The Future of Cryptocurrencies
Content of Figures
- Figure 1 Usability of Major Cryptocurrencies
- Figure 2 SWOT Analysis of Cryptocurrencies
- Figure 3 Pros and Cons for Cryptocurrency Use in Business
- Figure 4 Global Bans on Cryptocurrencies
- Figure 5 Regulatory Framework for Cryptocurrencies
- Figure 6 Cryptocurrency Interface with the Real Economy
- Figure 7 Digital Payments in China
1 Executive Summary
Cryptocurrencies are a decentralized alternative to fiat currencies and have the potential to disrupt the current financial infrastructure. Cryptocurr ...
Login Get full Access2 Highlights
- Unless critical weaknesses are addressed, cryptocurrencies are unlikely to see widespread adoption
- The strengths of cryptocurrencies come from its ...
3 Usability of Cryptocurrencies
First-generation cryptocurrencies depend on blockchain structures that make them incompatible with current AML and KYC regulations. A similar paradox ...
Login Get full Access3.1 Decentralized Management
Cryptocurrencies are built using blockchain technology. A major feature of blockchains is that they can operate without any centralized authority. Thi ...
Login Get full Access3.2 Privacy
This refers to the level of anonymity that users have while trading a cryptocurrency. Nodes may be completely anonymous, pseudonymous, or identified. ...
Login Get full Access3.3 Access Control
Access control refers to the range of actions that a participating node is allowed to take. Once a new node has joined (or been permitted to join) the ...
Login Get full Access3.4 Interoperability/Convertibility
Interoperability refers to how easily the cryptocurrency in question can interact with other cryptocurrency exchanges, wallets, software solutions, an ...
Login Get full Access3.5 Price Stability
Price stability is an assessment of the volatility of the value of a particular cryptocurrency. Most cryptocurrencies experience a high level of volat ...
Login Get full Access4 Strengths and Weaknesses of Cryptocurrencies
Cryptocurrencies may not seem relevant to your current business transactions. However, as early as 2020 the scope and influence of cryptocurrencies ma ...
The internal strengths of cryptocurrencies come from their use of blockchain technology. The automated, decentralized, immutable ledger bring many ben ...
Login Get full Access4.1 Cryptocurrency Internal Strengths
A main value proposition of blockchain-supported cryptocurrencies is to eliminate third parties and their associated costs. Current methods of conduct ...
Login Get full Access4.2 Cryptocurrency Internal Weaknesses
Cryptocurrencies do not demonstrate the defining characteristics of money. Money holds an essential place in society as a means of exchange, a store o ...
Widespread adoption of cryptocurrencies will require high convenience and usability. Thanks to Apple, a high-quality user experience is now a minimum ...
Login Get full Access4.3 Cryptocurrency External Opportunities
Cryptocurrencies could find a synergy with the growing gig economy. A gig worker, which has startling similarities to an informal sector worker, recei ...
Login Get full Access4.4 Cryptocurrency External Threats
Cryptocurrencies that are supported by public, permissionless, and pseudo-anonymous blockchains allow transactions to be tracked with very high transp ...
Login Get full Access5 Regulatory Notes
The standards and regulations concerning cryptocurrency are still under development. Although many different international policy institutions have pr ...
Of the countries that have not expressly forbidden cryptocurrency trade, there are two main categories of regulation that have been used to control it ...
The Financial Action Task Force (FATF) determined that convertible virtual currencies, and especially exchanges which facilitate the trade of virtual ...
Login Get full Access6 Impact on Payment Services
The payment services industry is a mix of legacy actors and new entrants, all with a different relationship to cryptocurrencies. Credit card companies ...
Payment service companies attempt to provide this flexibility in different ways. The legacy payment service Visa relies on a Bitcoin-specific physical ...
Implications and Reactions
The implications for the payment services industry is that many companies are changing their value proposition in order t ...
Login Get full Access7 Impact on the Financial Industry
The financial industry has largely dismissed cryptocurrencies as being a risky, speculative investment without viability as a means of exchange. While ...
Login Get full Access8 Potential Global Adoption
The upcoming launch of Facebook’s Libra is likely to significantly change the cryptocurrency landscape. Its low volatility, potentially wide userbas ...
Login Get full Access9 Recommendations and Conclusion
As long as cryptocurrencies remain a speculative investment asset, there will be no large impact for financial institutions. Mainstream cryptocurrenci ...
Login Get full Access10 Related Research
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Advisory Note: Demystifying the Blockchain – 80301
Leadership Compass: Cloud Access Security Brokers - 70614
Advisory Note: Big Data Security, Governance, Stewardship - 72565
Buyer’s Guide: Hybrid Cloud Services - 72562
Endnotes
- http://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf
- https://www.tradingview.com/markets/cryptocurrencies/global-charts/
- https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=15&cad=rja&uact=8&ved=2ahUKEwiC6amnwqXkAhXQ3KQKHeNjBukQFjAOegQICRAC&url=https%3A%2F%2Fwww.aeaweb.org%2Fconference%2F2019%2Fpreliminary%2Fpaper%2F4r9TeS37&usg=AOvVaw1ggy_Qa8uA5fsTKgYNMazr
- https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_627189/lang--en/index.htm
- http://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf
- https://www.eublockchainforum.eu/sites/default/files/reports/20181016_report_gdpr.pdf?width=1024&height=800&iframe=true
- https://www.loc.gov/law/help/cryptocurrency/cryptocurrency-world-survey.pdf
- https://www.americanbanker.com/news/why-chinas-mobile-payments-revolution-matters-for-us-bankers
- https://www.bankofamerica.com/online-banking/service-agreement.go
- https://www.jpmorgan.com/country/US/en/detail/1320574082929
- https://ciphertrace.com/q2-2019-cryptocurrency-anti-money-laundering-report/
- https://www.banking.senate.gov/imo/media/doc/Marcus%20Testimony%207-16-19.pdf
- https://www.project-syndicate.org/commentary/facebook-libra-inflation-control-problem-by-kaushik-basu-2019-06