As the objectives of the introduction of the euro currency have shown, the existence of a common currency in a country or group of countries is not a neutral issue, neither financially of course, nor from an economic or political point of view. It is logical to expect that if cryptocurrencies develop, trade in traditional currencies will decrease. It is then the economic importance of the States, or groups of States sharing the currency (for the euro: part of the European Union), that will be affected, and therefore their political importance.

The debate is not new: for example, in 1997 J.A. Dorn published "The future of money in the information age" addressing some of these issues. But it is all the more important now, especially since the Facebook initiative, as described by Dariusz Prokopowicz.

The accounting system must develop accordance this fact.

I think that cryptocurrencies are the next generation of money. In fact, cryptocurrencies developed on blockchain platform are perfectly suitable for digital age. There are many problems with cryptocurrencies national and international regulation, but it seems to me that is process goes on. Many subjects already addopted cryptocurrencies and it's matter of time when cryptocurrencies will prevail over traditional money. Consequences? Consequences? Nobody knows exactly! It seems to me that we can expect new financial system very soon.

I agree with you Aleksandar Dejanovic

Aleksandar Dejanović gives very good approach to this question. I totally agree!

Cryptocurrency now plays as a speculative role in the financial market. People may expect cryptocurrency to replace the role of some sovereign currency if those currencies do not satisfy the following roles

(1)to preserve the value of hard working accumulation

(2)to be a stable currency with important international currency

(3)have some specific role in some specific transactions, such Blockchain for trading or for value-preservation.

In the long run, I think cryptocurrencies may replace many not that good sovereign currencies if the above criteria do not meet.

I think that the role of the traditional financial system does not decline due to the development of cryptocurrencies. Cryptocurrencies are one of the form of money and no more.

I built a general macroeconomic model which can explain all monetary models in our civilization. We have some new notion in economic knowledge.

https://www.researchgate.net/project/General-macroeconomic-model-by-design-thinking-for-blockchain-economy

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that cryptocurrencies will be increasingly implemented in the settlement systems operated by technology corporations, including Internet corporations and by financial institutions, i.e. banks and investment funds.

I would like to add a few words to the above discussion regarding the development of interesting cryptocurrency issues. In the context of the above discussion, I am asking you:

- Does the development of cryptocurrencies create only a new segment of financial settlements or will it successively replace some of these settlements by replacing settlements with traditional currency on settlements using cryptocurrencies?

- Will cryptocurrencies revolutionize e-commerce settlements and payments in the future?

- What are the positive aspects of using cryptocurrencies in settlements between financial institutions?

What do you think about this topic?

What is your opinion on this topic?

Please reply

I invite you to discussion

It may be declined.

It mat replace some currency in the international tradings, but it will increase the totoal transaction volume.l

Dear Colleagues and Friends from RG, 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.

What do you think about this topic?

What is your opinion on this topic?

Do you agree with me on the above matter?

Please reply

I invite you to discussion

Thank you very much

Best wishes

Dariusz Prokopowicz

People who could not access trade and finance ten years ago can do so today. Peer-to-peer networks, including those based in cryptocurrencies, are becoming more common and those who might be turned away by traditional banks now have another way around financing.

Those who are paying attention have already identified cryptocurrencies as an industry threat. French banking giant, BNP Paribas released a report where they discussed the technology behind cryptocurrency and how it could lead to making the traditional banks redundant.

That depends on the national economic system and its policies, developed countries may show some effects indeed it expand cryptocurrencies in its economy. But for developing and emerging economics that will take longer to reflect any changes.

Dear Colleagues and Friends from RG, Thank you very much for participating in the discussion, for valuable tips and new insights given to the above issues regarding the answer to the question: Will the role of the traditional financial system decline due to the development of cryptocurrencies? The above discussion inspired me to formulate the following questions: Should the development of cryptocurrency markets be regulated? Should cryptocurrency markets be controlled by existing financial system supervisors? Should central, supervisory financial institutions perform a similar role to the central banking function for the largest cryptocurrency markets?

Whether YES or NO, please explain your answer.

What is your opinion on this topic?

Please reply.

Thank you very much.

Best wishes.

Dariusz Prokopowicz

I do not think that will happen in the foreseeable period, perhaps in decades. This will be possible.

Hello Dariusz, I think that the short answer is yes, the concept of cryptocurrency is a threat to current banking systems. But, we are far far away from the days when the modern banking system would be replaced by crypto ATMs and transactions. Cryptocurrency is based on the distributed ledger technology powered by blockchain.

The SARS-CoV-2 coronavirus pandemic (causing the Covid-19 disease) in various aspects influenced the development of financial markets, monetary policies conducted by central banking, the development of electronic banking, including internet and mobile banking, the development of e-commerce and the development of systems Internet settlements, etc. On the other hand, the SARS-CoV-2 coronavirus pandemic has also caused an increase in the use of ICT, Internet and Industry 4.0 information technologies for various processes implemented in public institutions, enterprises, financial institutions, educational and cultural institutions, etc. SARS Coronavirus Pandemic -CoV-2 has also caused an increase in Internet trade, the development of e-logistics, etc., and the development of crowdfunding as part of external financing of various social and economic projects. The development of cryptocurrency markets has also been observed in recent months. Bitcoin's valuation was rising again. In recent days (mid-July 2020), there was information in the media that increased the awareness of the Bitcoin topic in the media, namely information about the increase in the activity of cybercriminals who send false information via social media portals (e.g. Tweeter) regarding payments made in Bitcoin for specific purposes, e.g. to extort funds transferred to the accounts of cybercriminals by paying a fee for a fake, seemingly super attractive tourist trip offer, etc.

In view of the above, is there also an increase in Internet users' interest in the issue of cryptocurrencies in connection with the increase in electronic payments made remotely via the Internet caused by the Coronavirus pandemic?

Please reply,

What's your opinion on this topic?

Thank you very much,

Dariusz Prokopowicz

I believe that we should not look at cryptocurrencies as a threat but merely as a technology that came to provide new solutions.

I think that cryptocurrency and blockchain technology will be used and utilised by many sectors to improve and evolve the current financial system legally and financially.

There is a possibility...Modern technologies in financial circulation open new opportunities both for business

and for society itself. Сryptocurrencies are an innovation for the future, and perhaps

they may soon become a full-value means of payment and even an investment

tool, especially for small and medium-sized businesses. Cryptocurrencies with their

properties are capable, to some extent, of replacing, or even completely replacing

the traditional money. But with central banks treat with caution to a rapid development

of cryptocurrencies, being afraid of uncontrolled emissions and other possible

abuses. Cryptocurrencies do not protect a user, and there are risks of exchange rate

volatility, as well as cyber threats... Kaminskaya, T. E., & Petrova, V. A. (2018). Cryptocurrency: Financial Revolution or a Threat to the Financial System. KnE Social Sciences, 111-117.

Considering the fact that central banks have already started working on a policy for blockchain opportunities, we believe it is only a matter of time before central banks start issuing their own digital currencies. The blockchain as well as cryptocurrencies create both opportunities and challenges for countries. The advantages of cryptocurrency mainly include reduced transaction costs, improved security and a transparent community with easy access. However, globally it is unregulated by the international organizations, such as IMF, and not monitored by any central bank, providing less control over monetary policy and, therefore, more repercussions. Overall, it is worth to study and investigate monetary policy of cryptocurrency, because by learning from the lessons of traditional monetary policy, we may be able to develop a tool that is particularly targeted at cryptocurrency and aimed at solving problems with its price volatility and market confidence... 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.

Yes, I also believe that new innovative technologies, new forms of electronic payments, online settlements, including the use of cryptocurrencies in online settlements, can stimulate the development of further innovations and have a positive impact on economic development. I am glad that we look at this issue in a similar way.

Best wishes,

Dariusz Prokopowicz

In recent months, interest in cryptocurrencies as alternative forms of investing in informal markets has increased again. The SARS-CoV-2 (Covid-19) coronavirus pandemic has increased the digitization and internetization of economic processes. Central banks, as part of the anti-crisis monetary policy, significantly lowered interest rates from March 2020. So, has the SARS-CoV-2 (Covid-19) coronavirus pandemic increased interest in cryptocurrencies?

What do you think about it?

Greetings,

Dariusz Prokopowicz

In the past few months, especially towards the end of 2020, there has been a growing interest in cryptocurrencies as alternative types of financial assets for speculative investments. Perhaps it is the increase in digitization and internationalization of economic processes caused by the SARS-CoV-2 (Covid-19) pandemic, including the development of online commerce, e-commerce, online payments and settlements, online transactions, online banking, online services information, Internet computer games, etc. caused an increase in interest in cryptocurrencies during the pandemic.

Regards,

Dariusz Prokopowicz

It’s difficult to answer this question with complete confidence. Perhaps a middle ground needs to be reached; banks need to do more to understand and accommodate the blockchain technology behind cryptocurrency, and the creators of new cryptocurrencies need to consider and appreciate the importance of traditional banking practices. Cryptocurrencies developed on blockchain platforms could prove to be perfectly suitable for the digital age. It is an alternative that is fundamentally different from the existing financial world and it does have the potential to prevail over traditional money.

Dear Danung Nur Adli,

Yes you are right. Banks have only recently become interested in cryptocurrencies. Blockchain technology is only in the early stages of development. Cryptocurrencies may be much more used for online settlements in the future than they are today.

Best regards,

Dariusz Prokopowicz

As of February 2021 I see two interesting developments:

1) In the last year or so the importance of DeFi has risen from around 1B USD to 40B USD.

2) Central bank digital currencies (CBDCs) are increasingly getting attention. There are different design options and some of them might even be based on blockchain/DLT (e.g., Bakong in Cambodia). While conceptually very different from P2P systems, cryptocurrencies might be one major factor that central banks are increasingly exploring this topic.

Dear Horst Treiblmaier,

Thank you for interesting information on the interest of central banks in digital currencies.

Regards,

Dariusz Prokopowicz

In recent months, interest in cryptocurrencies, including Bitcoin, has increased again. Perhaps it is related to the increase in the scale of digitization and internetization of the economy, as occurred during the SARS-CoV-2 (Covid-19) coronavirus pandemic. Elon Musk recently announced that Tesla has bought Bitcoin and that it may be possible to buy Tesla electric cars for Bitcoin in the future. Following this announcement by Elon Musk, the price of Bitcoin rose again. In the last 3 years, other financial institutions, some banks (e.g. some investment and commercial banks) created their cryptocurrencies. Also, some fintechs and internet technology companies, including internet companies running social networks (e.g. Facebook), have created their cryptocurrencies. In light of the above, the following questions remain valid: Will the importance of cryptocurrencies increase significantly in the future compared to traditional currencies? Will a significant part of online transactions be carried out with the use of cryptocurrencies in a few years? Are there any institutionalized and regulated markets emerging in a few years where cryptocurrency will be traded?

Regards,

Dariusz Prokopowicz

It depends on what kind of service the bank wants to provide. For some routine job, the APP can replace human beings to show its endless diligence and non-fault. For the investment or other services needing more intelligence. Now, we still could not see artificial intelligence having a chance to replace human beings. AI could help people reduce some big problems with machine calculation, but detail customer needing still relies on the help of human. We could develop some APP on the webpage or cellphone to make people easy to access the banking service. However, some investment or loan jobs still need human intelligence to help.

Dear Christopher Tai,

Yes of course. As early as the end of the 1990s, there were discussions and considerations suggesting that only a few years later there would be only internet banking and electronic money. However, this did not happen. Physically existing bank branches with employed bank advisers continue to function. The SARS-CoV-2 (Covid-19) coronavirus pandemic has increased the importance of remote support. Bank advisers advise remotely and so far are only partially replaced by online applications, the so-called Avatars resembling with their image and sound call center advisors, but being computer programs equipped with artificial intelligence technology or learning machines. The importance of mobile banking and access to banking services from a smartphone is growing. However, still people are employed in banks and other financial institutions, other corporations, companies in commercial positions, and not only robots or online avatars equipped with artificial intelligence technology or learning machines and other technological solutions Industry 4.0.

Thank you, Best wishes,

Dariusz Prokopowicz

Yes, I think that within the next 5 years it will happen

Dear Amar Yasir Abdulkadhim,

Yes. The development of cryptocurrency applications is currently dynamic. In the following years, the importance of cryptocurrencies will also increase.

Best regards,

Dariusz Prokopowicz

Dear Dariusz,

Is it possible for you to predict what will be the future of XRP? Any suggestions to invest in Crypto?

best regards,

Thusitha

Dear Thusitha Serasinghe,

In my opinion, the key guidelines for investing in cryptocurrencies can be provided by the correlations of the development of ICT and Internet information technologies with economic development, and the correlations between the development of the SARS-CoV-2 (Covid-19) coronavirus pandemic on the economy through the increase in digitization and the Internet of settlements, online payments aspects of the activities of business entities, etc.

Thank you, Best regards,

Dariusz Prokopowicz

Again, after a period of 3 years, the interest in cryptocurrencies, the valuation of which is growing rapidly, has increased significantly. Perhaps this is related to the increase in digitization and internetization of economic processes during the SARS-CoV-2 (Covid-19) coronavirus pandemic.

Best regards,

Dariusz Prokopowicz

Bitcoin (not asset backed cryptocurrencies) is nothing more and nothing less than unlicensed gambling. Instead, central bank cryptocurrencies -- digital regular money issued by government -- will lead change.

Details are in my book: Bitcoin: The Mother of all Scams. https://www.amazon.com/gp/product/B095NMLM2F

Dear Bob Seeman,

Yes of course. There is a high investment risk associated with investing in cryptocurrencies. Based on what I wrote earlier, you can see that I was right to warn against the highly speculative increase in Bitcoin's valuation that occurred during the pandemic and the high risk of a strong Bitcoin valuation crash that recently occurred.

Thank you, Best wishes,

Dariusz Prokopowicz

Dear Sotiris Folinas,

Yes. I also believe that cryptocurrencies can generate new, additional risk categories for the development of traditional banking.

Thank you, Regards,

Dariusz Prokopowicz

At a general level, everybody (Private enterprises and public enterprises) will eventually fall for cryptocurrencies because of their superior advantages that come with their configuration, security, speed, trust and less cost when it comes to the burden of accounting and transaction verification. However, I still think we need to brace ourselves as a society for the Titanic Battle between governments now all going for digital national currencies versus the private crypto ecosystem. You may have already now seen how Central Banks are all bent on introducing the Central Bank Digital Currency projects almost everywhere in the world. Their survival can only be guaranteed, if (in the view of the government) private cryptocurrencies are taken out of space. This is why China has recently been doing to clamp down on all crypto mining operators to create a less competitive space for their own CBDC - the Digital Yuan.

But I think, in the long run, this approach is not sustainable and the state cannot impose its currency on citizens if citizens have a preference for using something else. In fact, the debate should go to the next level where we all now need to question the relevance and legitimacy of the state to hold and patronize its power on currencies, in general. The world, through the Nakamoto revolution, has moved to a point where fiat currencies should simply become obsolete and allow a free spirit of people's money to prevail in the true sense of democracy.

Dear Gurvy Kavei,

Yes. Cryptocurrencies have many advantages and can be used in various types of online payments and settlements. However, the cryptocurrency development process is not very dynamic.

Thank you very much,

Best regards,

Dariusz Prokopowicz

https://technode.global/2021/09/22/the-future-of-banking-money-redefined-in-a-financialized-world-part-1-of-3/

In the past, there was a clear distinction between banks which manage your deposit while providing a range of use cases, and wealth management companies that focus on growing your wealth by managing your assets. Now, with the likes of Robinhood, Coinbase, Crypto.com, and many others, the line has blurred. You can now gain daily interest on your Bitcoin or stable coins and spend it instantly on a new jacket using the Coinbase card.

Knowing this, would you or the younger generation still prefer to keep money in their low-interest-bearing bank account? What does the future hold for banking? Would the competition be about attracting more of the end consumers’ local currency-denominated deposits, or their money and assets including equity or fixed income, crypto, or even NFT?

(citation: from the link).

Dear Stephen I. Ternyik,

Thanks for your contribution to our discussion and for the link to an interesting publication on The future of banking: Money redefined in a financialized world. You have pointed out important determinants of the growth of potential uses of cryptocurrencies in the financial system.

Best wishes,

Dariusz Prokopowicz

Dear Abbas Nawar Al- Musawi,

Yes, you added a new issue to our discussion related to the development of cryptocurrency applications.

Thank you, Regards,

Dariusz Prokopowicz

Morning folks. It is so heartwarming to acknowledge that cryptocurrencies have already more than influenced and changed traditional banking in many ways:

1. Centrality and proxy management of personal accounts have shifted more towards self-autonomy - no need for a personal bank manager anymore.

2. Fiat assets are rapidly being converted to digital assets through the ubiquitous introduction of central bank digital currencies.

3. International payment systems have seen rapid adoption by key players like PayPal, SWIFT, even IMF and World Bank have restructured their transactional algorithms to interface with cryptocurrencies.

4. Juris adoption of cryptos as legal tender is the next key battlefield we need to be watching from today. We have seen it, albeit a small economy of El Salvador. I am watching Zimbabwe in the next few weeks and months.

5. The mere fact that cryptocurrency regulations are being ratcheted, even at the G20 stage, is a clear expression of the inevitability of the crypto Tsunami in the days ahead.

The future is no longer in the future. We are right now in the middle of that future. Enjoy the day and invest More in Bitcoin, especially now that it is headed towards US$100k before the end of this year. Autopiloted Wealth Creation.

Cryptocurrency is rised suddenly. Therefore this demands a lot of time to be well organized, secure, and reliable to be generally accepted in the payments system. Nevertheless, how can know what foreseen future could brings.

Dear Gurvy Kavei,

You pointed to the developmental and future significant areas of cryptocurrency applications in banking systems.

Thank you very much,

Best regards,

Dariusz Prokopowicz

To some extent yes, just like in any form of competition, the stronger ones always win

The SARS-CoV-2 (Covid-19) coronavirus pandemic has accelerated the digitization and internetization of economic processes. During the pandemic, there was an increase in e-commerce, online billing and payments, and the development of online banking. In addition, there was also an increase in interest in cryptocurrencies during the pandemic. Thus, the question arises: Has the SARS-CoV-2 (Covid-19) coronavirus pandemic accelerated the development of cryptocurrencies?

Best regards,

Dariusz Prokopowicz

https://www.quora.com/Will-the-role-of-the-traditional-financial-system-decline-due-to-the-development-of-cryptocurrencies

currency is just small component of financial system hence the question is redundant. Most countries are coming u with their own digital currency floated and regulated by federal banks. Crypto currencies don't have any underlying assets and are unregulated. Hence it is just digital bubble.

Financial System Decline Due to the Development of Cryptocurrencies. Traditional financial institutions such as banks are crucial to our economic system. However, with the rise of cryptocurrencies, this role will be diminished. People need a safe place to store their value, funds, and transactions