Cryptocurrencies are an innovative means of payment far removed from the conventional financial market. If it were up to politics and conventional banks, the blockchain would not establish itself and would not be seen as a forward-looking factor. Yet the real world is revealing a different trend. More and more people are turning away from traditional banks and the financial system of the state. The abandonment and the associated flight into cryptocurrency traded by means of blockchain can be attributed to various reasons. Both the abolition of cash, the depreciation of state debt currencies, and the tense political and economic situation in a global perspective are all factors that lead us to focus on contemporary and forward-looking perspectives. This proves that blockchain technology is not a cryptic utopia, but an alternative to conventional transfer options.
The advantages of blockchain technology at a glance
The world is global. Trade and transactions in real time across national borders are no longer only a relevant issue for commercial operations. To take advantage of globalization and digitization, a blockchain-based cryptocurrency is a good solution. Even now, a clear trend can be seen when looking at the blockchain and its opportunities for the financial industry of the future. Currently, payment or investments in cryptocurrencies can still be described as a “niche”. However, it can’t be ignored that the market is booming and pointing to new opportunities. While blockchain technology has met with political and governmental acceptance in other countries, Europe still has a long way to go. The blockchain is much more than a platform for trading and paying with cryptocurrencies. In general, this technology is almost “unhackable” due to its decentralized data structure and the encryption coupled with it, and is therefore a thoroughly forward-looking option. In other countries, the importance of the blockchain is steadily increasing and if Germany wants to remain competitive and exploit the opportunities offered by digitization, there is pressing need for action.
There is a very simple and, from this point of view, plausible reason why banks and politicians are resisting the expansion of the reach and implementation of the blockchain. Banks as “intermediaries” between unknown business partners are no longer necessary, as trading in securities, transactions in cryptocurrencies and investments or funds do not require banks as interfaces thanks to the blockchain.
Utopia or a viable vision? The influence of politics on the blockchain.
From a technical point of view, nothing stands in the way of introducing this future technology. As can be seen at cryptocurrency exchanges, blockchain is a practical and functionally versatile solution. Politicians are speaking out against an “alternative financial market”, regarding it as a threat to the commercial capacity and sales power of conventional banks. But the fact of the matter is that progress cannot be halted and that innovative money transfer technologies with cross-border performance have long ceased to be a Utopian idea. More and more people are already convinced of the advantages of bank-independent financial decisions and are demonstrating their dwindling confidence in the conventional financial market by averting it. Experts know that even politics cannot stop the blockchain boom, and they see a change taking place across financial markets.