Can Cryptocurrency Wipe Away The Foreign Exchange Market?


If you are in charge of a company that does business on an international level, you know that it’s important to understand the ins and outs of the foreign exchange market. Each currency with which you deal will have a different value, and that value fluctuates based on supply and demand, geopolitical issues, the financial situation of each underlying country, and several other factors.

As a result, you have to make sure to keep track of the different values as you make purchases or sell goods to these various countries so that you can make sure that your business is coming out on the good side of the equation as often as possible. Otherwise, any foreign business that you do can actually hurt you in the long run.

The recent news about cryptocurrency and its increased usage among different parties might have those who deal with the foreign exchange market wondering what effect it will all have. After all, one of the most enticing parts about cryptocurrency is how it enables the different parties in a transaction to figuratively cross borders without having to worry about fees or tariffs. If cryptocurrency were to succeed on a widespread basis, would that conceivably end the foreign exchange market as we know it? Well, that’s a bit of a stretch, in part due to the strengths of the Forex and the limitations, at least at this point, of cryptocurrency.

If you utilise the Forex market and even trade on it consistently in the hopes of benefitting from arbitrage, you should check out HB Swiss for some potential automated assistance. And before you sound the death knell for Forex, there are many things you need to consider.

Regulatory Reluctance

The big drawback to cryptocurrency at this time is the reticence among governments and financial institutions to be upended by this new way of conducting financial transactions. Banks have already begun instituting measures to keep their customers from using cryptocurrencies if at all possible, while governments concerned about its usage by those looking to hide their actions, such as criminals, have begun cracking down as well.

Technology Gives & Takes Away

The blockchain technology that drives such popular cryptocurrencies such as Bitcoin and Ethereum is unique in that it provides a great deal of security for customers, who need not exchange personal information. But, because there is nothing physical involved such as paper dollars or metal coins, those using cryptocurrency are subject to the whims of systemic glitches.

Hand In Hand

What might occur is an increased usage of cryptocurrency by those wishing to participate in the Forex market. Those who do that, if they can time their trades right, might have the ability to score double, if the currency trade is successful and the cryptocurrency in question rises in value.

If your business operates internationally with any substance, you shouldn’t worry about things changing too drastically just yet. But it wouldn’t hurt to incorporate some sort of cryptocurrency undertaking to cover all the bases for the future.

Karthik Krishnan

Tech addict, the explorer, living with the internet. The passion for technology has never failed to fascinate in every stage of his life. He maintains his own blog Tripontech. Now, he regularly contributes to some of the popular magazines, sharing his experience with the world. His work has appeared in Huffingtonpost and