Cryptocurrencies have emerged as a new way of carrying out financial transactions, especially in the US. The banking sector in the US has decided to embrace this unique piece of technology. Recently, the Currency (OCC) office Controller provided a way forward for this to be possible. Banks now have a bigger incentive to offer custodial services to cryptocurrency businesses.

Banks can now provide their services to businesses that receive payment in cryptocurrencies- in a better way. Note that in the recent past, the banking sector has been hesitant when dealing with cryptocurrencies. Of course, the latest technology has an element of high risk embedded. Regardless, banks such as JP Morgan Stanley have gone ahead of the curve and created their digital currency (the JPM coin). Also, the bank has made Onyx an entity designed to compartmentalize its digital currency. Cryptocurrency acceptance in the banking sector is multiplying, and this presents abundant opportunities for the future.

Cryptocurrencies will undoubtedly add to today's banking trend of paperless cash, which couldn't have come at a better time. Many businesses are now accepting bitcoin as a payment method. It only makes sense that banks should put in place measures to make this possible. However, banks will have to come up with stable coins to capitalize on this new technology.

Stablecoins will be better in terms of volatility, which has been a risk factor for Bitcoin. The creation of these stable coins will have massive implications for the financial sector. Insurance protection by businesses will skyrocket since many companies want to protect themselves from risks. As initial coin offerings(ICO) become a part of today's businesses, banks should ensure they have the necessary infrastructure to receive cryptocurrency capital for companies.

Many banking institutions still fear government-backed currency might become devalued because of cryptocurrencies. This fear does not hold any truth, as many people still prefer the US dollar. Notably, cryptocurrency infrastructure processes fewer transactions than the regular dollar. These transactions present a challenge for digital currencies. As banks integrate digital currency into their services, transaction speeds will surely increase.

But-ironically- cryptocurrency transactions have an element of transparency. Customers can have a peek into how the digital currencies move, which could be significant for banks. Most banking transactions involve secrecy. Also, the banking sector will gain customers' trust more, as they will see how their money moves. Digital currency has also provided credit to people with no bank accounts. Internet access is certainly more prevalent in the US. The credit provision has enabled more people to be able to purchase and trade in cryptocurrencies. More people will be able to access credit and loans based on their E-wallets balances.

Wha else? Transaction fees for banks will become a subject of contention, as cryptocurrency transactions do not have transaction fees. Banks will have to develop a mechanism enabling them to make a profit. As more businesses integrate digital currencies into their operations, banks will have to develop ways to profit without losing their customers' trust.

International trade has the convenience of cryptocurrencies, and the banking sector has seen a considerable rise in profits due to this development. Banking institutions that offer stable coins will significantly benefit. Moreover, eCommerce in the US has risen massively to 44%, especially with the Covid 19 lockdowns. Digital currencies have enabled most people to make purchases faster using bitcoin. It has, therefore, become imperative for the banking sector to facilitate this trade.

We must note that even as the banking sector embraces digital currencies, there is a need for special regulatory measures to be put in place. The proposed digital currency regulatory bill (STABLE Act) contains measures to ensure that banks' digital currency is consumer-protective. In the new proposal, banks with stable coins will have to possess a bank charter to give the stable coin. Further, banks that offer a stable coin are required to inform the Federal Reserve and other relevant banking agencies six months before unrolling the stable coins. They must also obtain insurance from the Federal Deposit Insurance Corporation (FDIC). This insurance is to facilitate liquidity on demand of the stable coins.

Ultimately, electronic savings will increase as more digital currencies get integrated by banks. Banks will be able to access more cash for lending. The overall US economy will improve as more investments by these banks become a reality. Also, interest accrued by such savings will give customers increased income on their electronic savings. Immediate liquidity will become easier for these banks in case of massive withdrawals by customers. Eventually, the banking sector in the US will become significantly more efficient; that's most encouraging.

Like elsewhere globally, the US manufacturing sector felt the adverse effects of Covid 19, with many operations getting halted. This resulted in the loss of jobs since the industry is usually labor-intensive. Moreover, it presented a new outlook on how the manufacturing sector needs approaching.

Regardless, adopting technological solutions, such as mobile robotics and artificial intelligence in the manufacturing sector has proved crucial. This is especially true in a pandemic period when the availability of labor was scarce. Interestingly, certain manufacturing firms ( like Tesla), who have integrated technology into their manufacturing processes, continued to thrive even with the labor scarcity.

Moreover, employee-training is crucial, even as more manufacturing firms shift towards smart technologies for their business processes. Certainly, employees' training will enable such businesses to work more efficiently with technology such as robotic machines and artificial intelligence programs. Further, hiring the best and top talent in a company's respective manufacturing sector is essential. The provision of incentives is equally significant for companies to attract talented employees.

Without a doubt, the manufacturing of products in the US has become crucial, as the country experienced shortages of various products and services due to lockdowns. Ironically, the globalized manufacturing by many businesses presented this shortage since many factories and production plants have, over the years, relocated to foreign countries. This offshore manufacturing has dramatically contributed to the lack of crucial products such as masks, testing kits, and protective clothing for the country's healthcare industry.

The US now needs to put in place infrastructure to ensure the manufacturing of goods and services is localized and not in foreign countries. Further, firms need to return to a result-based approach concerning manufacturing. With the ever-increasing power of shareholders in manufacturing firms, such businesses have to remain focused on their businesses' manufacturing aspects rather than elements like branding and marketing.

No wonder manufacturing firms are now cutting down costs to rebound from Covid 19 effects. This cutting down has resulted in job losses, but it has also helped streamline services. Cost-saving to channel the money to marketing and sales elements is crucial. Why? More businesses seek to recoup losses experienced due to the pandemic. Further, digital marketing is now an essential aspect of manufacturing businesses that previously relied mainly on face-to-face methods to reach their customers. Also, e-commerce has become a vital business model aspect since more firms are adopting drop shipping business practices to diversify their portfolios.

Also, investment in innovation programs and research and development is now an essential aspect of the manufacturing sector. Covid 19 has given firms an eye-opener on how important research and development is vital for businesses' growth. Patent protection and intellectual property protection are now crucial to the success of a firm's products and services.

We all know it- Covid 19 is still with us. Therefore, the manufacturing sector will need to ensure workers' health and safety standards are upheld, with modifications to ensure high sanitization levels in the workplaces. Hand sanitizing stations and shift rotations to enforce social distancing will be crucial to prevent virus outbreaks. Notably, employee safety will continue to be essential to prevent work injuries and incidents.

Diversification of products and services is vital for the sector, and Covid 19 has presented challenges to firms that deal in single product lines. Despite diversification being a capital-intensive endeavor, it is a cost-saving undertaking to ensure a business's cash flow. This diversification will enable manufacturers to have a contingency plan to fall back on, as no one when Covid 19 will be no more. Of course, change management will be necessary during this diversification, as managers will have to learn new practices and philosophies of executing the new order of business.

We shouldn't forget that government policies regarding the manufacturing industry will need to be changed to suit these uncertain times. The manufacturing sector suffered immensely due to the pandemic, and many firms suffered with it. What can be done? Low-interest loans for the industry would be a significant injection to revive many businesses. As the demand for products continues to rise, the industry will have to meet this demand, and this will require a lot of cash infusion into the industry. The government's incentives to the industry, characterized by tax holidays, research, and development tax credit, will contribute significantly to this sector's expected comeback.

Without a doubt, the coronavirus pandemic has slowed down economic growth in the United States and globally. In 2020, business activities countrywide slowed down due to the lockdown measures. Notably, the country's GDP dropped by more than 8%, which has been the country's worst, dating back to 1945. According to experts, unemployment rates will increase by as much as 50% this year as the economy continues to recover. As the vaccine is released into the market, these numbers could rise phenomenally.

Lower interest rates

The government has put in place interest caps to ensure loan interest rates remain low and accessible to businesses to spur economic activity. The Federal Open Market Committee stipulated that the interest rates' capping will stay at 1%, and this will last- at least- until 2023 until the country's inflation rates hit 2%. Further, through quantitative easing, the government announced US treasury bonds purchasing to spur more lending and investment activities around the country.

Higher Oil and Gas prices in the country

Crude oil and gas prices will increase by $6 to $49 per barrel as compared to 2020 prices. Statistics from the Energy Information Administration (EIA) suggest that, as the economy reopens and economic activity begins to spur, the oil demand will rise significantly. This demand might contribute to a considerable price rise. Generally, due to the pandemic, commuting to work may have reduced as more people embraced working from home. However, demand for fuel in the aviation industry will push this demand upwards, with expected levels getting significantly higher in 2021 compared to 2020.

Ecommerce growth

Ecommerce growth is expected to increase this year-the pandemic has made this increase possible. Projections show that about 16% of the goods are bought online from e-commerce sites such as Amazon and Alibaba. Stores' sales have, on the other hand, experienced a decline in sales, as more people have become dependent on online shopping. Also, online grocery shopping experienced a 50% growth, and this has been the most significant jump in any sector in the consumer goods category. More people will continue to use online e-commerce platforms this year, which will provide jobs for cadres like delivery drivers.

Developed Healthcare

The healthcare industry has proved to be critical, especially with the Covid-19 pandemic, which-ironically- exposed the industry's weakness. With the vaccine hitting the market soon, the healthcare industry will have to get streamlined to distribute this vaccine effectively. Further, the pharmaceutical industry will play an essential role in the success or failure of this vaccine. Contingent plans will have to be in place to ensure the healthcare industry can handle the ongoing pandemic while ensuring the new vaccine gets administered to citizens.

Increased inflation Levels

Some analysts expect inflation in the country will rise, with others predicting a 2% high in the coming months. The pandemic has significantly slowed business activity- this contributes to the expected high inflation rate. Most businesses slowed down in 2020, and others completely closed due to low demand. The hospitality industry got hit the most, with hotel prices falling by over 10% and airline prices falling by a whopping 25%.

Lockdown measures, if upheld, would make the coming months more challenging, and inflation will rise as commodity prices continue to grow. Businesses will have to raise their prices, even as the vaccine presents an opportunity for the country to reopen fully. The fiscal stimulus might-ultimately- lead to higher inflation, as the dollar's stability takes a hit.

Rethinking of the manufacturing industry

The pandemic has made many industries rethink how they operate, and the manufacturing industry is no different. The lockdown crippled the manufacturing industry. Why? It's mostly labor-intensive. Manufacturing firms now have to rethink ways to implement technology to enhance reliability and efficiency. Robotics and computer-aided designs will-likely-begin to be more complemented by businesses.

Collaborations between manufacturing firms and technological entities should become a new norm, as companies realize how labor-intensive designs can be fatal, especially in situations like the ongoing pandemic. Also, an increase in the demand for products and services has made the manufacturing industry experience some growth. This growth can be useful for the industrial development momentum. Notably, human resource restructuring is now a huge factor in minimizing costs as many businesses experienced massive losses due to the pandemic.

While coronavirus greatly affected the US as a nation, the country's financial sector was equally hit. For instance, the stock market experienced high volatility periods, with stocks experiencing peaks that caused them to be overvalued by more than 58% as of February last year. It continued to experience lows of over 30% by the beginning of 2020. This volatility made it hard for many companies to survive, especially small businesses. The pandemic also resulted in more people making money off cryptocurrencies like Bitcoin, which has steadily risen during the pandemic.

As time moves, cryptocurrencies have become more popular- more businesses have embraced them as a payment method. Think of it- the value of Bitcoin has been positively unaffected by Covid-19; this has made it a safe financial bet. Further, more people in the US have embraced bitcoin as a valuable investment, and business moguls such as Elon Musk have embraced the use of this currency. Also, Bitcoin's easy liquidity has made it a haven for people to profit, especially with the effects of unemployment.

In 2020, unemployment levels reached an all-time high; obviously, this was due to the pandemic. Many people lost a source of income, prompting the government to provide fiscal stimulus programs to enable citizens to survive during the pandemic. This action enabled economic activity to continue during the pandemic, even though experts expected the economy to face higher inflation levels -notwithstanding the stimulus programs.

Further, consumer spending fell by over 7%, as more people lacked the finances to have significant purchasing power. Due to this reduced spending power, many businesses closed down as they lacked customers. Countrywide lockdowns resulted in the decline of shopping malls and stores. Interestingly, in the months after March 2020, the number of online shoppers increased as more people relied on e-commerce stores to acquire products and services.

Currently, most businesses are taking loans to facilitate or revive the fortunes that suffered due to the pandemic. Also, banks' loan interest rates have been capped to ensure small businesses fully restore their operations using such loans. Eventually this would spur significant activity. Many businesses' financial expenditures are restricted, with leading enterprises looking for ways to save money. Cutting down costs is the order of the day as many companies are actively looking for ways to streamline their services.

Consider this: News of the new vaccine has provided a much-needed impetus to the country's economic activity. More businesses are now opening back up in anticipation of the return of normalcy to the business world. Ultimately, this means more money supply in the national economy. Generally, customers must revert to physical store purchases- this was impossible during the recent lockdowns. Employment levels will-likely- begin to spike up, enabling people to have income sources that were lost. Analysts expect household spending power to be on a steady rise in the coming months as the economy gradually opens. However, the price of this vaccine will primarily determine whether economic activity spurs back or not. Naturally, pharmaceutical companies- and others- are determined to make their profits- this will impact how the businesses thrive.

What about the manufacturing and production sectors? These were massively hit by the pandemic. Manufacturing declined sharply after March 2020, which meant the loss of many jobs. Of course, loss of employment often results in a general lack of financial power. This decline resulted in businesses slowing down due to an unusual lack of economic power. In the post-2020 period, many manufacturing businesses had to evaluate their business operations- the pandemic had graphically demonstrated how labor-intensive structures could have massive downsides. However, financial investments will continue to be crucial for all businesses that wish to invest in technological improvements and operations like computer-aided machinery, robotics, and Artificial Intelligence deployment (AI).

Ironically, during the pandemic, many people's saving ability-countrywide-improved significantly, up to 33%. Actually, many people spent less of their income during this period than they usually would. Analysts attributed the high savings rate is the lockdowns. Further, many realized they did not need lots of goods and services that they previously thought were indispensable. Also, due to the loss of jobs countrywide, most people became more stringent with their spending. Such income inequalities contributed to the high savings rate. Why, many low-income people have had to ensure they had a way to cover their bills.