Fitch Rating Says Crypto Is Far from Mainstream but Holds Great Potential for the Future
Several years have gone by with the same word on everyone’s lips: will cryptocurrency replace the traditional financial system? This topic could not be more relevant in today's world. A leading provider of credit ratings expressed its views on the matter. According to specialists of Fitch Rating, digital currencies would have little or no impact on credit policy in the near term. But here comes a "but". They can help with the upgrading of the financial system later.
The researchers recognized that magic internet money has come on leaps and bounds over the past few months. We will remind you that PayPal turned over to the clients the ability to use cryptocurrency. Visa and Mastercard had not remained immune from change. The companies will allow users to conduct operations with the high-yielding alternative asset class. Nevertheless, we are a long way off from the wide adoption of crypto.
PayPal's option of buying and selling virtual assets is one of the first real and large-scale cryptocurrency use cases in the United States. Fitch Rating’s analysts stressed:
"We doubt that investing in electronic currencies will have a considerable impact on the credit profiles of citizens, given the low level of investment and the long growth time. However, the possibility of dealing with such assets offers new ways for companies to generate revenue, even if the return on investment is not determined."
Analysts agree that decentralized digital money and blockchain can improve the financial system in the future. They are powerful enough to speed up calculations, reduce commission, cut out the middleman. But for full adoption, we have to ensure adequate regulation of cryptocurrency.
Earlier Gartner, the world’s leading research and advisory company, expressed confidence that centralized payment companies will have to integrate stablecoins for payments and transfers.
At the extreme end, we would like to add that cryptocurrency isn’t going anywhere. The genie is already free. As much as you'd like to put it back in the bottle, there is no way to do it. Magic internet money is not a currency for the government. It's a global currency for the people. By investing in it, you can become a part of the future currency revolution (if you believe).
At the same time, it’s important to remember about the potential risks associated with the use of crypto. You can protect yourself by refreshing in memory our tips. Good luck!