5 ways digital currencies will change the world

This article delves into the ways in which Digital Currency are changing the financial systems of the world. Know how the payment and remittance business is being impacted by digital currencies and what you can do to take advantage of this evolving landscape.

Being the revolutionary form of digital money, cryptocurrencies allow people to send money in an instant and avoid high fees and middlemen – this is a highly convenient tool for transactions at any time, in any place. Most likely digital money will expand the international commerce sphere, boost development and financial inclusion, and change the way we pay the online shops, and even store our money. Cryptocurrency technology is slowly transforming the world, and here's how.

Faster transfers with minimal fees

Currently, banks have an outdated approach to sending funds. When it comes to an international transaction, they might be performed within 7 days – this is the time required for the money to pass all middlemen, such as connected banks, clearinghouses, and so on. Cross-border transactions also take some time and might be delayed due to a large number of reasons.

By using Bitcoin and other cryptocurrencies, we solve several problems:
  • Low transaction speed
  • High fees
  • Middlemen
  • Data vulnerability

Of course, such fast and simple transactions might be possible even without cryptocurrencies, but those act as the internal token of any blockchain. For example, Ripple Labs provides a comprehensive solution for safe and quick exchange operations (for instance, USD to EUR), but introduces a safe cyber ledger in the form of XRP. With the help of their technology, it's possible to send money around the world by establishing an efficient bridge between correspondents. This approach allows including several transactions over numerous partners in several banks – the required transactions will be confirmed at one time.

At the same time, cryptocurrencies allow for anonymous payments. Other users won't know such transaction details, such as Zilliqa price, fee, time of the deal, names of parties, etc.

2. Change of global remittances

It is estimated that the amount of global remittances for people sending money to other countries is $500 bln, which even exceeds the foreign direct investment. Since total fees for such transfers vary from 5% to 10% - this is a substantial burden. Cryptocurrency technology can make transfers fast and inexpensive.

With the help of crypto, users can send their money via mobile phones and pay fees to the exchange only (which is substantially lower). While customary exchanges require an organization to have funding to make up for the postponements of universal instalments, advanced monetary forms' prerequisites are a lot lower.

However, capital expenses and cash development costs are just a piece of the settlement business. Decrease of these expenses may diminish the passage challenges for littler players or permit the current little individuals to serve new nations and markets.

3. Money made available for developing countries

The burst of mobile tech evolving in African countries has proved that they are ready for the transition to more complicated technologies, and it's estimated that about 60% of commercial activity in Kenya might take place with the help of mobile for sending and receiving money. Anyone with a mobile can send their assets to others. However, the technology adoption breaks against the wall of large fees and expensive cashing out (about 20%). Global acceptance of this credit would make everyone spend more with being charged less.

Digital money might become a new handy form of payment where people are not bank clients at all. They can simply create online accounts, buy Enjin coin or any other crypto, and send assets to anyone. Although the use of crypto poses some currency risk to the country's citizens, it might be a much better alternative to other available options, especially in places with a high rate of inflation. It promises to be a safer alternative to the traditional approach when people keep their money and expensive jewellery at home. Besides, a Bitcoin owner can exchange it for any other currency on some international platforms. It allows residents to work with global financial services and manage money even without bank accounts while staying protected from inflation. This way financial control is harder to cast.

4. eCommerce development boost

Today, some online sellers are afraid of credit card use because of security concerns. This fraud is typical for international transactions, so some countries do not accept payments outside the borders. With Bitcoin, such transactions cannot be reverted once they are performed. This way, merchants can implement a superb payment method and allow them to send worldwide. Since handling virtual money is easier than doing any other form of transaction, digital currency allows everyone to practice online shopping and global eCommerce.

This would be useful for each developing country. Say, Latin vendors would safely send their items anywhere, African businessmen might implement a new widely acceptable way of payment, and Chinese teachers could educate international students online. That concerns minor transactions as well because low fees and absence of geographical restrictions would solve the problem.

5. Smart contracts & software for finance management

When an asset is digital, automation becomes possible. That opens the bridge for smart contracts and automatic execution of transactions, as well as escrow operations. They are widely used for large transactions, for example, house trade. When the user makes a purchase, its payment is sent to an escrow, and it goes to the seller only when the transaction is completed and the item/service is received. Today, this principle can be used in smaller transactions, as well. The issue of trust does not appear anymore – no one will know transaction details (QTUM coin price, time of the deal, names of users), which makes it impossible to steal assets.

One more useful feature is multisig – the funds can be spread over accounts only when several signatures are received from authorized parties. That protects against stealing of digital data and helps companies make sure that their funds will not be fetched or lost in international transactions. It applies to individuals, firms, divisions, and residents of developing areas.


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