Ant Financial is not present in the cryptocurrency space. Should it be? Why?

Expert Solution

Ant financial is not available in crypto currency trade due to following reasons:

Ant Financial is one of the largest tech finance corporation in the world. Its business lines are electronic payments, billing processing and banking. Shares of this company is listed in NYSE.
Cryptocurrency trading is highly price volatility. So that it is very difficult for the stakeholders to estimate the values of assets. Inherent value of securities also affect the market negatively.
As Ant Financial is a china based organisation, cryptocurrency trading is not legally authorized there. So that it will be risky for the corporation to trade without cross border agreement signed.
There is no reverse payment gateway in cryptocurrency investment. Once payment is done to some other party there is no other way to get it back.
Apart from it there is huge swings in the market price for crypto currency, as a result there is chance of loss for institutional investors regarding their investment portfolio.
Bitcoins might leads to heavy out of pocket expenses for the corporations. Hence net profit margin will be reduced and the organisation will not be able to meet their short term debt obligations.

Thus these are the major reasons for which Ant Financial is not present in cryptocurrency investment activity.

All the best for your exam! Thank you!

jeff jeffy answered 11 months ago

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