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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

XRP Price Prediction: Ripple might retrace before heading higher

XRP price saw a swift breach of the overhead supply barrier, flipping it into support. This move indicates the presence of buyers; therefore, it is likely Ripple will continue to head higher.

More Ripple news

Citigroup launches digital asset unit to offer crypto services for wealthy clients

Wall Street firm Citigroup is the latest institution to offer crypto services for its rich clients. The global bank launched a new business unit dedicated to the new asset class and the blockchain space.

More Cryptocurrencies news

Litecoin Price Forecast: LTC offers a compelling opportunity above $146

Litecoin price is trying to recover support at the 50-week simple moving average (SMA) as LTC now trades in the upper half of the weekly range. The rebound has channeled minimal interest as daily volume has shrunk every day.

More Litecoin news

Ethereum EIP-1559 upgrade launches on Ropsten testnet as London hardfork nears

One of the most anticipated updates for the Ethereum network in 2021, the London hardfork scheduled for July, includes a controversial Ethereum Improvement Proposal (EIP) 1559. Ethereum core developer Tim Beiko announced that the London hardfork was ...

More Ethereum news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP