The likelihood is that you’ve probably heard contrasting things about cryptocurrencies, but there is no denying how they have revolutionised the modern financial landscape. Revenue in the UAE Crypto market is projected to reach US$292.10m in 2024 thanks to the transformative role cryptocurrency has played in blockchain technology and streamlined monetary exchanges.
Cryptocurrencies present new investment opportunities and offer broader access and more efficient transaction times. As this digital financial evolution continues to decentralise traditional banking systems, there has been an emphasis on security, transparency and speed.
Here are 4 key insights regarding crypto’s role in the future of finance:
Bitcoin
Bitcoin is not only one of the first but most well-known types of cryptocurrencies due to an increase in mainstream acceptance and value in recent years. Initially introduced in 2009, Bitcoin’s value was less than a penny, but it has since attracted the attention of investors and returned more than 230% during the 10 years ending March 2021.
The popularity of trading Bitcoin has challenged traditional financial institutions by offering a decentralising yet a secure alternative to the usual financial services. It eliminates the need for a middleman by allowing peer-to-peer transactions and has led to the development of software that can store, send and receive cryptocurrency.
Central Banks Embrace Digital
Naturally, central banks are not the biggest advocates of cryptocurrencies however many institutions have been asking themselves whether it is time to embrace this new technology. The banking industry has had concerns over the safety and stability of cryptocurrencies and expressed doubts about it becoming part of mainstream payment systems.
The potential for cryptos to be used by central banks to regulate and monitor stable cryptocurrencies for the economies they protect is beginning to be realised.
New Crypto Regulations
To make more headway in the regulation of crypto assets, the Financial Conduct Authority has set out new regulations that every crypto business is expected to follow. They will now be required to collect, verify and share all information about crypto asset transfers and take all reasonable steps to fully comply with the ‘Travel’ rule when sending or receiving crypto assets.
Increased safeguards and policies reduce the risk of fraud and misconduct that can negatively impact investor returns. In turn, this boosts mainstream acceptance and innovation within the sector.
Investment Opportunities to the People
For those looking to expand their financial portfolios beyond traditional markets, cryptocurrencies offer diverse and exciting investment opportunities for investors. Not only can crypto offer the potential for high returns but individuals can take control of their assets using new financial platforms such as funded trading programs.
While there are some risks to consider, cryptocurrency is a smart investment if you believe that cryptocurrency usage will become more widespread over time.
