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<p>Various crypto products get deeper into our lives. What&#39;s their place in  the world of finance now, and what to expect in the near future?</p><p>The creation of <a href="https://www.entrepreneur.com/topic/cryptocurrency" rel="noopener noreferrer nofollow">cryptocurrency</a> has brought a revolution to the financial market. Without any physical  equivalent, a huge infrastructure was created in which billions of  dollars were invested. Of course, it doesn&#39;t end there. Digital  currencies will take their place in economic history more than once.</p><p>There  are severe preconditions for that, but they also have weaknesses. Let&#39;s  examine if we can expect crypto projects to replace the <a href="https://www.entrepreneur.com/money-finance/crypto-vs-banking-which-is-a-better-choice/399503" rel="noopener noreferrer nofollow">traditional banking system</a> or if this is just an ever-optimistic vision.</p><h2 id="header-0">Current crypto position in global finance</h2><p>In most areas,  traditional financial tools are still prevalent. Payments with  cryptocurrencies are very complicated because there is insufficient  infrastructure. Transfers to bank cards are available, but paying for  purchases with crypto funds at the store is still impossible. The  corporate segment is loosely involved in the crypto market, and people  keep using classical bank loans and receiving a salary in the form of  fiat money.</p><p>But that is the point of the enormous potential for  the development of crypto, especially since it has several undeniable  advantages:</p><ol><li><a href="https://www.entrepreneur.com/business-news/5-decentralization-trends-to-watch-in-2020/347994" rel="noopener noreferrer nofollow">Decentralization</a> entails a lack of boundaries for financial operations and customer  service, wherever they are. This is the most significant difference  between the crypto market and the classic one, where some local  restrictions often bind companies.</li><li>Crypto operations pass almost  instantly, and the cost of billions of dollars in transfer can be  cents. And all this without compromising safety!</li><li>There is a whole layer of people who already use cryptocurrency as <a href="https://www.entrepreneur.com/money-finance/adding-crypto-to-your-retirement-planning-is-easier-than/401615" rel="noopener noreferrer nofollow">storage for savings</a>.  One can keep money in a bank account, but there may be restrictions on  its use. Keeping the cash could be a problem when exporting funds to  other regions. Cryptocurrencies allow one to hold and manage money  wherever the person is located.</li><li>It&#39;s not yet possible to  completely get rid of anonymity. This is at the same time, a strength  and a weakness. A person can make transactions and maintain  confidentiality in good order. But it may also be used by organizations  raising funds for illegal operations. Conditions will be tightened;  companies will be regulated. But there will still be space for actions  that are difficult to track.</li></ol><h2 id="header-1">Such a much-needed regulation</h2><p>It took the crypto market ten  years to form. While it wasn&#39;t huge, regulators didn&#39;t get much  attention. When the market has grown, some concerns have been raised.  Almost anyone can create a website, pretend to be a crypto bank, then  take all the money and just dissolve.</p><p>Not so long ago, the market suffered a collapse of <a href="https://www.entrepreneur.com/business-news/wanted-by-several-countries-crypto-fugitive-is-nabbed-in/448282" rel="noopener noreferrer nofollow">Luna</a>, <a href="https://www.entrepreneur.com/news-and-trends/celsius-network-files-for-bankruptcy-customers-unlikely-to/431460" rel="noopener noreferrer nofollow">Celsius</a> and even <a href="https://www.entrepreneur.com/business-news/ftx-meltdown-tanks-crypto-ecosystem-and-customers-wallets/438814" rel="noopener noreferrer nofollow">FTX</a>.  People lost more than $100,000,000,000! Cryptocurrencies stopped being  just toys. Therefore, regulators must keep track of assets and balances,  how companies use them, and in which countries such services are  provided. Сentralized services have legal entities, an understandable  product in the territory of a particular region. Decentralized services  may exist without a legal entity at all.</p><p>The crypto industry is set to be <a href="https://www.entrepreneur.com/money-finance/regulation-is-coming-to-the-crypto-business/385175" rel="noopener noreferrer nofollow">very much regulated</a> in the next 3-4 years. Some companies will leave the market, and the  remaining ones will be even stronger. There will be standards — in the  first place — for central banks, various depositaries and requirements  for opening an account and mandatory declaration of cryptocurrencies. A  lot will happen in the decentralized part of the market, but a little  more slowly because this sphere is much smaller in volume.</p><p>As long  as it&#39;s currently an unregulated arena, there are so many doubts and  prejudices. But companies and people are going to realize in which  system of coordinates they live and be legally able to keep, exchange,  sell and issue cryptocurrencies.</p><h2 id="header-2">Skepticism and how to beat it</h2><p>Most  people perceive cryptocurrencies as an instrument to increase revenue —  the truth of this may be growing quickly. But the market is much  broader than <a href="https://www.entrepreneur.com/money-finance/8-smart-ways-to-analyze-crypto-token-before-investing-in-it/352885" rel="noopener noreferrer nofollow">tokens</a>. Speaking of cryptocurrencies, here&#39;s how they can be divided:</p><ul><li>Stablecoins that are pegged to fiat currencies: euro, dollar, yen, and so on.</li><li>Cryptocurrencies  that are tied to the tokenomics of some products. This is comparable to  the release of the company to IPO: when it goes public, the value of  shares depends on the company&#39;s financial and production indicators. The  better results, the more sales of tokens and the price.</li><li>Digital  assets that are pegged to any real objects. It&#39;s so-called  tokenization. Everything may be tokenized: art, metals, properties, etc.  This is indeed an opportunity for centralized sales of products that  couldn&#39;t be split or sold before.</li></ul><p>The same regulation will  help to set aside skepticism about all the crypto mentioned above  products. And when people realize that everything is strictly within the  law, no funny business, they will begin to trust the market more.</p><h2 id="header-3">Expected changes in the coming decade</h2><p>Over the next 10-15 years, cryptocurrencies will play a crucial role in most of the world, probably in the following directions:</p><ul><li>International settlements.  Cryptocurrencies have a high level of transaction reliability,  primarily through blockchain technology. It has already prevented many  adverse events due to the possibility of rolling back operations. There  are still many other technologies that are being created for more  safety. So, it&#39;s highly expected that transactions will become more  convenient, transparent and less expensive.</li><li>Сreating a CBDC.  More than 20 countries already produce central bank digital currencies  and follow a path to complete untethering of classic money. Thus,  wide-ranging opportunities open up to expand control for states and  banks worldwide. Most of them will switch to using <a href="https://www.entrepreneur.com/topic/cbdc" rel="noopener noreferrer nofollow">CBDC</a> and blockchain in conducting transactions. As for ordinary people, it&#39;s impossible to say unequivocally if it&#39;s good or not.</li><li>Replacement of traditional banking.  The rapid development of crypto technologies ensures the provision of  services by companies worldwide and the ability to become financial  institutions for many of them. So far, such companies don&#39;t provide  services related to lending, deposits, various crypto accounts, and  transactions. There are a lot of platforms with millions or even tens of  millions of users. But, if we look at total cryptocurrency&#39;s  penetration, obviously that it&#39;s a privilege of just 3-4% of the  population. Banks will go over to the side of crypto technologies or  leave the market.</li></ul><p>The active audience of the crypto market  is quickly growing, and there is no button or &#39;reverse gear&#39; that can  stop its development. However, you must not expect that regular money  will cease to exist several years later. But it is quite real that our  children will increasingly use cryptocurrencies in their youth.</p><p>Read full article: <a href="" rel="noopener noreferrer nofollow">https://www.entrepreneur.com/money-finance/amidst-a-regression-heres-how-cryptocurrency-will-impact/449806</a></p><p></p><p>By <a href="https://www.entrepreneur.com/author/vladimir-gorbunov" rel="noopener noreferrer nofollow">Vladimir Gorbunov</a></p><p>Entrepreneur Leadership Network Contributor</p><p>CEO and Founder of the crypto firm Choise.com</p><p>Vladimir Gorbunov is a professional entrepreneur, CEO and  founder of the crypto firm Choise.com that combines elements of  centralized and decentralized financial solutions within a single  marketplace. He is an accomplished strategy manager and startup builder.</p>

Vladimir Gorbunov CEO Choise.com for Entrepreneur.com: How Cryptocurrency Will Impact the Future of Money as We Know It

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