Fiat

Decentralised Finance (DeFi) saw exponential growth in 2020 and 2021 promises to be yet another defining year. What’s particularly exciting is how DeFi has coincided with broader trends in banking and the rise of fintech 2.0 and neobanks.

General digitization has brought most of the world's population online. Most operations from virtually all walks of life, including payments, are going digital. Therefore, wallets have also gone digital. Storing money in a pocket is a relic of the past.

The issue of central bank digital currency (CBDC) is becoming a hot topic of discussion among several governments. Now, the government of South Korea is seeking better technologies that can effectively lead to the creation of their state-owned CBDC dubbed e-KRW.

No trader is immune from risks and losses when trading cryptocurrencies. Investors have to put up not only with the high volatility of coins, but also with the various fees that crypto exchanges charge. If someone doesn’t correctly plan out their trades, then the cost of commissions can quickly absorb a significant portion of profits.

The inflation in Turkey is currently at about 16.2% and this is corroding the lira’s value. The Turkish citizens are now frustrated with the economic turmoil in the country and are now seeking safe haven in cryptocurrencies. Small businesses have now started to accept payment in Bitcoin, and this has pushed its price high to make a new record high of over $63,000.

This decade has witnessed a high wave of central banks wanting to make digital versions of their fiat money, also called the Central Bank Digital Currency (CBDC) following the success of cryptocurrencies. Thailand just announced it would be unveiling its own CBDC next year. What shape does the race take after then?