Nowadays, when everything is available 24/7, it can seem old-fashioned that financial markets are dormant on weekends and that fiat currency payments cannot be executed via banks. It is also true that the US Dollar, the world’s reserve currency, is not traded/settled on weekends.
Conversely, digital currencies like Bitcoin are available 24/7. The digital currency market never sleeps and offers 24/7 trading options for investors worldwide.
However, traditional financial markets close on weekends for practical reasons. 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 regarding 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
