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Given the Volatility of FX currencies (20%) and high costs of transactions, commissions and bank fees...

Given the Volatility of FX currencies (20%) and high costs of transactions, commissions and bank fees in transferring money (15%) can Bitcoin (or other digital or cryptocurrency) be economically beneficial in inter-bank transactions?

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Answer #1

The evolution of cryptocurrencies such as the Bitcoin and Ethereum has challenged the way money market operates. Bitcoin eliminates the need for intermediate verification of the money transaction and the transaction is very transparent. This reduces the transaction costs significantly, including bank commission and bank fees in transferring money. However, Bitcoin is significantly volatile compared to the FX currencies. Bitcoin poses other challenges as well as it is not tightly regulated.

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