{"id":1271,"date":"2021-12-21T09:00:01","date_gmt":"2021-12-21T16:00:01","guid":{"rendered":"https:\/\/avalaunchsites.com\/bma\/?p=1271"},"modified":"2021-12-15T15:01:22","modified_gmt":"2021-12-15T22:01:22","slug":"how-will-cryptocurrency-affect-the-financial-industry","status":"publish","type":"post","link":"https:\/\/avalaunchsites.com\/bma\/2021\/12\/how-will-cryptocurrency-affect-the-financial-industry\/","title":{"rendered":"How Will Cryptocurrency Affect the Financial Industry?"},"content":{"rendered":"

As more and more online companies begin to accept cryptocurrency as a form of payment, it has both lawmakers and financial institution regulators feeling nervous. The frequent introduction of cryptocurrencies has many people wondering what the impact will be on banks and the financial industry as a whole. Will banks be forced to adapt their systems? If banks are affected, what impact will their customers face? These are some of the questions we aim to cover in this article.\u00a0<\/span><\/p>\n

What Is Cryptocurrency?<\/b><\/h2>\n

\"\", also known as crypto, is a digital currency with no physical form. Cryptocurrencies can be considered virtual tokens that have value determined by the market forces that are created by people who purchase or sell them. Rather than relying on government guarantees, a technology called blockchain oversees the operation of cryptocurrencies. Cryptography is used to control and verify transactions, and to control how and when new units of crypto are created.\u00a0<\/span><\/p>\n

Cryptocurrency is different from flat currencies such as the British pound or the U.S. dollar, as they are not issued by any central authority, nor is supply determined by banks. They can be obtained through a process called mining, which involves using high-power computers to solve cryptographic problems. People can also purchase them through brokers, then store and spend the crypto using encrypted wallets.\u00a0<\/span><\/p>\n

History of Cryptocurrency\u00a0<\/b><\/h2>\n

To get a better understanding of the impact cryptocurrency could potentially have on the financial industry, it\u2019s important to take a quick look at its history. This timeline shows just how popular crypto is becoming, and how quickly it\u2019s gaining that popularity.\u00a0<\/span><\/p>\n