How do cryptocurrencies interact with the existing financial system?

Cryptocurrencies interact with the existing financial system in several ways. For starters, they provide an alternative payment method to traditional fiat currency. As such, cryptocurrency can be used to purchase goods or services online, transfer money between individuals or organizations, and even hold as an investment. Additionally, some companies are starting to accept cryptocurrencies for payment. This allows these businesses to access customers who may not have access to a traditional financial system, thus increasing their customer base and providing new opportunities for growth. In addition, some financial institutions are beginning to offer services related to cryptocurrency, such as exchanges, custody, and trading platforms. As more companies adopt cryptocurrency, it’s expected that more financial institutions will follow suit, creating more opportunities for the cryptocurrency market to grow.