Effect of crypto currency on the government backed currency

Abstract

Abstract. As international financial systems are becoming political tools to manipulate the exchange of money for good, cryptocurrency, and its potential to avoid the international banking system becomes more popular. Thus, the question becomes what happens to the nation's monitory system if cryptocurrency's electronic payment transaction and system replace the current system? Most nation's central bank controls the financial systems, which affect institutions, rules, regulations, and laws of the land that affect this system. Robinson (2016) suggests money as a commodity in the national scope. International banks use BIC for transferring money with each other. Cryptocurrency, so far, does not need BIC to transfer money from one location to another. Bitcoin, the system is a peer-to-peer internet currency allowing verified, and decentralized transfers of value between individuals and businesses. This article is a short introduction discussing the legacy money and cryptocurrency and the potential of cryptocurrency as a new currency and its possible implications.Keywords. Cryptocurrency, Blockchain, Currency, Money, Bitcoin, BIC, SWIFT.JEL. O30, O35, O36.