ING kick off the report explaining how the governments and Central Banks around the world are worried about the implications of Libra on traditional banking.

They also talk about the potential advantages to the stablecoin technology in regards to efficiency and cost. 

 Their immediate concerns relate to the disintermediation of the traditional banking system and the potential loss of monetary sovereignty

One of the main points of the reports comes from the fact that remittances could be an immediate use case for digital currencies.

The bank point out: The global remittances market reached USD 689 billion in 2018 and will grow beyond USD 700 billion by the end of this year, according to World Bank estimates. They then point out the global average cost of sending remittances currently stands around 6.84%, which is relatively high.

ING then focus on one country, in particular, saying that Ukrainian workers will send some USD 16 billion (11.8% of Ukraine’s GDP) back to their home country this year.

Moreover, the total average cost for sending USD 200 of remittances from the US to Ukraine stands at around USD 9.90 (or 4.95%). This includes both the transaction fee and the exchange rate margin cost.

The launch of either a private or a publicly-issued digital currency (e.g. the National Bank of Ukraine conducted an e-hryvnia pilot this year already) could compress both costs, which would offer Ukrainians another (digital) channel to send their remittances back to their home country. And if digital currencies are accepted by retailers at point-of-sale and on e-commerce platforms, this could in theory diminish dollar demand

This is a massive call from the Dutch bank. This is the main area of backlash amongst central banks and governments in my opinion. A world without a direct dollar reserve currency would have huge implications on traditional banking and finance. Maybe the US will create a Central Bank Digital Currency first, only time will tell.



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Crypto Today: Calm between the storm? Schiff says look out below, Dash, Monero stand out

Bitcoin in mid-range, BTC/USD is trading just below $7,400 after experiencing rises and falls of hundreds of dollars within days. Peter Schiff, a life-long crypto skeptic, said that pumpers and dumper have lost the plot, and added: "Look out below".

More Cryptocurrencies News

Ethereum Price Analysis: ETH/USD bumps into $148.00, waits for new drivers

ETH/USD has recovered to $148.00 on Thursday; however, the upside momentum has faded away during early Asian hours. The second largest coin with the current market capitalization of $16.2 billion has settled in a tight range limited by $148.00 on the upside.

More Ethereum News

Monero Price Analysis: XMR/USD rises from the ashes

Monero is arguably the biggest single-digit gainer on the first Friday of December. The crypto has increased in value by 2% on the day after opening the trading session at $55.01. 

More Monero News

Bitcoin Cash price analysis: BCH/USD market momentum turns from bearish to bullish

BCH/USD is on course of charting its second straight bullish day. Currently, the price has gone up slightly to $211.75 and is floating below the 20-day Simple Moving Average (SMA 20), SMA 50 and SMA 200 curves. 

More Bitcoin Cash News


Bitcoin Weekly Forecast: It's all about whales again

On the cryptocurrency market, regulators, governments and central bankers and other big names like that are inferior to whales when it comes to generating trends and price movements.

Read the weekly forecast