Impact on the Traditional Banking System
Let us recap the difference of cryptocurrencies and traditional currencies also known as fiat currencies. Fiat currency is a legal tender whose value is backed by the government issuing it. There are about 200 fiat currencies around the world. Typical characteristics of a fiat currency are as follows:
• These do not have any intrinsic value, but backed by the issuing state or government.
• These can be printed or minted as needed.
• The supply is not capped.
• The banks have legal obligations toward customers.
• A fraudulent transaction can be reversed.
• No Internet connection is required to use these.
• The system is an established one for centuries. (The first fiat currency is recorded to ...
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