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Crypto: The monetary revolution is underway
3:30 p.m. ▪ 4 min reading ▪ by Mikaia A.
Ladies and gentlemen, settle in for a ride into the exciting world of digital assets. KPMG has been spreading its antennae to pick up signals from rapidly changing financial markets. This report takes stock of the ongoing revolution, where crypto, stablecoins and CBDC (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 playing the cowboy of the economy, distinguishing themselves by their volatility but also by their disruptive potential. KPMG, in its “Digital Money: Market Insights Across the 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: the regulations are fumbling, oscillating between permissiveness and strict control. Legal uncertainties have not slowed momentum, but they could pose a major obstacle if not clarified.
Crypto, by its decentralized nature decentralizedforces authorities to rethink their approach, juggling innovation and consumer protection.
Stablecoins and their quest for stability
Like tightrope walkers on a wire, stablecoins seek to combine the stability of traditional currencies with the innovation of crypto. Their promise? A stable value backed by real assets. KPMG reveals that these instruments are gaining momentumespecially for daily transactions and international trade.
However, this wire is thin and the the risk of falling is omnipresent. THE Terra crypto scandal, whose value has collapsed, is still fresh in everyone’s memory. Regulators are closely scrutinizing these new financial creatures, ready to intervene to avoid a domino effect on the global financial system. For stablecoins, the time of maturity is approaching, and they will have to prove their robustness to survive.
CBDC and monetary reinvention
Latest innovation: central bank digital currencies (CBDC). These state entities want to take the reins of the digital revolution. Unlike anarchist cryptocurrenciesCBDCs are supervised by monetary authorities, promising security and regulation.
KPMG highlights ongoing pilot projects China in Europe, each country seeking to carve out a niche for itself. CBDCs could transform monetary policy and payment systems, but their implementation poses technological and ethical challenges. Privacy, cybersecurity, financial inclusion: the questions are numerous. CBDCs could well be the secret weapon of States to maintain their monetary sovereignty in the digital age.
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The battle for future money control is just getting started. Between wild cryptos, tightrope stablecoins, and disciplined CBDCs, the digital asset ecosystem is a complex and constantly evolving playing field. KPMG offers us a precise x-ray of this financial jungle, where each player tries to find their place under the watchful eye of regulators.
A spectacle to watch closely, because the outcome of this battle will shape the economy of tomorrow.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.