Nowadays, when everything is available 24/7, it can seem old-fashioned that financial markets are dormant on weekends, and no fiat currency payments can be executed via banks. It is also true that the US Dollar, the worldβs reserve currency, is not traded/settled on weekends.
On the other hand, digital currencies like bitcoin are available around the clock. The digital currency market never sleeps and offers 24/7 trading options for investors worldwide.
However, there are practical reasons for traditional financial markets to close on weekends. For one, it allows market participants to take a break and recover before returning on Monday. Closing the markets can also contribute to stability by limiting trading and preventing market volatility due to expected lower volumes.
Blockchain technology could help transform the financial markets and lead to a 24/7 global exchange. Blockchain technology enables the creation of decentralised trading platforms that do not require a central authority and can operate 24 hours a day, seven days a week.
However, it is essential to note that developing a global blockchain-based trading platform is not easy and can present many challenges. These include regulatory challenges (e.g. ad hoc publicity such as price-sensitive facts such as financial figures, personnel changes and merger plans) and technical difficulties (e.g. application updates).
What is your opinion? Will financial markets and payment systems still rest at weekends in 10 years?
Source: LinkedIn
