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A decade ago, people were saying that cryptocurrency was a myth, a scam, drug money, and much more. Financial experts were refuting its existence and laughing at those who said it would become a real currency.
Fast forward a decade to 2021 and you will hear a very different story. China has its own digital currency called the e-yuan. Blockchain technology has become not only widely accepted but widely used across the tech world.
So how has this new wave of digital currencies changed the way we use, view, and transact with money?
Some Ways the Financial Industry has Changed Due to Crypto
Transparency
One major impact that has been brought about due to the rise of cryptocurrency is the transparency of the financial world. Cryptocurrency is built on the blockchain. A system that runs on a decentralised database where everything is recorded on a public ledger. This means that every transaction can be seen and tracked by anyone using the public ledger. This has been theorised to allow less fraud to take place, yet that has not been proven.
However, this level of transparency has forced traditional financial institutions to catch up to the level of transparency that consumers are demanding. This has been a massive shift for an industry that has always been fairly closed off to the public.
Online Systems
Before the days of crypto, very little happened online with regard to banking. However, as more and more people started using digital wallets and exchanges, the financial industry started to catch up. Most banks now have online banking and banking apps.
This shift has made banking faster, easier and cheaper. You no longer have to wait in lines at banks to transact.No more checks! Many have attributed this shift to the crypto world.
Lower Fees
Cryptocurrency is well known for its extremely low costs. This is partly due to less red tape and their focus on online platforms rather than physical locations. While many traditional players were opposed to this viewpoint, it has been demonstrated to be more cost effective.This has led to many banks reducing the number of their physical branches and focusing on online systems due to the cost efficiency.
This disruption has led to the creation of many online-only banks that offer huge cost savings in comparison to normal banks.
Global Payments Have Become More Convenient
Before the world of cryptocurrency, transacting money around the world was expensive and took a while. Now that is no longer the case. You can pay someone with crypto anywhere in the world and they can receive your money within seconds. They can then withdraw it within 24–48 hours, depending on the provider and country.
Some companies with remote teams are now looking into paying via cryptocurrency due to the speed and low cost of the process. With more and more people working remotely, this makes the process easier.
Large Corporations That Have Adopted Cryptocurrency
Since the launch of crypto back in 2008, digital currencies have grown in both value and popularity. While at first, it was not mainstream and many of the large companies did not even look at incorporating it, things have changed. Now there are a few large players who are using or looking into using and accepting cryptocurrency. These companies include:
Tesla
Tesla is the world’s leading electric car manufacturer. The company’s founder, Elon Musk, is well known for sharing his views on cryptocurrency on Twitter. Elon Musk announced that Tesla would soon be accepting Bitcoin payments and had made a $1.55 billion investment in the currency. He said that car buyers would be able to pay with cryptocurrency for their new vehicle.
PayPal
PayPal has always been a disruptor, making global payments easier and cheaper. It only makes sense that they would incorporate digital currencies too. They have recently launched the crypto section of their platform, which allows people to buy, sell, and transact using Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Being one of the most trusted eWallet and payment gateways in the industry, this is a huge achievement for the industry.
MasterCard and Visa
The biggest payment gateways in the world have publicly endorsed Bitcoin. These financial heavyweights have already started to move towards accepting future payments in cryptocurrency and processing the digital assets. Visa already accepts transactions through stable coins on the Ethereum blockchain.
Mastercard is not as far along and is set to begin transacting with crypto within 2021. Having these payment gateways will make transacting with crypto both easier and more mainstream.
Has Crypto Really Changed Our View on Money?
While it can be difficult to differentiate between the growth in technology and the influence of crypto, it is safe to say that digital assets have certainly disrupted the industry. Whether it be more transparency, lower fees, or easier global payments, the financial space has changed drastically. How has this affected our view on money?
Back in the old days, people used to save cash under a mattress or in a safe. Nowadays, many young people do not even carry cash as it is safer and more convenient to pay via card or electronic alternatives. The view on cash has now changed from paper to numbers online. This has made spending money faster and easier. Money is no longer paper; it is the value placed on a digital asset. How will this affect the future? We will have to wait and see.