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Crypto currencies and financing opportunities
Crypto currencies by essence can grow even without regulation or any role of a central bank or government.
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Crypto currencies by essence can grow even without regulation or any role of a central bank or government. (Shutterstock/File)
A
s interest in Bitcoin, an internationally used virtual currency, has grown one should spend some time analyzing this aggressive pace of development and revisit how best to utilize this platform. A closer look at how it potentially addresses some structural financial intermediation issues might be one area to examine for Indonesia.
Many people address crypto currencies as a type of currency. The difference from normal currencies is that they use cryptography to create secure transactions as well as to control the generation of more currency units. Cryptography itself stores and transmits data in a particular form so that only intended people — in this case people who transact — can read and process it. So technically, a crypto currency is sort of a really well-managed, very safe database that has been used for extensive purposes.
Originally, crypto currencies were invented with the intention of creating an alternative to currencies issued by governments, which were regarded as less time and cost efficient.
As the digital economy grows people are starting to recognize the benefit of these alternative currencies as they make transactions even faster, more cost efficient, as well as being done in a way that does not include sharing our personal information with a third party.
