OctaFX takes a look at the race for monetary supremacy: Blockchain vs Legacy Finance
LUMPUR, MALAYSIA - Media OutReach - 14 October 2021 -There is
hardly anyone left who is not familiar with the bitcoin bull market. A few but
dramatic corrections made this historic run more exciting. Blockchain
technology is here to stay. And the way legacy institutions and governments
react will determine the future of finance. The global broker OctaFX prepared
an expert article exploring whether peaceful co-existence might be an option.
The U.S. and bitcoin:
teasing as a sign of affection
America is slowly but surely approving bitcoin as a credible long-term
investment and even payment method. Elon Musk's electric vehicle manufacturer
Tesla temporarily granted selling its cars for bitcoin. Elon Musk is known for
his advocacy for new technologies and his interest in blockchain. Popular
online payment service PayPal started offering cryptocurrencies to get into
this emerging market. Social media platform Twitter recently launched tipping
in bitcoin for followers to support their influencers financially. It is worth
keeping in mind that even Goldman Sachs, which until very recently
underestimated bitcoin publicly and showed expert distaste for the opinion that
cryptocurrency would be a powerful investment, changed its position.
influential multinational investment bank, having close ties to the most
powerful governments in the world, announced in March 2021 a 'full-spectrum'
cryptocurrency investment offer, including bitcoin, for its private clients.
the narrative from U.S. governmental institutions suggests a different
Treasury Secretary Janet Yellen said she is eager to crush the influence of
cryptocurrencies by pushing International Monetary Fund (IMF) capacities
further. Many financial experts consider the IMF to be the future issuer of a
new worldwide digital currency—centralised, of course.
Who are the new kids on
finance (DeFi) and so-called 'smart contract' platforms on blockchain networks
have many runner-ups: Ethereum is the most used network and the first of its
kind. But lack of scalability and high transaction fees give Ethereum's
competitors a chance to succeed. Polkadot, Cardano, Cosmos, Harmony and others
have significant potential to solve these systemic weaknesses.
DeFi marketing slogan for the crypto sphere is about 'helping the masses of
unbanked people', for instance, in Africa, Asia, and South America. It gathers
significant trust in these populations over classical banking institutions.
14 April 2021, Coinbase, the most prevalent cryptocurrency exchange, was
directly listed on the Nasdaq exchange. This move indicates even more mixing of
crypto and traditional finances and implies a rising future influx of retail
investors into crypto assets.
A win-win for Forex
of the transition's nature into this advanced future financial order, Forex
brokers need to adapt to this new vibrant parallel development—staying competitive
and relevant in the long term. The ability to offer the most popular and
influential cryptocurrencies means that a broker keeps significant doors open
for new demographics. But this is also crucial to stay with legacy currencies.
Their centralised successors, which the IMF, FED and others already plan to
launch as digital counterparts to their crypto challengers, should not be
The worldwide financial system is ripe for significant paradigm
shifts, which will ignite even greater competition
between centralised and decentralised systems and their services. But Forex
brokers, like OctaFX, are already taking on the
exciting task of offering the best of both worlds, building long-term trading
relationships with their growing client base—with the best of conditions.
OctaFXis a global Forex broker that has provided online trading
services worldwide since 2011. It offers a state-of-the-art trading experience
to over 7 million trading accounts worldwide. The company is well-known for its
social and charity activity, supporting infrastructure and humanitarian
projects in many joint ventures. OctaFX has won more than 45 awards since its
foundation, including the 2021 'Best Forex Broker Asia' award and the 2020'
Most Transparent Broker' award from Global Banking & Finance Review and
Forex Awards, respectively.