Financial experts and economists will agree that ever since its introduction back in 2009, Bitcoins have revolutionized the way payments are made.
While it’s true that Bitcoins and other forms of cryptocurrencies have their fair share of detractors (largely because they are unregulated) but that hasn’t stopped countries from looking for ways to develop their own digital currencies.
The statement that “crypt currency is the future of payments” has been thrown around a lot but is it really true? Let’s find out:
The Future of Payments
In order to understand the evolution of payment methods, let’s go over a brief history lesson first. Before money became a thing, people used to rely on the barter trade system to engage in business.
The problem with this system was that the two parties needed to be codependent on one another. In order to counter this problem, people started trading commodities like gold in return for things that they needed.
The system has evolved over time to the one that we know today and according to many, cryptocurrency is just the next step in the evolution of payments.
What Makes Cryptocurrency Different From Credit Cards?
For many people in the United States, credit cards are the preferred method of payment. However, they are quite different from cash payments.
With cash payments, you just pay the money to the merchant and that’s about it. With credit card payments, the process is a bit more complicated. The money goes through multiple intermediaries before the merchant receives the payment.
This is what separates cryptocurrency from credit card payments. The former was developed to provide users with the same experience as cash payments albeit in digital form. The developers placed emphasis on deregulation in order to make digital payments easier.
Sweden is on top of the list of countries that have adopted cryptocurrency. They are also the biggest advocates of a cashless economy and the country has always been quick to adopt mobile banking and digital payments.
Considering the popularity of digital payments in the country, it was only a matter of time before the central bank issued a digital equivalent of the currency.
The e-krona is equal to the regular Kronor and it’s expected that in the future, people will use it for short-term transactions. At the moment, the authorities are still in the process of identifying if it’s indeed a viable payment option.
In the meanwhile, other countries like Venezuela have already issued their own digital currency, which is known as the Petro.
The United States, too, is in the process of adopting digital payments and if you are thinking of jumping on the bandwagon, you might want to consider getting in touch with UIC World. They offer EMV payment systems and NFC products for different industries.
Contact them at +1-510-438-6799 to learn more.