There has been research conducted by the Capgemini Research Institute, and the results predict that an estimated 45% of consumers all over the world will be shifting over to using cryptocurrencies for payments in the next 1 or 2 years. This is due to the steadily increasing demand for cross-border payments. Right now, only less than 10% of global consumers opt to use cryptocurrencies for payments.
The degree of how legalised cryptocurrencies are will depend on the country that you ask, but the fact that some countries are willing to accept it as legal tender just shows that there is a large potential for them to find their place and be integrated within payments schemes and various transactions.
A cryptocurrency like Bitcoin may not be your best bet for making payments, but there are still a lot of options for cryptos that you can utilise for payments. Ripple, Solana, EOS, Neo, Cardano and Ethereum are all examples of cryptocurrencies that have high potential to be used for payments since they have lightning-quick transaction speeds.
If you’ve been reading up on cryptocurrency news for quite a while now, you would know that there was a lot of noise around the fact that El Salvador, a country from Central America, had made legislations in order to recognise Bitcoin as legal tender to be used in transactions all over the country. One of the advantages that this brings is that it would make payments a lot quicker and cheaper. It also provides censorship resistance and an anti-inflationary system. It is still too early to know whether or not El Salvador’s move will bear fruit, but in the case that it does, then a lot more countries will be following their steps.
El Salvador’s decision to recognise Bitcoin as legal tender serves as a sort of reminder of the original purpose of Bitcoin, which was to provide a digital asset that could be used for payments. Right now, it is largely seen as a form of investment, but this outlook might soon change.
Of course, when taking payments into consideration, efficiency must be made a priority. This is where the appeal of cryptocurrencies comes in since transactions, and cross-border payments can easily be completed within minutes or even seconds when done using cryptocurrencies. This is in stark contrast to the typical fiat transfers that may take several days. There is also the fact that most payment platforms and financial institutions have high transaction fees for international transactions while still taking quite a bit of time to complete.
Cryptocurrencies are highly believed to be the future of transactions, making them an asset with a lot of possibilities. You might want to consider investing in them once you have your financial bases covered. If you want to learn more, then you can visit the Bitcoin Evolution site, a secure and beginner-friendly crypto trading site that can equip you with the right tools to start your investment journey.
Because we exist in an increasingly digital age, speed becomes of utmost importance when we talk about the completion of a task. When the time comes that cryptocurrencies are integrated into global finance, both local and international payments will definitely become easier. And if you take the existence of smart contracts into consideration, then you can also create functionalities that can be used for your cryptocurrency transactions.
For example, if you want to send pocket money to your child who lives away from you, you can make use of smart contracts to set conditions for the usage of the money. This can ensure that the money you send won’t be used for things you don’t want them to be, like junk food.
Smart contracts can also be used for the automation of payments. You can establish pre-fixed conditions using smart contracts. If this is paired with the security that comes with using blockchain technology, then it will just add to the overall appeal of using cryptocurrencies for global payments.
At a current market cap of $2.5 trillion as of October 2021, cryptocurrencies have truly become an asset class in their own right, and the gap between crypto and fiat currencies are slowly disappearing. This makes cryptocurrency a nice asset to consider if you’re looking for something to invest in for the long term.
Being able to complete cross-border payments within seconds is slowly becoming a reality, but the real benefit of using crypto for payments is when we are able to integrate it into our daily lives. The future for cryptocurrencies is bright, but we would still need businesses all over the world to start accepting crypto payments in order to bring out its true potential. Meanwhile, though, there are 15,000 businesses that accept crypto payments globally. Some of the examples are Starbucks, McDonald’s, Newegg, Home Depot, Microsoft, and PayPal, just to name a few.