Money, which has gained a new dimension with the emergence of destructive technologies, undergoes a unique evolution. Money, which has taken shape over the years but never lost its importance, has to keep up with the changes in digital innovations. The rise of digital currencies powered by blockchain technology also raises the question of how it will shape the concept of money in the near future.
The phrase “cryptocurrency”, which is formed by combining the words cyrpto and currency, basically means crypto money. Cryptocurrency; It refers to the virtual currency used through the internet, not affiliated with any central authority or intermediary institution. Individuals and institutions can spend or accept these currencies like real money. Cryptocurrencies are not in print and tangible like other known currencies.
Bitcoin, the most known cryptocurrency and known to be founded by Satoshi Nakamoto; It is defined as digital money consisting of software with open source code that can perform money transfers without the need for any financial institution. Since it is completely digital, there is no need for its physical representation. Cryptocurrencies such as Bitcoin are becoming more and more popular, as they have very low transaction costs, can be used globally, and are becoming a safe and valuable tool with increasing usage area day by day. Bitcoin can be exchanged for other currencies at any time.
In these days when the discussions on cryptocurrencies and digital assets continue intensely, the effects of a great transformation in the financial sector have started to be seen despite all the discussions. The belief that crypto money, which has become the favorite of large companies and investors, will be the currency of the future is increasing.
A survey of finance professionals and industry executives by Deloitte supports this trend. 76 percent of financial industry experts surveyed think that digital assets will replace government-backed fiat currencies or become a strong competitor in the next 5 to 10 years. With the increasing interest in cryptocurrencies, more and more money is being converted into an investment tool as a digital asset. This causes both corporate companies and individual investors to adopt this new investment tool more. The report states that banks should accept and embrace this digital transformation that awaits them in the future.
“Participation in the era of digital assets is not an option, it’s inevitable. It remains only for leaders to decide how to use digital assets and the new global financial services infrastructure to their advantage,” the report states. Survey respondents think that financial services companies need to move with the trend of cryptocurrencies, digital assets and blockchain. In addition, more than three-quarters of participating financial professionals think that if their companies do not adopt blockchain and digital assets, they will miss a chance to make a splash against their competitors.
Another issue that the survey sheds light on is the fact that despite this requirement, the transition to digital assets will not be that easy due to existing infrastructure problems. While 65% of respondents said the lack of financial infrastructure for crypto is the biggest barrier to transitioning to digital assets, risks around cybersecurity, regulatory issues and the need to protect privacy are also cited as critical barriers.