Digital currency has been around for a while now, but it is only recently that people have started to take it seriously. Bitcoin was created as a form of digital money in 2009, and today there are dozens of cryptocurrencies being used all over the world.
Cryptocurrency’s low fees, fast transaction times, and decentralized nature make it an appealing alternative to fiat currency like the U.S dollar or Euro. The emergence of cryptocurrency has many experts predicting that this new technology will significantly change how we do business and live our lives in the future – including ways you might not expect! Keep reading this blog post to learn about how cryptocurrency will change everything from banking to shopping online!
1. Faster and Cheaper Bank Transfers
With a bank account, it can take two weeks to transfer money internationally or even between people in the same country. Country-specific clearinghouses are necessary for international transfers, and this process faces challenges and barriers.
Bitcoin could help make bank transfers instant. It’s an entirely new currency that is quicker than any other payment method currently available on the market today, and money can be transferred instantly — making our current banking practices outdated!
There are even protocols available now that facilitate currency exchange without leaving parties vulnerable to theft or fraud through digital ledgers (like U.S dollars converting into euros, for example). The protocol’s intelligent, efficient algorithm can execute and confirm transactions quickly. The path through which they travel is often complex as it may include foreign exchange traders who have accounts at different banks across the world. However, these protocols locate the most optimal route to save time.
2. A Boost to E-Commerce
Online merchants adopt the risk of credit card fraud when they take on customers, which isn’t fair to them. That is an unfortunate issue since most global transactions involve some form of this type of payment, and so international payments are risky as a result.
Luckily, bitcoin has come to the rescue these past few years with its ability for secure online shopping that cannot be reversed after it’s been sent (provided you’re not dealing in cash). Bitcoin eliminates any risk from potential fraud by removing the need for identity verification which can lead to unintended consequences like false charges slipping through or even full-blown hacking schemes – all things we don’t want happening when conducting business!
With no more worry over fraudulent chargebacks and such being made against your company, borderless e-commerce will become much smoother than ever before. Companies would have more options for payment with the introduction of new cryptocurrencies. There is a chance that micro-payments will become standard as well, enabling even low-value purchases or transactions to be made online without hassle from high transaction fees.
3. A Boost to Global Remittances
Let’s take a look at El Salvador, the first country to adopt bitcoin as a national digital currency, to see how this can be a boost to global remittances.
Sadly, 70% of the population of El Salvador has no access to basic banking services or opportunities for saving money due to their unbanked status. That leaves many in El Salvador one step behind — even if they have great ambition and hard work ethic — as it becomes more difficult to save what little wealth people possess without modern-day tools such as an account at a local bank branch near them.
Because of this, the El Salvadoran population relies heavily on remittances. For example, a man working in the United States might send a fraction of his paycheck home to help feed his family or pay for their education. Similarly, a woman who migrates to Canada may remit earnings to help pay for her mother’s medical needs. The list of needs and situations is endless.
Imagine being in need of money and not being able to access it. For the unbanked in El Salvador, this can happen because they do not have a bank account or credit card that allows them to receive funds instantly without any fees. Even sending as small as $10, for example, can take about four weeks.
Nowadays, digital currencies such as Bitcoin make financial transactions possible anywhere at any time without involving banks. Sending your funds instantly, without needing an account at all, is very attractive for those who are not fully banked. Furthermore, these people can use their newly-acquired cryptocurrency to shop anywhere and thus boost the local economy.
4. More Money Available for LICs
Technology is playing an increasingly important role in the development of African countries. Mobile tech has evolved to a point where it’s expected that most commercial activity will take place with mobile usage, and more people are beginning to accept credit as their preferred form of payment. That could lead them towards greater spending power while giving technology firms even easier access into developing economies than ever before.
This is where cryptocurrencies are a new and exciting way to do business. There is no need for bank accounts or debit cards, just buy some coins on the open market and send them anywhere in seconds with low transaction fees, either at home or abroad.
They will also be able to secure their digital assets from inflation and won’t have to keep all of their money and savings at home, which is dangerous. They’ll still be able to access it when they want by using cryptocurrency exchanges that specialize in cross-border transactions worldwide or even just peer-to-peer or business-to-business transactions — giving people more financial control over their lives than ever before!
Digital currency has the potential to change how we transact with one another, and this post details four ways in which it is already doing so. With faster, cheaper bank transfers, a boost for e-commerce, more money available for low-income countries (LICs), and an increase in global remittances, digital currencies offer a world of opportunity that you won’t want to miss out on!
Digital currencies, such as Bitcoin, have a lot of potential to change the world. But before you get too excited, it’s important for everyone to understand that there are challenges ahead. The challenge is how do we ensure that people both can and want to use digital currency? Well, reading this blog post and seeing all the suitable digital currencies are doing in the world is a great place to start. That said, despite these challenges, digital currency has vast potential and will be something worth watching closely over the next decade or so as they take shape!
We hope that you found our blog post helpful when considering digital currencies will be beneficial not only to you but to the global economy as a whole. If you have any questions about how Unbanked can help, or if you just want to learn more about what digital currencies have to offer, reach out! We are excited because we strive every day toward blockchain adoption as an economic powerhouse in the future by keeping up-to-date on all current trends within the space while staying involved behind closed doors too.