provides decentralized
secured financial transfer which is independent of any bank or government. This means that any tailor in India will be able to send and receive payments as easily as a lawyer in New York. As commented upon by Adrien Gheur, founding partner of deep- tech focused venture capital firm Nuance Capital that these payments, whether be it of a domestic worker or a highly paid professional, can perform transactions without any high intermediary charges.
Traditional banking has accompanied us
for hundreds of years and hitherto was the only form of banking known. But we all know that the only constant in this world is change. Just like paper money replaced copper coins, digital currency is set to replace the money we know now. The only thing we can do is trust the process. And as with any other change, work will be required to improve the system. For example, making cryptocurrency a green industry. This will not happen overnight, but steady efforts will help us achieve the goals. The biggest challenge right now, is however, accepting the existence of this change. As any other new technology, there are many people who are still skeptic to use this form of currency. And there is only one solution to this problem: give these people time so they can get around their disliking of a new medium on their own pace.