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Cryptocurrencies: the monetary revolution is underway
3.30pm ▪ 4 minute read ▪ by Mikaia A.
Ladies and gentlemen, take a seat and take a tour of the exciting world of digital assets. KPMG has deployed its antennas to capture signals from rapidly evolving financial markets. This report takes stock of the ongoing revolution, where cryptocurrencies, stablecoins and CBDCs (central bank digital currencies) are redefining the rules of the game.
The emergence of digital assets
In this corner of the financial Wild West, cryptocurrencies are the new sheriffs. Bitcoin (BTC) and its companions they play the cowboys of the economy, distinguishing themselves by their volatility but also by their disruptive potential. KPMG, in its “Digital Money: Market Outlook from the Entire Digital Asset Ecosystem” reporthighlights that these digital assets have gained credibility, attracting institutional investors.
The financial giants can no longer ignore them. However, the Wild West remains dangerous: regulation is uncertain, oscillating between permissiveness and rigorous control. Legal uncertainties have not slowed the momentum, but could represent a major obstacle if they are not clarified.
Cryptocurrency, to be honest decentralized nature decentralizedforces authorities to reconsider their approach, juggling innovation and consumer protection.
Stablecoins and their quest for stability
Like tightrope walkers, stablecoins try to do this combine the stability of traditional currencies with the innovation of cryptocurrencies. Their promise? A stable value supported by real assets. KPMG reveals it these tools are gaining momentumespecially for daily transactions and international trade.
However, this thread is thin and the the risk of falling is always present. THE crypto-Earth scandal, whose value has plummeted, is still fresh in everyone’s memory. Regulators are carefully scrutinizing these new financial creatures, ready to intervene to avoid them a domino effect on the global financial system. The time of maturity is approaching for stablecoins and they will have to demonstrate their robustness to resist.
CBDC and monetary reinvention
The latest innovation: central bank digital currencies (CBDCs). These state bodies want to take the reins of the digital revolution. Unlike anarchic cryptocurrenciesCBDCs are overseen by monetary authorities, promising safety and regulation.
KPMG highlights pilot projects underway since China towards Europe, where each country tries to carve out its own niche. CBDCs could transform monetary policy and payment systems, but their implementation poses technological and ethical challenges. Privacy, cyber security, financial inclusion: the questions are numerous. CBDCs may well be the secret weapon of States to maintain their monetary sovereignty in the digital age.
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The battle for the control of the money of the future it’s just begun. Between wild cryptocurrencies, razor-thin stablecoins, and regulated CBDCs, the digital asset ecosystem is a complex and ever-evolving playing field. KPMG offers us an accurate x-ray of this financial jungle, where every actor tries to find their place under the watchful eye of regulators.
A spectacle to watch carefully, as the outcome of this battle will shape the economy of tomorrow.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.