Going by the surging popularity and awareness regarding crypto currencies, it would be fair to expect that these financial innovations are making a positive impact on the real economy. Things are not all that simple and crypto space is up against some serious obstacles.
The good news is that, people in general are becoming more aware of crypto currencies. Governments that were once rushing to find ways in which to block out cryptos, have now realized that it is a waste of time. This has led to a more softened approach, laws and regulations are being enacted to monitor crypto transactions.
So how could a cryptocurrency be linked to the real economy, the answer is quite straightforward. A blockchain project that is focused on improving the efficiency or performance in a specific industry, would be working within the real economy. When such a project includes the implementation of a crypto currency, it would generally mean that the crypto is operating within the real economy.
With cryptocurrencies presenting themselves as an option for money transfers, will banks have a diminished role to play. To begin with, we are far away from the point where digital currencies will have a worldwide acceptance. However it is quite possible that some industries, would more readily embrace blockchain and crypto related solutions.
There is no doubt that banks fear being sidelined in the future but, it really is something that they would be responsible for. It is important that banks innovate and seek a productive role in the world of cryptocurrencies. Banks have for long been able to charge fees and commissions that, were unreasonably high. Businesses had no option and laws and regulations often favored banks. Digital currencies will soon gain enough momentum to slice away bank business, slowly but surely.
Let us look at another interesting way in which digital currencies can enter the real world economy. There are more than 800 cryptocurrencies inhabiting crypto space at any given point of time. No more than 10% would eventually be worth owning. The crypto world itself is growing rapidly, it now includes hardcore pros, moderately crypto educated participants and absolutely novices.
We are likely to see a scenario where, businesses start to accept digital currencies as a mode of payment. More importantly, these could be cryptos deployed by a different entity. Department stores, hotels and probably even airlines, could accept cryptocurrency for purchases of products or services. Likely that a limited number of cryptos would be preferred.
It is fair to say that, cryptocurrencies will eventually become an integral part of an economy. Crypto legislations are being worked on in many countries, this is good news for all crypto space stakeholders. There is no wishing cryptocurrencies away just as, criticism of these financial innovations is never going to vanish. The best option would be to harness the benefits of digital currencies while, preventing misuse.