Cryptocurrency can increase prosperity: ABN Amro
ABN Amro believes that digital currencies can lead to a greater level of prosperity. According to the bank, cryptocurrencies can improve productivity and boost economic growth, especially in developing countries, making the financial industry more efficient.
The bank points out that many central banks are investigating the possibility of their own digital currency, or 'central bank digital currency' (CBDC). Another new form of digital money is stablecoins, cryptocurrencies that are linked to a fixed exchange rate. Once regulated stablecoins or CBDCs establish a reliable payment system, they can provide users with access to banking services and products, the bank said.
ABN Amro said that digital coins' blockchain technology could increase economic value because information provision is more efficient. Certain services or intermediaries are no longer necessary. This technology also allows commodities, consumer goods, financial instruments, or legal matters to be broken into smaller parts. According to the bank, this makes it easier to raise or trade financing.
Reporting by ANP.