The coronavirus pandemic is changing our attitude towards money, what does this mean for the crypto sector?
Richard Ells, CEO of Electroneum, talked about whether digital assets can offer an attractive alternative to cash. He also mentioned the challenges the industry must overcome and whether sufficient cryptocurrency projects are striving to meet regulatory demands.
According to Ells, cryptocurrencies are disrupting the entire financial environment and reshaping the industry. Cryptocurrencies are awakening calls for traditional banks, financial systems, and authorities to eliminate intermediaries and jeopardize the management of financial services. Peer-to-peer transactions are possible faster and cheaper than ever by using cryptocurrencies.
In developed countries, cryptocurrencies are so volatile that they cannot be put to practical use as a daily payment method. But in developing countries everything is different. According to Ells, Venezuela’s fiat currency was caught in a downward spiral and fell dramatically against the US dollar.
People prefer to use cryptocurrencies instead of local currencies, which makes perfect sense given the financial crisis. Digital assets are volatile, but they protect consumers from inflation and devaluation.
Will the coronavirus pandemic drive people to cryptocurrencies?
There is already evidence COVID-19 We are accelerating the adoption of cryptography. Electroneum and AnyTask saw a significant increase in new registrations between March and June.
Deutsche Bank recently published a study that COVID-19 accelerated the evolution of coins and banknotes that could touch non-contact systems, including cryptocurrencies. Cointelegraph recently published an article claiming that the pandemic has led people to use different payment methods to avoid using cash.
Last month, Singapore’s DBS Bank said major European financial institutions were beginning to see new demand for cryptocurrencies. Chief Economist Taimur Baig said bankers around the world believe COVID-19 will accelerate adoption.
Electroneum backs it up with that number. Between May and August, Electroneum gained about 7,000 new users in Brazil, more than 16,000 in Turkey, 8,000 in Nigeria and 8,000 in India.
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Will COVID-19 and the financial crisis make crypto more popular?
https://www.financebrokerage.com/covid-19-and-financial-crises-makes-cryptos-more-popular/ Will COVID-19 and the financial crisis make crypto more popular?