I think that digital currencies could change how banks make money and how much money they have on hand. I can avoid banks altogether and do peer-to-peer deals with digital currencies, whether I'm an individual or a business. This is different from the usual way money is made, which is when banks give money and make new money. This means that the process of making money might become less organized and more spread out.
But the effect on a bank's ability to get money may not be as big. Even though digital currencies might make less people want to use standard banking services, banks can still adapt and use digital currencies as part of their business. Also, many central banks are looking into the chance of making their own digital currencies, which could make it easier for them to control the amount of money in the economy and keep things flowing.
Topic: What impact of digital currencies like bitcoin have on money creation (Read 89 times)
April 20, 2023, 11:19:58 PM
April 20, 2023, 10:10:43 PM
More or less there will definitely be an impact of changes that occur in the financial system or the central bank, which is the result of the creation of this digital money. But most importantly, if the bank doesn't want to be left behind, the bank must follow current trends and currents, because that way it will make it easier for the bank to continue to exist and not sink.
Investigating and researching like that is indeed a must for the bank to do, because if it doesn't do that, the central bank will diminish in prestige. So making changes is indeed very important, to balance it with the current trend. The point is you don't need to think about what impact will occur from the creation of this digital money, because I am sure, parties such as central banks will also not remain silent, and will issue their latest innovations.
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According to a PwC report, more than 85% of central banks are now investigating digital versions of their currency, conducting experiments, or switching to pilot programs.
Source: https://www.cnbcindonesia.com/market/20210504092224-17-242916/apa-Jadi-uang-kripto-threat-for-bank-sentral-di-duniaInvestigating and researching like that is indeed a must for the bank to do, because if it doesn't do that, the central bank will diminish in prestige. So making changes is indeed very important, to balance it with the current trend. The point is you don't need to think about what impact will occur from the creation of this digital money, because I am sure, parties such as central banks will also not remain silent, and will issue their latest innovations.
April 20, 2023, 07:36:50 AM
When we compare a part of the assets against Bitcoin, we will notice that the percentage of Bitcoin and its impact is small.
The capacity of the Bitcoin market is currently less than a trillion dollars, compared to a total of 86 trillion dollars.
We haven't yet compared debt and total property value.
even if bitcoin reaches a market capacity of 10 trillion, which is about 20 times the current price ($400,000 per bitcoin) and the market capacity of alternative currencies increases to reach 10 trillion, it still does not represent 50% of the market and will not cause the global economy to collapse.
The capacity of the Bitcoin market is currently less than a trillion dollars, compared to a total of 86 trillion dollars.
even if bitcoin reaches a market capacity of 10 trillion, which is about 20 times the current price ($400,000 per bitcoin) and the market capacity of alternative currencies increases to reach 10 trillion, it still does not represent 50% of the market and will not cause the global economy to collapse.
April 20, 2023, 07:06:55 AM
Everything affects everything, and any financial instruments certainly affect financial institutions. And it is up to financial institutions to take into account the impact of various instruments and assets on maintaining their liquidity.
April 20, 2023, 05:09:00 AM
Is there any commodity change effects of digital currencies on money creation and banks fluidness or total liquidity?
what is your opinion? Do these currencies have a bump on money formation and banks liquid state or not?
Help please
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