Bitcoin Can Serve As An International Foreign Exchange Platform

Jan 28, 2017 at 12:38 // News
Author
Jacob Okonya

With the continuous development and redefinition of the capabilities and possibilities that come with Bitcoin, some experts believe that an international foreign exchange market can be built around Bitcoin.

To be able to function as an international foreign exchange currency, the currency must be acceptable internationally and hold a fairly stable value. Bitcoin seems to be possessing all these qualities. Coinidol.com asked Finance experts for their thoughts on bitcoin being used as a currency of exchange on the international foreign exchange market.

With the available currency options on the international exchange market, is it necessary to use bitcoin in international exchange?

The US dollar is the most widely used currency on the international exchange market. Coinidol.com talked to Stephen DeMeulenaere, co-founder at Coinacademy, a website that provides Bitcoin, blockchain and cryptocurrency training, about what he thinks of the usage of bitcoin for international foreign exchange and this is what he had to say.

“It's not necessary to use Bitcoin in foreign exchange markets if one is happy trading the currency pair, but it is a very useful option to add to the mix, as it is the only non-state currency currently offered on foreign exchange markets.”

Does Bitcoin meet the requirements to serve as a chief medium of exchange for international foreign exchange?

Whether Bitcoin could or could not be fit for use as a major currency on the international trade exchange is an important question. Coinidol.com spoke to Larry Christopher Bates, Chief Cybersecurity Officer at Bitland, a Global organization that digitizes land titles using blockchain technology, about what he thinks about the idea of using bitcoin as a major currency on the international exchange market. And this is what he had to say:

“I do not believe it is fit to be the chief, however I believe if there is an IMF joint basket of commodities or currencies backing it as reserves established by international bodies, in THAT form it would be ideal. Only with actual reserves attached to it will it be fit to be a chief medium for exchange.  A run on the token would destroy the global market if it was chief without reserves”

How secured and appropriate would bitcoin be as a chief medium of exchange on the international foreign exchange?

To be able to serve as an international foreign exchange platform, the security and general acceptance of the currency should be proven. We spoke to DM Suja, CEO at Currencydigital, a bitcoin consultancy, and asked him if bitcoin possesses these features.

He commented: 

“It would be more secure than the banks and current systems.  The cryptography of the blockchain provides an almost hack-proof system, especially at a high enough scale.”