Bitcoin (BTC) was created for endless reasons. One of them is that the background technology, the blockchain, helps mankind in all possible areas. Today, in the midst of this new world crisis due to the corona virus, we ask ourselves: How can blockchain help the financial system?
With Bitcoin at the top, cryptocurrencies were born as a joke and today are not only the answer to many of the mistakes of the traditional financial system, but also their possible mass alternative.
Bitcoin should balance financial competition, eliminate intermediaries like banks, and maybe even replace Fiat entirely. However, volatility and absolute decentralization have raised concerns among many investors and regulators.
How can blockchain help the financial system?
Years ago it was very difficult to solve the word bitcoin, illegality and blockchain. Fortunately, all three elements have been solved today. Each of them doesn’t have to be presented, as both blockchain and cryptocurrencies are topics that are mentioned daily at all levels, not just in the financial area.
To the disappointment of the most optimistic, reality has shown that neither the banks nor fiat money will disappear in the near future. Well, cryptocurrencies and blockchain technology do not currently pose a short-term risk to traditionalism.
However, what is happening worldwide is that the financial system has increasingly integrated blockchain technology into its daily business. Some have even added services for retail users who own Hodls and also for bulk investors.
Blockchain technology enables systems to remove the archaic bank bureaucracy from the game board. The one who prioritizes the richest and those characters from the major economies above all else.
By eliminating the intermediary, people can avoid the high fees, interest rates, and other restrictions imposed by traditional financial institutions.
As already mentioned, blockchain can help the Latin American financial system. Well, our region unfortunately fits the reasons why Bitcoin and the blockchain were created as a ring on the finger.
Difficult access of the majority of the population to the international financial markets, a centralization, which leads to an enormous loss of efficiency, an inequality, which worsens over the years. Coupled with recurring inflation problems and authoritarian governments playing with their residents as they see fit.
The key is not to overthrow traditional financial institutions, but to adapt them to blockchain technology, which is far superior to previous IT systems.
However, the reality is that our region’s traditional financial system is far from adapting these new technologies for the good of the majority. That is why the use of 100% pure Cryptoverse is so widespread in our region.
Our system is still struggling with problems that other continents have long since overcome. Perhaps together with Africa we are the continents with the most problems, so absurd that they have become our daily life.