The Pitfalls of Central Banks and Modern Turnarounds
When the era of cash began, people were shocked by the idea of exchanging slips of paper for goods and services. Nowadays, we are used to this financial system and strongly believe in central banks because this structure connects every participant of the market. Obviously, not everyone really knows how central banks work, whom they are owned by and how money circulates among different organizations and people.
However, everyone cares about inflation, corruption and the instability of banks. Below, we will uncover the vast liabilities of the current banking system and how we can deal with them in the near future. Should the central banking system be changed?
The Role of Central Banks in the Financial System
A central bank is an organization that is responsible for policies which affect the supply of money and credit. In fact, central banks use the instrument of monetary policy to ensure stability of monetary value, stability of prices and sustained economic stability.
The first central bank, known as the Swedish Riksbank, was established in 1668. It was used for government funds and as a house for ecommerce. A few decades later, many central banks in Europe were opened as centralized organizations which created their own notes serving as money. With the passage of time, the role of banks became more and more significant. While commercial and central banks can offer such services as savings, credits and transactions between other authorities, central banks are responsible for printing new money and setting interest rates. As a result, central banks have the real power over the economy.
The Reasons Why Central Banking System doesn’t Work Anymore
The authority of central banks to control the process of printing money can’t be underestimated. Most central banks are privately owned by groups of people, whose interests may not lead them to act in the best interests of others. That’s why printed or coined money may be produced when there is no real need. In that case, money will circulate among limited groups of people and work for their economic growth. Moreover, the existence of excessive amounts of money can lead to its depreciation and then lead to inflation. Central banks don’t guarantee the stability of economic growth as they should . What is more, year by year, banks set higher and higher fees on transaction operations because each authority who takes part in that process wants to benefit from it. In a word, central banking is a very uncertain system. It can be manipulated by major players who are not trustworthy. Is it possible to find an alternative in technological advancements?
Which System Does UNISON CASH Propose
UNISON CASH, an innovative cryptocurrency based on blockchain technology, offers solutions to the existing problems of world central banks. One of the main features of UNISON is the concept of tying cryptocurrency to gold, real estates and other assets, long established within the traditional economy. This thereby guarantees the security and stability of the cryptocurrency.
The price of conventional cryptocurrencies is determined in many respects by general factors and, therefore, is highly variable. UNISON CASH is wholly tied to the value and rate of the asset with which it is paired; therefore, it has a stable value. This results in low volatility, which creates the real chance for a valuable currency, sustainable in the long term, not vulnerable to dangers of inflation.
By using blockchain technology UNISON offers an unprecedented level of trust in information in the relationship between a person and public or private institutions. The blockchain is a decentralized, open source database that does not require mediators to be verified. Information stored in this way is open to all participants, and it cannot be destroyed or changed inconspicuously. This reliable mechanism allows for storing and protecting information, preventing data falsification and providing data openness.
The problem of corruption is being actively considered at the level of innovative technologies, namely, in the rapidly gaining popularity of the crypto industry. Moreover, the use of blockchain can provide a working mechanism for anti-corruption activities.
UNISON CASH offers a combination of blockchain (independent and immutable data that cannot be falsified), cryptocurrencies (which do not require central management) and smart contracts (which facilitate the transactions). These factors will allow you to realize how much safer and more efficient this new type of transaction will be compared with traditional processing contracts. The technology of distributed databases and its development open up new opportunities for society, business structures, and the state. The ability to create public data registries with an accessible history of all transactions and protection against unauthorized deletion challenges traditional data storage architectures. Creating all kinds of cryptocurrencies and cryptocurrency services revolutionizes the world of finance, simplifying and accelerating the exchange of assets. In the case of developing countries with unstable monetary systems, cryptocurrency largely replaces the traditional issue of money by offering an alternative exchange tool.
The cryptocurrency industry is an innovative leap in improving the financial system of the whole world. Cryptocurrencies have a number of properties that make them particularly useful as a medium of exchange rather than a unit of account. Unlike cash, transactions with them can be carried out both “personally,” with contacts of two computers and over the network, if you have access to the Internet. Besides, unlike credit cards, the charge for simple cryptocurrency transactions is small and voluntary; it is used to encourage quick transaction processing.
Find out more about UNISON on https://unisoncash.io/