Crypto vs traditional payment systems: US economic report weighs the pros and cons

Crypto vs traditional payment systems: US economic report weighs the pros and cons

The United States published a report on the Economic Report of the President on 22 March. The 513 pages highlight digital asset management, its volatility, and its unpredictability. 

In the report, the United States highlighted both positive and negative aspects related to digital asset management. It has mentioned the detailed definition of each term like crypto and other related terms. The report not only covers the crypto management-related details it also consists of several other sections like women’s labor force, investment in human capital, export items, and their share in exports.

The Economic Report of the President addressed many questions like whether it can increase financial inclusion or not and if it could increase the current financial infrastructure in the United States. According to the report, some households in the United States don’t have any bank accounts because of the minimum amount limit set by traditional banks. However, in many crypto assets exchanges, there’s no such limit in many of the exchanges and they don’t charge any overdraft fees to customers. 

Unbanked households also seek quick returns on their investments which traditional banks don’t provide. So households are more inclined towards the crypto exchanges and help in financial inclusion. 

In the same report, they mentioned risks and uncertainties associated with digital asset business. According to the report, crypto works as speculative investment vehicles hence they are highly risky and full of uncertainties. They can’t replace the traditional payment system because of several reasons. It has a fluctuating nature and changes in a very short time. Suppose you purchased a bitcoin and in the next minute it falls sharply but traditional money doesn’t fluctuate in a short interval. 

In terms of usability,  crypto is less liquid as compared to traditional USD because you can’t purchase anything with it and nor is it a legal tender. The report will help beginners and as well as already existing crypto users to know about the pros and cons related to digital assets management. It published detailed points from working to the usability of digital assets management and tried to answer every possible question. 

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