Cryptocurrencies: impact, benefits and dangers

On the other hand, cryptocurrencies have proposed a very promising means of transaction and validation: blockchain, a decentralized model that fits perfectly with emerging technologies.

Latent business danger?

The mere fact of raising the risks of cryptocurrencies demonstrates an attitude of fear towards a new technology rather than an attitude of curiosity https://norugpull.com/

The use of cryptocurrencies can have two dangers for the company, one as a currency and one due to legal uncertainty, the most serious in Ecuador. As a currency it has the danger of any other: that its value diminishes. Although it is true that cryptocurrencies are much more volatile than most currencies, any company that is used to operating with accounting with two or more currencies in cash has experience in handling these variations. To alleviate this danger, companies that handle cryptocurrencies must be attentive to market fluctuations to see when it is convenient for them to keep money in cryptocurrencies and when to sell it. In addition, there is already a futures market for bitcoin, which allows a hedge against fluctuations.

The biggest danger in Ecuador, both in cryptocurrencies and with almost all businesses, is regulatory uncertainty. The Monetary Code in its article 98.3 specifies that "The circulation and receipt of money not authorized by the Monetary and Financial Policy and Regulation Board is generally prohibited [...]." However, the Central Bank when it makes its public statements on the use of cryptocurrencies does not use this article but another (94) of much more dubious interpretation. And it does not seem that the Monetary and Financial Policy and Regulation Board has ruled in favor or against the use of cryptocurrencies, nor are there known (as far as I know) cases of arrest or action against cryptocurrency users in the country.

Corporate benefits

Companies have three possible benefits with the use of cryptocurrencies. The first, to receive payments more easily. It is clear that the more facilities a company has to receive payments, the better it will adapt to what users demand. In addition, in this case, an element of connection with the community that uses cryptocurrencies would be created.

The second benefit that companies can receive is to make transactions with cryptocurrencies, which in the case of international transactions, or transactions linked to an automatic execution contract (smart contracts), or transactions in the digital environment (video games, for example) can have many advantages over traditional means of payment.

The third benefit is that cryptocurrencies represent the natural means of payment in the “shared economy”, which represents a conceptual change regarding what the relationship with customers is and what the role of the company is.

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