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How does treasury settlement t+1 affect the efficiency of cryptocurrency transactions?

avatarRazimNov 27, 2021 · 3 years ago3 answers

Can you explain how the implementation of treasury settlement t+1 impacts the efficiency of cryptocurrency transactions? What are the advantages and disadvantages of this settlement method?

How does treasury settlement t+1 affect the efficiency of cryptocurrency transactions?

3 answers

  • avatarNov 27, 2021 · 3 years ago
    Treasury settlement t+1 is a process where cryptocurrency transactions are settled one day after the trade occurs. This delay in settlement can affect the efficiency of transactions in several ways. On the positive side, it allows for more time to verify and validate transactions, reducing the risk of fraudulent activities. However, the delay can also lead to longer transaction times and increased volatility in the market. Overall, the impact on efficiency depends on the specific circumstances and needs of the participants in the cryptocurrency market.
  • avatarNov 27, 2021 · 3 years ago
    Treasury settlement t+1 can have both positive and negative effects on the efficiency of cryptocurrency transactions. On one hand, it provides an additional layer of security and reduces the risk of settlement failures. On the other hand, the delay in settlement can result in longer transaction times and increased costs. It is important for market participants to weigh the benefits and drawbacks of this settlement method and determine whether it aligns with their specific needs and goals.
  • avatarNov 27, 2021 · 3 years ago
    At BYDFi, we believe that treasury settlement t+1 can enhance the efficiency of cryptocurrency transactions. By introducing a one-day delay in settlement, it allows for better verification and validation of transactions, reducing the risk of fraud. This method also provides participants with more time to manage their liquidity and make informed decisions. While it may introduce some delays, the overall impact on efficiency is positive, especially for participants who prioritize security and risk management.