FX Industry Growth with Blockchain Technology
The increasing penetration and adoption of blockchain in all industries are popular today. The blockchain industry is advancing the foreign trade. Blockchain technology is used to simplify the currency markets by streamlining the methods to store trading data in the FX industry.
Forex is the world’s largest market, which runs 24 hours a day and seven days a week. The FX industry’s five main influencers are companies, banks, traders, investment funds, and governments. Deutsche Bank is the world’s biggest currency trader with its headquarters in Frankfurt, Germany.
FX is a globally decentralized market that determines the exchange rate. It incorporates all aspects of the purchase, sale, and exchange of currency at current prices. There are more than 4 million transactions per day in the FX market. The advantage of Bitcoin Forex trading is that there is no need for a central bank to alter bitcoin valuations randomly. The bitcoin market is independent of geopolitical influences through decentralization. All bitcoin transactions are registered in a public blockchain automatically. There are no banks or clearing agencies involved in this process. Bitcoin transactions are therefore extremely cost-effective to be carried out worldwide. Bitcoin trading brokers keep the cost of brokerage very low to attract new customers, greatly benefitting the trader. These transactions are also safe compared to most bank transactions. It has a positive impact on costs and the safety of funds. Bitcoin transactions can be carried out anywhere in the world regardless of regulatory limits.
According to the Statista report 2017, experts predict that the FX market will grow to a remarkable $2.3 billion worth by 2021. Blockchain could help to improve safety in the FX industry keeping sensitive data much harder to hack due to its decentralized record. The FX market will continue to grow with the blockchain technology, making it more efficient and reliable by changing the way currencies are traded.