Dear Mr Dariusz Prokopowicz ,

First, at the micro level, cryptocurrency behavior is a reflection of the growing security of cryptocurrency transactions. In addition, cryptocurrencies allow investment Banks to more micromanage their capital operations. This kind of capital operation can be closer to physical analysis. For example, when dealing with capital operation under different conditions, cryptocurrency can better conduct closed research.

Second, take China as an example. Because China had so many dynasties, so many people and so many territories. China is more diverse. In Chinese history, official physical currency appeared in 210 BC and paper currency in 1023 AD, 1233 years apart. So, the current year, 2019, is 996 years away from the emergence of paper money. So, I believe the big changes in the new form of money are coming soon. Hope this unique and interesting Angle can enlighten you.

For details on the model and numerical calculation, I think you can refer to @ Norikazu Saito . For research tools, you can refer to Laura Cervino .

Interdisciplinary research is necessary.

I hope the answer will help you.

sincerely,

Lanzco CHENG

Cryptocurrencies are a commodity used for investment and medium of exchange purposes. Banks exist to serve their customers. If customers desire a product and/or service then banks should meet that demand. There are numerous cryptocurrencies with different risk and liquidity profiles. Banks need to consider the risk and liquidity when selecting which cryptocurrencies to deal with.

Do banks create crypotocurrencies? I'm not sure.

Banks normally do not create cryptocurrency. Nothing is stopping them from doing so. Banks can facilitate, as a broker, the purchase and sale of cryptocurrency and as an additional recordkeeper.

Yes, the banks primarily make their private blockchain so as to enable a security of the data and transaction records, transactions facilitation, to expedite remittances. Tipically there is always a criptocurrency tied to the blockchain which as yet has a quite secondary role

WoW. I use to think that banks create cryptocurrency mainly to raise fund and provide a store of value. But I am glad that many insight have been provided above.

In the context of the above considerations, the following question is also current:

There have been various international currencies in the past. In the past, there were also various international exchange rate systems such as those based on a gold parity or USD parity.

At present, there are also several currencies of international importance, which are recognized in international settlements by many countries. There were also arbitrarily created new international currencies, such as the Euro, which is issued by the European Central Bank acting as a superior supra-national financial institution for central banks of the Member States of the single Euro currency area. On the other hand, the importance of cryptocurrencies, which operate outside institutionalized and centralized financial systems, is growing.

In view of the fact that in many countries the financial systems are increasingly deregulated and therefore susceptible to instability, can the role of traditional currencies decrease and the share of cryptocurrencies in international settlements grow?

Considering the value of transactions, will the most important global currency ever become a cryptocurrency in the future?

Do you agree with me on the above matter?

Please reply

I invite you to the discussion

In view of the above, it is also important to include in the above discussion also the following issue:

More and more large companies are announcing the creation of their own cryptocurrency. Some investment banks, such as JP Morgan, have announced the creation of their own cryptocurrency for settlements with key contractors.

Some technology companies operating in the field of ICT and new online media also plan to develop blockchain technology in cryptocurrency applications.

For example, the social media portal Facebook also announced the creation of its own criticism called Libra, which the users of the portal will be able to pay for various services available through Facebook. Some investment funds invest their financial capital in some cryptocurrencies.

In the context of the above issues, I am asking you the following question:

Whether in the context of the development of cryptocurrencies, the share of transactions made with traditional money issued by central banks will gradually decrease. Will the development of cryptocurrencies and their rapid dissemination not jeopardize the stability of the monetary systems of some countries?

If the share of traditional money in total transactions made by citizens will decrease, will the significance of the financial system, including the banking system, also decrease?

If there is a large unpaid public debt in a given country and a decrease in the use of traditional money in transactions between entities, can it lead to a serious financial and / or currency crisis?

Many countries finance their public finance debt by issuing Treasury bonds in which foreign financial institutions also invest.

So, can future cryptocurrencies be used for international settlements in the future?

Can the decrease of confidence in the national currency of a heavily indebted country lead to an increase in international settlements using cryptocurrencies?

Will the share of transactions made with traditional money issued by central banks decline successively due to the development of cryptocurrencies?

What are the consequences of this process in a country with large and growing public debt?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

in order to compete with other banks.

Recently, Facebook will announce that it will introduce its cryptocurrency Libra, which is to facilitate payments made from the Facebook user profile level when paying for services provided by other companies. Therefore, in the context of the above discussion, the following question arises: Will cryptocurrencies created by banks and other financial institutions, cryptocurrencies created by technology internet companies, social media portals, fintechs and other companies perform the same, analogous or slightly different functions?

Please reply

Dariusz Prokopowicz It depends on the purposes and the goals of those creators. They will function slightly differently.

in order to survive in upcoming intense competition due to technological advances banks ,just like other businesses , are trying to preparing themselves for future...

Dear Colleagues and Friends from RG,

The above discussion inspired me to formulate the following question:

Will the importance of cryptocurrency applications in electronic settlements grow in the coming years?

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that in recent years in connection with the development of ICT, Internet and Industry 4.0 information technologies as well as the new economy, e-commerce, electronic banking, security of data transfer on the Internet, etc. The importance of cryptocurrency applications in electronic settlements is growing.

Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my earlier considerations on this topic: Determinants of the development of cryptocurrency applications in online electronic settlements.

In my opinion, in the future, the importance of critics in financing various transactions and settlements carried out electronically, via the Internet, on social media portals, in investment banking, etc. will grow in the future. Currently, many technological startups base their development and competitive advantage on technological, product, service, marketing or innovation other. Banks are reluctant to grant investment loans to newly created startups basing their development on innovative technologies. In such a situation, innovative startups are created and financed from external financing sources such as investment funds, business angels, issue of securities, crowdfunding and others.

I believe that crowdfunding will grow intensively in the future as an alternative to classic forms of external financing of business ventures. It is an alternative to the offer of financial services of financial sector institutions, especially in the segment of financing innovative start-ups. Commercial banks operating as part of classic deposit and credit banking often avoid lending to innovative start-ups due to difficulties in assessing credit risk. In this situation, crowdfunding can be a good solution to problems finding external financing.

On the other hand, the importance of cryptocurrencies, which operate outside of institutionalized and centralized financial systems, is growing. Perhaps in the future cryptocurrencies will be displacing traditional currency from online financial transactions between fintechs, financial institutions, innovative startups, online technology companies operating social media portals and their clients, and between users of these portals.

In addition, it is necessary to improve the security of financial transactions made on the Internet and settlements carried out as part of online mobile banking. Therefore, blockchain technology is developing, which is used in securing transactions and transmitting data on the Internet. More and more large companies announce the creation of their own cryptocurrency. Some investment banks, such as JP Morgan, have announced the creation of their own cryptocurrency for settlements with key contractors.

Some technology companies operating in the field of ICT and new online media are also planning to develop blockchain technology in cryptocurrency applications. For example, the social media Facebook site also announced the creation of its own critical currency called Libra, which users of the portal will be able to pay for various services available through Facebook. Some investment funds invest their financial capital in some cryptocurrencies. Another issue determining the development of open innovations that are used on the Internet are technologies typical of the current technological revolution, Industry 4.0.

The current technological revolution referred to as Industry 4.0 is determined by the development of the following advanced information processing technologies, which include, among others: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced data processing technologies Data Mining. The technologies for advanced information processing listed above are increasingly used in various fields of industry, production of goods and provision of services.

The number of industries, branches of economic activity and sectors of the national economy is growing, in which advanced information processing technologies typical of the current fourth technological revolution known as Industry 4.0 are used. ICT information technologies and advanced information processing technologies co-creating the current technological revolution Industry 4.0 have in recent years been a key factor in the emergence of new technological innovations and other applications applicable in various branches of the national economy. These innovations are becoming the main factor in the development of innovative startups and technology companies operating on the Internet.

In macroeconomic terms, on the other hand, these technological and other innovations are an important factor in the development of modern knowledge-based economies and may have a significant impact on the economic growth rate of a developed and developing economy. In connection with the above, some types of innovations, including technological ones regarding Industry 4.0 issues as well as ICT and internet information technologies are developed mainly by commercial companies.

On the other hand, however, a significant part of innovation is also created in research institutions, scientific institutes, research and development centers and universities financed or co-financed from public sector funds. I described these issues in my publications, which are available on the Research Gate portal. I invite you to scientific cooperation.

In line with the above, in my opinion, in recent years, due to the development of ICT, Internet and Industry 4.0 information technologies as well as new economy, e-commerce, electronic banking, security of data transfer in Internet etc., the importance of cryptocurrency applications in electronic settlements is growing.

Do you agree with me on the above matter?

I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.

In view of the above, I am asking you the following questions:

- Will the importance of cryptocurrency applications in electronic settlements grow in the coming years?

- What are the main determinants of the development of cryptocurrency applications in electronic settlements?

- What kind of ICT, Internet and Industry 4.0 information technologies shape the development of cryptocurrency applications in online electronic settlements to the greatest extent?

- What do you think about this topic?

- What is your opinion on this topic?

Please reply.

I invite you to discussion and scientific cooperation.

Thank you very much.

Best wishes.

Dariusz Prokopowicz

Dear Colleagues and Friends from RG, I would like to add a few words to this discussion on this interesting topic.

Some corporations, technology companies and investment banks create their cryptocurrencies. In view of the above, I would like to inspire and encourage joint discussion on the following issue: To what end do institutions and enterprises accept a new type of money that is not fully regulated, which functions on unregulated markets, on markets that are not subject to financial system supervision institutions? Can cryptocurrencies be a kind of additional, emergency cross-border settlement instrument, implemented internationally in the occurrence of a currency crisis concerning specific traditional currencies?

What is your opinion on this topic?

Thank you very much, Regards, Have a nice day,

Dariusz Prokopowicz

Dear Muhammad Faraz Mubarak,

Yes, banks try to adapt to changes in the economic environment and increasingly use ICT, Internet and Industry 4.0 information technologies to develop and improve online electronic banking systems, including mobile banking. Some internet banks, like fintechs, are also interested in Blockchain technology and cryptocurrencies.

Best regards,

Dariusz Prokopowicz

Banks and investment funds that invested in Bitcoin a few years ago are now able to realize above-average, record-breaking, very high rates of return on these investments.

Regards,

Dariusz Prokopowicz

cryptocurrency is able to fulfill the three fundamental functions of money: medium of exchange, unit of account, and store of value...Oh, J. H., & Nguyen, K. (2018). The growing role of cryptocurrency: what does it mean for central banks and governments. International Telecommunications Policy Review, 251, 33-55.

… When other banks have cryptocurrency infrastructure then cross-border inter-bank transfers become possible using global or national cryptocurrencies …Ng, D., & Griffin, P. (2018). The wider impact of a national cryptocurrency. Global Policy, 1.

advantages of cryptocurrency mainly include reduced transaction costs…Бикалова, Н. А., & Славкина, О. Ю. (2017). The phenomena of cryptocurrency and its implication on the monetary system. Наука и образование: новое время, (3), 177-182.

Dear D A Gayan Nayanajith,

Thank you for taking part in the discussion. You added important issues related to the creation of cryptocurrencies by banks. Thanks for the references to the sources of literature in the field of cryptocurrencies in the context of financial institutions. I am looking forward to your participation in our discussions.

Thank you, Greetings, Have a nice day, Stay healthy!

Dariusz Prokopowicz

There is many use cases, of the many is money with expiry date.

For Investments and Payments & Settlements...Yilmaz, N. K., & Hazar, H. B. (2018). Predicting future cryptocurrency investment trends by conjoint analysis. Journal of Economics Finance and Accounting, 5(4), 321-330.

Chu, D. (2018). Broker-dealers for virtual currency: regulating cryptocurrency wallets and exchanges. Colum. L. Rev., 118, 2323.

Dear Tomasz Waszczyk,

Yes, this is an interesting issue regarding the use of cryptocurrencies in financial institutions. Thanks for the answer.

Regards,

Dariusz Prokopowicz

Dear D A Gayan Nayanajith,

Thanks for the proposed source of literature for this issue predicting future cryptocurrency investment trends by conjoint analysis. You raised an important issue in the context of the problem banks create their own cryptocurrencies.

Thank you, Best wishes,

Dariusz Prokopowicz

Digital currencies issued by central banks could also help improve the effectiveness of monetary policy by allowing a central bank to change rates directly on accounts holding the product, bypassing financial markets. https://www.wsj.com/amp/articles/why-central-banks-want-to-create-their-own-digital-currencies-like-bitcoin-11603291131

Advocates contend central bank digital currencies can make cross-border transactions easier, promote financial inclusion and provide payment system stability. There are also privacy and surveillance risks with government-issued digital currencies https://www.cnbc.com/2021/03/06/why-central-banks-want-digital-currencies.html

Banks have their own cryptocurrencies as away of diversifying their market base.

Dear Chinaza Godswill Awuchi,

Thank you very much for your valuable participation in our discussion, for your comments on the issues of cryptocurrency development in the context of financial systems and central banking. You paid attention to the interesting issues of the discussed issue of the institutionalization of cryptocurrencies. Thank you very much for the given issues and links to literature sources, to articles on the issue of creating cryptocurrencies in financial institutions. In the context of the above issues

Thank you,

Best regards,

Dariusz Prokopowicz

Dear Kiprotich Kiptum,

Yes, you pointed to the important issue of creating cryptocurrencies by banks. You pointed out in your answer an interesting point, i.e. that banks have their own cryptocurrencies away from diversifying their market base. An interesting issue is also the possibility of supervising cryptocurrency markets by financial supervision institutions. This is an important issue worth exploring and conducting research on the prospects for the development of cryptocurrencies in financial institutions. In the context of the above issues

Thank you, Greetings,

Dariusz Prokopowicz

In the context of the above-mentioned issues, another interesting issue worth undertaking research on this topic arises. Well, in the last months (late 2020 and early 2021) another wave of strong, speculative growth in the market valuation of one of the most important cryptocurrencies, i.e. bitcoin, is taking place. In 2020, this increase was associated with the increase in digitization and internetization of economic processes, indirectly caused by the development of the SARS-CoV-2 (Covid-19) coronavirus pandemic. Since the impact of the pandemic on financial markets and economic processes in many countries has been gradually decreasing since autumn 2020, there is a growing probability that the speculative increase in the market valuation of bitcoin may collapse in the near future. What do you think? What other factors of fundamental analysis can it consider as important in assessing the situation, including the possibility of continued speculative gains or the increasing likelihood of a crash in informal cryptocurrency valuation markets? What do you think about it? I would like to know your opinion on this matter.

Thank you, Best regards,

Dariusz Prokopowicz

Recently, the cryptocurrency Bitcoin has started to decline sharply. Why right now? Is the change in the valuation trend of this cryptocurrency associated with a change in development, and specifically with a decline in the development of the SARS-CoV-2 (Covid-19) coronavirus pandemic. In addition, other media messages that may have influenced include the statement by Elon Reeve Muska (founder or co-founder of PayPal, SpaceX, Tesla, Neuralink and Boring Company) that their businesses will not, however, make financial transactions using Bitcoin. The argument was, for example, high power consumption when mining (creating) Bitcoin, i.e. environmental factors. But maybe there were other reasons as well, such as maybe selling Tesla electric cars for Bitcoin was not going well. Earlier, Elon Musk stated that he was interested in this cryptocurrency that Tesla's electric cars would also be sold for Bitcoin. This earlier information influenced the Bitcoin market with a pro-growth effect. In addition, recently some countries announced that due to the high level of speculation taking place on the Bitcoin market, they do not plan to use or honor this cryptocurrency in various settlements and payments. And what other reasons could there be for these big changes in the cryptocurrency valuation trend?

Thank you, Best regards,

Dariusz Prokopowicz

Dear Muhammad Faraz Mubarak,

Yes, that's right. As part of these preparations for the challenges of the future, banks are also beginning to take an interest in cryptocurrencies.

Thank you, Regards,

Dariusz Prokopowicz

Tried to catch the rapid requirements of the new era.

Dear Dr. Dariusz Prokopowicz ,

Recently, there is a tendency to affirm that bitcoin will not be admitted as a payment currency for an “ecological” reason, that is, due to the high energy consumption the mined the cryptocurrency carries. At the same time, it seems that clients of investment banks no longer have the same interest in cryptocurrencies.

See the following link:

https://www.finanzas.com/divisas/las-criptodivisas-que-echan-humo-estan-al-margen-del-bitcoin-y-el-ether.html

Cryptocurrency may encounter some challenges due to the political restrictions of governmental constraints like what happened in China. Each economy puts its stability at first; therefore, cryptocurrency could impact this condition.

Dear Muhammad Faraz Mubarak,

Yes, that's right. banks create their cryptocurrencies, incl. as part of the use of new technologies and the implementation of new ICT and Internet information technologies, Industry 4.0 to the banking activity in order to improve it and adapt to new trends in the development of financial systems.

Thank you very much,

Best regards,

Dariusz Prokopowicz

With the increasing scale of uncertainty and credit risk in financial markets, including international financial markets, capital markets, currency markets, etc., the growing risk of another financial crisis, the demand for alternative forms of financial transactions is growing. In the face of increasing currency risk, the costs associated with international trade in products and inputs may also increase. In such a situation, the use of cryptocurrencies can be a solution to the problem of high level of currency risk. Cryptocurrencies can also be helpful when the scale of e-commerce is growing and the risk of internet data transfer increases. The significant determinants of the possibility of using cryptocurrencies include the issue of their universal recognition by various institutions and economic entities and the level of security of online transaction platforms that enable payments and settlements with their use. In connection with the above, I propose the following research topic on this issue: Determinants of the possibility of using cryptocurrencies in settlements carried out in the field of international trade in goods, services and production factors.

Best regards,

Dariusz Prokopowicz

Dear Dr. Dariusz Prokopowicz

the cryptocurrency system is universally accessible, easy to obtain and to use electronically by the Expedidor banking center; But even if supported, only future research will be able to investigate consumer competition on the Internet and compare it to their "real perceptions" and trust in cryptocurrencies. The "attitude", not the behavior in your real and general investment of consumers towards cryptocurrencies or other investments, will be basilar. I believe that future research should investigate consumers who have more "investment experience" and risk taking, in order to compare them with consumers who have little or no investment experience, as well as investigate the main factors that contribute to the confidence of consumers in cryptocurrencies.

Cfr.

Article Do consumers really trust cryptocurrencies?

Bech, Morten L. y Garratt, Rodney, Criptomonedas del Banco Central (17 de septiembre de 2017). Revisión trimestral de BIS de septiembre de 2017, disponible en SSRN: https://ssrn.com/abstract=3041906

Dear Juana Maria,

That's right. The key issue for answering the above question is to examine the potential interest of citizens, individual and institutional investors operating in various segments of financial markets in the use of cryptocurrencies in making financial transactions, payments, settlements, etc. with the use of cryptocurrencies. The results of this type of research are key to determining the strategy for the development of cryptocurrency applications in transactions made by commercial banks, investment banks, investment funds and other financial institutions, as well as non-financial technology companies and public institutions.

Thank you very much,

Best regards,

Dariusz