Cryptocurrencies Reimagining The Payment Systems
Ever since the birth of cryptocurrencies, the payment systems have seen a drastic yet a wonderful change that is bringing more and more people to the world of digitalization. However, many ask the same question over and over again, and that is – Is it a safe system to make all payments? This article intends to illustrate how the use of digital currencies has re-imagined an entire world of payment systems in just a span of 10 years.
- Reduces Fraud – The most important concern when it comes to any new payment system is that whether the payment system is resistant to fraudulent activities and hackers. Cryptocurrencies being a digital currency and one that does not require any linking to your bank account or credit card details, it is completely free from fraudulent activities.
- Offers Stability – Although cryptocurrencies are volatile, they offer better stability when compared to other national currencies that do not provide any buffer to change, instability, and most importantly to inflation. However, cryptocurrencies, on the other hand, are accepted worldwide and these are not subjected to any interest rates or exchange rates.
- Changes the Whole Process – Traditional payment systems require a minimum number of working days to clear the payments and transfer the money to the beneficiary’s account. However, transactions made through the new and improved payment system that makes use of cryptocurrencies are much faster, less expensive, and very secure.
- Offers Scalability – Unlike other traditional programs and software that are built to cater to specific needs, cryptocurrencies are more scalable in nature. Scalability is a common issue that many organizations However, cryptocurrencies surpass this hurdle because it can adapt easily to newer services.
- Secures Foreign Transfers – A common problem and a risk that one faces while traveling to other countries are that they have to carry enough cash and international credit or debit cards to meet their expenses in the foreign land. However, transactions through cryptocurrencies solve this problem as it is fully digitalized and prevents the possibility of theft and scams.
- Increases Crowdfunding – Another positive use of cryptocurrencies is that entrepreneurs and new start-up ventures are extensively using these as a means to fund their businesses because payment transactions involving cryptocurrencies are free from risks and ICOs (Initial Coin Offerings), which are the main sources of crowdfunding offer better returns.
Therefore, cryptocurrencies have paved way for a better future by giving people full control of their money.