Bitcoin (BTC) was created for endless reasons. One of them, that its background technology, the Blockchain, help humanity in all possible fields. Today, in the midst of this new world crisis due to the Coronavirus, we ask ourselves: How can Blockchain help the financial system?
With Bitcoin in the lead, cryptocurrencies were born looking like a joke, and today they continue to become not only the answer to many of the mistakes of the traditional financial system, but also their possible mass alternative.
Bitcoin was meant to equalize the financial playing field, eliminate intermediaries like banks, and perhaps even replace fiat entirely. But, its very volatility and absolute decentralization raised the fears of many investors, and regulators.
How can Blockchain help the financial system?
Years ago, unlinking the word Bitcoin, illegality and Blockchain was very difficult. Today, to everyone’s fortune, these 3 elements have been untied. Each of them does not need presentation, since both Blockchain and cryptocurrencies are topics mentioned daily at all levels, not only in finance.
To the disappointment of the most optimistic, reality has shown that neither the banks nor the fiat money will go away in the near future. Well cryptocurrencies and Blockchain technology does not currently represent a short-term risk to traditionalism.
But, what is happening around the world is that the financial system has increasingly incorporated Blockchain technology into its daily business. Some have even added services for those retail users who own Hodls, and also for large investors.
Blockchain technology allows systems to leave the archaic banking bureaucracy off the game board. The one that prioritizes the wealthiest and those characters from the big economies over everything else.
By eliminating the intermediary, people are allowed to avoid the high fees, interest rates, and other restrictions imposed by traditional financial institutions.
As we have said, Blockchain can help the Latin American financial system. Well, our region, unfortunately, fits the reasons why Bitcoin and the blockchain were created as a ring to the finger.
Difficult access to international financial markets by the majority of the population, a centralization that entails a monumental loss of efficiency, an inequality that worsens over the years. Coupled with recurring inflationary problems and authoritarian governments that play with their inhabitants as they see fit.
The key is not in overthrowing traditional financial institutions, but in adapting them to Blockchain technology, which is far superior to the IT systems that preceded it.
Although, the reality is that the traditional financial system of our region is very far from adapting these new technologies for the well-being of the majority. For this reason, the use of 100% pure cryptoverse in our region has become so widespread.
Our system still struggles with problems that other continents have long since overcome. Perhaps, together with Africa, we are the continents with the most problems, so absurd that they have become our daily lives.