Could Cryptocurrency Applications Change
the Future of Digital Payments?
Do you feel that cash will die in the near future? The usage of virtual money in the form of physical cards, mobile apps and digital wallets is on peak nowadays. These new methods of currency exchange have taken the new norm today, and people around the world are just happy with it.
And who won’t be so excited? As here, you won’t have to carry any physical wallet. All you need is your smartphone that will make you feel even smarter with it. Countries around the world have accepted this digitalisation and have transformed into a digitally empowered society and knowledge economy with paperless and cashless initiatives.
Blockchain-enabled currency and cryptocurrency have taken a prominent place in financial technology and digital payments. 62% of the US citizens foresee the death of cash in their lifetime while 24% of them are using cash most of the time.
Cryptocurrency in digital payment is the next big thing now as it is creating new ways for people to pay the payments. It has undoubtedly become the future of digital payments and the global economic system as people can exchange faster with this medium of exchange.
With this article, you will get to know how cryptocurrency and use of bitcoin are becoming the fresh face of businesses and enterprises around the globe.
What is Cryptocurrency?
Cryptocurrency converts your conventional funding system to bitcoins. To rival against the fiat currencies, cryptocurrency emerged in the year 2017. As a result, companies and retailers started accepting it for payments as they certainly feel resentment and profit. More and more companies across the world have declared it legal and are adopting this method for faster and cashless payment benefits.
Kenya has already collaborated with Vodafone for having cashless payments in the country via mobile apps. The superpower Japan has also made bitcoin legal and have started accepting bitcoin for payments.
Way back in the year 2017, CEO of 1World Online, Alex Fedosseev launched it’s ICO (Initial Coin Offering). He said that India has one of the largest opportunities when it comes to cryptocurrency adoption and its revolution is spreading to India.
Now, let me explain what exactly ICO is?
ICO is Initial Coin offering in which the Cryptocurrency industry who is looking to raise its funds creates a new coin, app or services. The procedure is exactly the same as the IPO (Initial public offering) in which a company issues fresh public offerings.
Now that you know what exactly Cryptocurrency is, let's go through the reasons why you should use cryptocurrency in digital payments...
4 reasons you should go for Cryptocurrency
Some of the good reasons why digital currency like cryptocurrency has gained more and more number of eyeballs onto it are:
No Intermediary Indulged
You all know that every financial transaction requires banks as the intermediaries, but with cryptocurrency, the thing is not the same. It excludes these central issuing institutions like banks and governments. Ongoing transactions are completely anonymous, and there is no supervision by any third party such as government or banks. It is 100 percent secure and reliable.
What strikes your brain when you hear someone saying - Ah! I lost my wallet? Well, It sounds like you are living in the stone age. Using physical things as a mode of transaction is often riskier and unsafe these days. The market is flooded with plastic cards and all the transactions are smooth with it.
However, there are payment companies like PayPal, Apple Pay, and Android Pay who pump money into their account using credit card or debit card. With cryptocurrency wallets, you will not have to link your wallet to any other account, which certainly makes it easier to use as compared to card-funded wallets.
But what makes cryptocurrency different from these even though they are also a virtual form of transaction. Just check it out here:
Cryptopay offers its users a mobile wallet that helps them in storing and managing their bitcoin in the local currency of their choice. It is quicker, faster, cheaper and easier.The users can send and receive bitcoin through their account (like a Monzo and its network) but also the feature to exchange bitcoins for euros or pounds.
As a backup option, users can link their account to their debit cards. In short, it means people can readily use their bitcoin to pay even if a merchant only accepts plastic and fiat currencies.
Furthermore, ATM’s, new currency exchanges, Bitcoin debit cards and educational programs are being developed each week. Companies like Cryptopay are genuinely banking on bitcoin and other cryptocurrencies as the de facto currency of global commerce.
People generally use RTGS(Real-time gross settlement) for processing virtual real-time transfers. Blockchain and cryptocurrencies have evolved into a popular mechanism for enabling cross-border transactions. The transaction is quick and easy as it happens within the system whereas, in the traditional transactions, the payment is processed through the intermediary; banks and clearing houses which usually takes up to 5 working days.
With cryptocurrency, it is just a matter of seconds, and it also costs less to maintain and operate. Bitcoin and blockchain remittance is becoming popular in many countries because of cross-border transactions. The Philippines has over 2.2 million of overseas workers; it has adopted Bitcoin and blockchain remittance is becoming popular in this country with deployed migrant workers.
Companies like SendMoney.ph and Rebit.ph allow cross-border transactions so that these workers can send back money to their family easily as compared to Western Union money transfer who charges 10 percent spreads and before charges.
Secure and Fraud-proof
The economy has already upgraded itself and has embraced the new cashless economy with open arms. Digitalised transactions prevent you from losing your valuable hard-earned money currency hence making it more secure.
With cryptocurrency, all the confirmed transactions are stored in a public ledger, and the identity of the bitcoin owner is encrypted to ensure the legitimacy of the record-keeping. The currency is decentralised, and you are the owner, and there is no obtrusion of any bank or government.
The money is safer on the cloud as security here always remains ahead of the cyberattacks. The users of bitcoins need not disclose their identity to send or receive bitcoin. Civic, a Blockchain startup uses blockchain technology to offer identity verification for businesses that allow safer and verified transactions for everyone.
Coming to its Popularity
It was 2009 when blockchain gained its impulse and trust among its investors. The first decentralised currency gained its name and fame and became one of the most significant investment phenomena in modern history.
Did you know that 25 bitcoins are created every 10 minutes? And its price increases as per the cost of production. There are no dues on the part of bitcoin and payments are smooth here. Major banking institutions, investors are reliant on the bitcoin currency, and they are willing to pay any amount for this.
Intel, Barclays and Walmart have given their time, sweat and money into it and utilising the power and promise of cryptocurrencies like Bitcoin and Ethereum, Countries like Brazil, Turkey, Colombia and Venezuela are some of the early adopters of bitcoin as they can see the depreciation in their currency. Bitcoins have almost replaced the traditional fiat currencies.
Not only the countries with weaker currencies, even the wealthy and developed countries have also adopted cryptocurrency and made it legal as well. Bloomberg Report says that the central banks of Japan, the European Union and Holland are conducting research projects and trials on cryptocurrency in digital payments. On the other hand, China is planning to introduce a “blockchain” version of its currency “yuan”.
Now, by looking at its popularity, you can surely say that Cryptocurrency has evolved only to serve the purposes of the digital payment sector.
While there is a probability that the fiat currency may vanish over time just because of its expensive printing, Bitcoin has emerged as the new mode of exchanging money. Almost, many countries around the globe are bidding goodbye to cash, and it is high time to add this most promising addition in the digital payment sector.
If you wish to add cryptocurrency in digital payment, then do a bit of research on these companies and hire a top cryptocurrency development company for your project. They will provide the best bitcoins services, wallets, and apps to reinforce their price standards with companies and clients.
About the author:
Varun Bhagat is a Sr. technical consultant & blogger working for PixelCrayons which a leading software consulting company in India. He loves to share his tech-related knowledge gained over a period of 10+ yrs with like-minded people.