“You can now buy your bread with cryptocurrencies”
Cryptocurrencies are gradually gaining ground in our financial system. One example is that it is now possible to buy bread with them, as Raul Arribas, Chief Technology Officer at 11Onze, told the radio magazine Territori 17. We explain how cryptocurrencies work and their advantages.
When we go to a country that has a different currency to the euro and we buy something with our credit card, we receive a charge in our account for the euros equivalent to the cost of that product according to the exchange value of these two currencies. In the same way, today it is already possible to have a debit card that allows us to buy in the corner shop in euros and deduct the equivalent amount from an account we have in cryptocurrencies.
Raul Arribas uses this example to explain the progression of these assets, which “are not regulated by traditional financial institutions”, in our day-to-day lives. He even mentions that there are more and more e-commerces “where you can pay with cryptocurrencies”.
Beyond a speculative purpose due to the possibility that they may increase their value in the future, Arribas highlights some advantages in the daily use of cryptocurrencies, such as transparency and immediacy in transactions around the world.
A parallel system
The CTO at 11Onze mentions bitcoin and ethereum as the most popular cryptocurrencies, although there are many others, some of which offer “very small fluctuations” in value.
Raul Arribas points out that “the world of cryptocurrencies is not intended to replace the traditional financial system, but to offer a parallel system that does not depend on obscure decisions in offices that nobody sees”.
In this sense, Arribas explains the current problem of inflation of conventional currencies, caused by the huge issuance of currency by central banks in recent years “to dope the economy”. And he contrasts the transparency of cryptocurrencies such as bitcoin: it is known that “21 million bitcoins will be created and then none more will be created”.
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