In a recent report issued by the European Central Bank, the issue of legal digital currency (CBDC) may have a devastating effect on the existing financial system, and people will choose to convert assets into digital currency instead of depositing it in banks.
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The surge in Bitcoin in 2017 has attracted the attention of many media and investment circles and has pushed it to the mainstream. At the same time, the entire cryptocurrency sector is booming, making our lives more interesting, efficient and diverse.
In general, with the special currency as the emerging virtual digital currency, it breaks into the financial trading market in the form of “dark horse”. Compared with its current value, it is more attractive to its future.
But we should also see, headed by COINS are all kinds of digital currency impact on the existing financial order, and lead to a series of financial regulation, and the impact of the global financial industry norms.
On July 5th, a report released by the European Central Bank recently pointed out that the issue of legal digital currency (CBDC) may have a devastating effect on the existing financial system. People will choose to convert assets into digital currency instead of Deposited in the bank, “the digital currency issued by the central bank may replace bank deposits as the main form of currency holdings.”
The report pointed out that this move will cause major changes in the existing financial system. On the other hand, it may also force banks to reform and innovate, propose ways to replace the current reserve system, or replace deposits with more reliable sources of funds.