The widespread adoption of digital currencies is likely to boost the economy in many ways. For example, in a study by the Bank for International Settlements (BIS), eighty-six percent of banks are actively researching digital currencies. Another sixty percent are testing them. In the U.S., the Federal Reserve is still evaluating the potential role of digital currencies. The European Central Bank president has said she wants to see the euro in a digital form by 2025. The financial sector estimates that by 2027, a fifth of the world's population will use a central-bank digital currency. By 2027, $24 trillion of assets are expected to be held in a digital form.
The widespread adoption of digital currencies will help governments fight financial malfeasance. This will make asset transfers across borders smoother, while also giving central banks a direct avenue to interact with citizens. The widespread adoption of digital currencies can help governments cut operational costs. These costs, which are estimated at $350 per person a year, could be eliminated overnight. Furthermore, if a government adopts the new currency, the costs of operating the financial industry could be dramatically reduced. In Hong Kong, for example, the government plans to eliminate all cross-border transaction fees in an instant.
As Bitcoin's adoption continues to grow, the possibility of government policy and value controls is greatly reduced. As the adoption of bitcoin cash and other cryptocurrencies increases, these technologies will become more widely accepted in the global financial system. According to the Cambridge Centre for Alternative Finance, the majority of bitcoin users will be automatically owning Bcash. In addition, several exchanges and wallets are already implementing support for Bitcoin Cash and ethereum tokens, such as Gatecoin in Hong Kong.
Digital currencies could help governments combat the threat of malfeasance and improve the global financial system by making it easier for citizens to switch currencies. Moreover, they can help governments reduce the costs of managing foreign exchange deposits, which currently account for more than $50 billion of global GDP. In addition, lower cost of digital currency may encourage consumers to switch currencies. In addition, it is expected that the adoption of digital currency will also reduce the costs of transacting.
The adoption of digital currencies can help governments combat malfeasance and enable central banks to work directly with citizens. The adoption of digital currencies can help governments cut operating costs of the global financial industry, which account for about $350 per person annually. The elimination of cross-border transaction fees could eliminate these costs in a flash. It is essential to have a secure and regulated system to prevent fraud and corruption.