The profound impact of crypto currency on financial system and on practices of the central banks

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Good day steemians, I am pleased to be with you again today, today I will be discussing the impart of crypto currency on traditional financial system. This article will answer the following questions.

1 Will paper currency finally become obsolete?

2 Will Bitcoin and it's siblings the dollar,eur, yen and other?

3 Should central banks issue their own e-currency?

4 What opportunity do digital currency present and with what risk?

Presently alot of money is already electric. But physical currency is still widely used in most countries, consumers around the world routinely conduct transaction without physical currency, using credit card or mobile phone to for goods and services. So in some sense the idea of digital currency is not completely new.

At first when they introduce credit cards consumers had to learn how to deal with credit card. And nothing happened we survived it, so I think that we will do the same with digital currency idea. Furthermore most of the money central banks reserves exist only in electric form. So we can say that the idea of digital currency is not strange.

Ingve a financial player noted that most of the central banks money produced are wholesale central bank money, and all of that wholesale money is already electric, so when we're referring to cash we are talking about a very tiny fraction of what is actually going on in the financial system.

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Bitcoin and it's siblings aren't likely to replace government backed currency soon. Currently Bitcoin and other crypto are very popular but some persons don't trust them the way they trust us dollar and other Fiat money that is backed by central banks. Despite the erosion of confidence in government institutions most people still prefer Money back by central banks and this feeling will likely take a long while to vanished.

Patel governor of reserves bank of India says based on scalability some of the things where promise by Bitcoin network has not happened. Bitcoin network handle very few transaction per second while interbank visa system handle a hundred times of that.

Analysts estimate that global crypto currency market will more than triple by the year 2030, hitting a valuation of 5 trillion. Whether they want to buy into it or not investors, businesses and brands can not ignore crypto currency for longer period of time any longer. The future of STEEM and steemit is not to be over emphasis because crypto industry is growing by the day. I will surely promote steemit to help a lot of people or empower financially.

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