The market analysts and the financial expert at the Finance Association of the UK have recently published a report on the impact of cryptocurrencies on the economy. The report suggests that cryptocurrencies are a good alternative for replacing traditional money transactions. The source of the report is the International Association of Money Transfer Networks (IAMTN).
The publishers of the report took a detailed view of blockchain technology and its underlying benefits. The report suggests that cryptocurrencies are ideal for remittance purposes, and it is possible to settle a remittance payment instantly, which will eliminate the need for banks and allow consumers to benefit from smaller overseas transaction costs.
It is worth noting that the report published by IAMTN that reflects favorably on cryptocurrencies is also backed by major financial giants. The main reason for the support for this report is that several financial organizations wish to offer consumers internal money transfer options and take the centralized, regulated service into the private sector.
The report also noted that blockchain could open many doors for improving cross-border payments and ensure that it becomes the next international standard. Not only the international money transfer is done in instants, but it also reduces the transaction fees for these transfers by many folds. Additionally, the developers of the blockchains do not have to get in hefty lines of approval and verification with the centralized banking system or the financial regulators.
The IAMTN report has warranted that blockchain technology can benefit the growth of the economy by facilitating cross-border payments. However, the report also acknowledged the ongoing regulatory obstacles that blockchain-related organizations have to face. The report claimed that when a financial network has to comply with hefty government regulations, its services can become more expensive.
The report also pointed out that the regulatory infrastructure in the country is largely antiquated and does not have a lot of room for innovative technologies like blockchain. On the other hand, blockchain adoption is also hindered by issues like lack of awareness, literacy, and accessibility. The report has urged financial regulators to introduce policies to ensure faster adoption of blockchain-related services.