Advantages and disadvantages of digital money in times of Libra
Today, digital currencies are a key battlefield in finance for payment processing technology companies and banks
Daily transformation that digital currencies create in the exchange methods and in our vision of life are advancing rapidly, are a challenge that goes hand in hand with the accelerated world of innovation in digital payment tools that has also been disturbing for the Forum World Economic and other international institutions, who discuss how radical can be this transformation.
In today’s times, the idea of creating digital currencies like Facebook Libra has generated shock in companies and authorities around the world, as Otto von Bismarck said: “If there has to be a revolution, let’s do it instead of suffering it.” The big question is not whether they should try to lead the digital currency revolution, but how.
Important social benefits
Despite the impact generated by digital currencies in the economy, the opportunities offered in the market are clear enough, as it was stated in a report for the Bank of England (BOE) a few months ago before the processes generated in the Developed countries in relation to how expensive the transfer of money can be and those who end up paying more are usually the ones who can afford it less, for this reason, the need to improve these processes.
According to the World Bank, the average cost of international remittances person to person is about 7% of the amount. Attempts to improve the main payment channels are already underway. For example, TransferWise says it reduced the average cost of cross-border transfers for its customers to 0.74%.
However, the least explored routes remain a challenge due to the obstacles posed by anti-money laundering regulations and poor data quality.
K.Villarroel
Source: bancaynegocios
