Since the first credit cards got released in the 70s, commerce has been becoming increasingly digitised all over the world, giving customers and businesses new opportunities to connect around the world. Now, blockchain technology is emerging to take over this process. The major advancements in blockchain technologies, for P2P payments via cryptocurrencies, have been witnessed globally.
Considering the current digital cash scenario, the consumers are a lot concerned with the fiat payment processing companies. Perhaps with the current state of affairs, it can be assumed that cryptocurrencies would take over the digital cash system in the world.
Here are a few reasons why.
Firstly, blockchain creates greater consumer privacy and security while making cryptocurrency payments for users, whereas, the fiat payment processing companies use databases to store information related to debit and credit card purchases. Due to a large number of hacks of centralised databases, this puts consumer privacy at great risks. Thus cryptocurrency does ensure secure payments.
Secondly, the transactions in cryptocurrency are borderless. Even though internet has provided the power of overseas transactions to consumers, there are usually high fees for money conversions. In contrast, cryptocurrencies can be used globally without having to pay any fees or charges while sending/receiving funds from anywhere across the globe. This makes the money flow frictionless.
Another reason could be the hassle free flow of transactions. Currently digital payments have an uncertainty of the payment process time, which becomes a major obstacle in doing business. Consumers have to often see “pending” on their dashboards. However, cryptocurrencies can correct this by providing the ability of instantaneous transactions. With cryptos, senders and receivers would be able to make transactions and commerce much more efficiently.
Last but not the least, the lack of alternatives with customers. Most traditional payment companies haven’t reduced the cost of transactions as there is competition for them in the market. Where there are only a handful of viable options with companies, there are thousands of possible cryptocurrency alternatives. A number of businesses have already started to accept Bitcoin and other cryptocurrencies alongside debit/credit cards.
However, the current state of cryptocurrencies is far from perfect. But, after taking correct measures towards security, privacy and transactions speeds, cryptos are not far from taking over the electronic cash system.