FINANCIAL DIGITALIZATION AND ECONOMIC GROWTH: RECENT DEVELOPMENTS IN BANKS AND FINTECH

Abstract

High technology enables payment evolution and global competition. The ambiguity surrounding the digital currency still leaves ample room for analysis of its unreserved acceptance, trust and anticipation, which are the main drivers of the network's spread. Bitcoin and other cryptocurrencies have the potential to replace traditional and new forms of payment. But to achieve this and become a dominant force in the global payments system, they must provide distinctive individual value, address and overcome a number of critical challenges, such as formal regulatory issues. Banks should take a close look at the technology underlying these cryptocurrencies as a potential generic new way to transfer ownership of value in the long term.

The objective view is that the future of digital currency is currently still an open question due to the existence of a "critical mass". The research showed that the future of cryptocurrencies can be bright if some institutional-formal conditions are met due to the fact that the successful evolution of e-money requires building security payments through three criteria – standardization, compatibility and innovation.

Also, the partnership between Fintech companies and banks is an already implemented formula that bears fruit, but we must not leave out the fact that all developed countries in their platforms, in addition to connecting banks, implement the platforms with the direct participation of e-Government and the concept of interoperability.