Financial evolution cannot be explained without talking about Bitcoin.  People in business in any industry would identify their competition sooner.  They will analyze the strengths and move on with their proactive decisions before getting eaten up by competition.  The financial evolution put forth by cryptocurrencies are not ignorable anymore.

Investing in technological progressions like cryptocurrencies is becoming the need of the hour for any nation to stay in sync with time. The Brexit coming to light, the macroeconomic risks and the negative interest rates are creating a financial storm for the European Union.

Monetary authorities can see a meltdown, and they are not able to cope with it. However, they are aware of their weakness, and they are looking for ways to get things going.

Negative interest rates are creating social implications.  The ECB has declared a looser monetary policy, thereby cutting the interest rate in the Eurozone to a record low of -0.5%.

In the current scenario, cheaper money would not have any effect.  While the positive results are not visible, adverse effects like the distortion of asset prices and redistribution of wealth in favor of those who already own assets are seen.

Banks are beginning to feel the competition from tech giants and non-bank payment providers.  They can sense the weight of the competition from disruptive technologies. People are looking at frictionless real-time payments, and banks who provide this are going to enjoy compelling opportunities.

Cryptocurrencies are behind the many developments in payment systems that are currently taking place.

Yawar Shah, chairman of Swift, stated, “The financial industry is undergoing an extraordinary change, because of new entrants like Facebook’s Libra and the emergence of technologies like crypto assets.”

One of the recent tweets from Bitcoin Magazine read: “Bitcoin is not a debt-based system that periodically experiences bank run-like instability. In this regard, Bitcoin is an insurance policy against financial market instability. “

The SEC is expected to have a lot to do in terms of bringing in some regulatory clarity.

Commissioner Pierce noted, “There is work to do to make sure people can develop in compliance with our rules.” Further stating, it is “always better to have a clear way as to what is or is not permissible.”

Chairman Clayton stated that he would not completely shut the doors for token technology.  He clarified this stating, “to the extent this technology facilitates more access in a protected way.”