Cryptocurrency unsuited for mass adoption - ING

Sandeep Kanihama FXStreet Contributor

The recent rise of the cryptocurrency market has gained some traction (and raised some eyebrows) across the investment community and DLT technology, in particular blockchain, has the potential to become part of the future infrastructure of finance and beyond, according to analysts at ING.

Key Quotes

“We see a promising future for blockchain. Cryptocurrency is a particular application of blockchain which could radically change the setup of the monetary system. However, we should issue a word of caution as cryptocurrency has some hurdles to clear before it can rise beyond the niche product it currently essentially is. Firstly, the absence of a central bank makes it difficult to deal with unforeseen crises. Secondly, liquidity conditions remain largely untested but, most importantly, more work needs to be done on trust and concentration. With so many uncertainties, cryptocurrency for now remains inherently volatile and hence unsuited for mass adoption, in our view.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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