In a world in constant and permanent evolution, where digitization and technological progress are undeniably the watchwords, crypto-currencies constitute a milestone in the history of money. Mainly known until now as investment instruments, virtual currencies are seen by some as the future currency of international trade. The world is increasingly decentralized, which is why cryptocurrencies are growing in popularity to fill the gap. Cryptocurrencies are not regulated by banks and every transaction involving them is known by the community. They are also highly resistant to any hacking attempts, making them relatively safe to use as a transaction tool in the future. Today there are many cryptocurrencies issued and individuals are given more freedom to create their own crypto tokens.
Crypto-currencies: presentation and advantages
Crypto-currencies – of which Bitcoin is certainly the most famous – are actually a sub-category of a larger set of crypto-assets, digital assets using an information network and based on the blockchain technology. Their purpose is to enable transactions to take place. A decentralized form of money, these crypto-assets are gaining increasing weight in the international financial system because of the advantages they present.
Cryptocurrencies promise a simplification of payments and, as such, they would further contribute to the strengthening of the internationalization of trade. Using these crypto-assets can make transactions simple and fast. Cryptocurrencies also have the potential to significantly divide the costs of financial transactions, thereby generating savings for users. Indeed, the fees associated with cryptocurrency transactions are significantly lower than the fees traditionally applicable to banks. Finally, crypto-currencies are not subject to the control of banks or states and, to put it another way, no administrative system (whatever it may be) is involved in the transactions. Cryptocurrencies would also guarantee better security for the holders of these virtual currencies as well as greater security for the transactions themselves.
Platforms such as “Overstock” and “Shopify” already accept payments made in certain cryptocurrencies. PayPal has also declared in a press release its intention to join the cryptocurrency market. All this therefore makes it possible to envisage a significant development in the use of virtual currencies.
Today cryptocurrency trading like stock trading and forex is also getting more and more popular. Day by day more and more people are getting involved and the need for various trading tools is also increasing rapidly, including crypto trading applications like the famous Bitcoin Prime. These apps are very helpful for beginners who are confused when they first enter a trade.
In practice, what legal framework?
Initially seen as speculative investments or means of payment aimed at hiding the existence of financial transactions, cryptocurrencies are increasingly seen as means of payment in their own right. With the regulatory movement underway, cryptocurrencies could soon be used in a much more global way and redefine the means of payment in commercial exchanges.