Cryptocurrencies to Drive Contactless Payments Globally In Future

Mobile App Development

Monday, 04 May 2020

All of us have a responsibility to leave for future generations, a planet that is healthy and habitable by all species. Going forward, the Corona crisis is alarming and a much-needed wakeup call that will arouse our creativity. As we hear a lot about 'message front-loading' in communication these days, i.e. important things in the first few seconds of the message. The overwhelming emotion lets creativity follow a natural course, not directed as much by market considerations. Harsh circumstances have often been conducive for varied P2P payment options as WHO has projected people to make use of contactless technology wherever possible. In a protective measure to contain the spread, the global financial sector also sees the possibility of rediscovering what's forgotten, this is going to be true not only for the ideas and creativity but also the financial institutions follow their banking processes. Being Immune to COVID-19, how futuristic is Cryptocurrency?

Cryptocurrency Market Divisions

  • Offering (Hardware: GPU, FPGA, ASIC, & Wallet, and Software),
  • Process (Mining and Transaction),
  • Type,
  • Application (Trading, Remittance, Payment: Peer-to-Peer Payment, eCommerce, and Retail),
  • Geography - Global Forecast to 2024 

This epidemic turned pandemic in the form of COVID-19 outbreak has propelled central banks to resort to quarantining physical bills and some are even going as far as burning banknotes. Some Korean Banks have resorted to keeping currency notes safe for up to two weeks as the virus usually dies in nine days.

The Chinese government asked lenders to both disinfect bills and keep them safe for up to 14 days depending upon the region they came from. Federal Reserve also sets the notes aside for 7-10 days before re-circulating them. This is because banks acknowledge that banknotes might contain bacteria and viruses and people are advised to wash their hands properly before and after handling the money

Peer-to-Peer Cashless Payment Options: Remedy to Make the Most of the Current Situation

Most of the banks are risk-averse and the precautionary measures that they are following do not fully reflect the actual risk. But these are certainly a good metric for how the banks think about making use of physical cash. This scenario accelerates the need for the banks to adopt their digitized currencies while some other runs on block-chain solutions. Officials claim that real-time digital payments are inevitable and banks likely need to soon issue their digital currencies.

The above discussion details the need to have cashless payment options and the inevitable need to accelerate crypto-currencies in the economy but who is responsible for afloat this protocol? Who is going to delegate and own the rules behind them?

Crypto-currencies to Emerge as the Best P2P Payment Option

Cryptocurrencies allow users to make cashless transactions effortlessly. The flexibility of technology will allow for a more innovative transmission of fiscal and monetary policy, especially in times of crisis. Times of crisis reduces the velocity of money as people tend to save. The number of times a dollar is spent determines its economic impact. But the velocity of money cannot be influenced in conventional terms. Rather it can be deployed to influence velocity by incentivizing consumption by the consumer in two potential ways:

  • Consumers get a cash-back on digital dollar purchases. The more they spend the more they get back. This involves credit cards offering schemes – this amplifies the effect and bolsters the spending.
  • Holding of digital dollars might incur a fee this incentivizing person to spend the money as soon as possible to mitigate the accrual of future fees. Although this sounds punitive, this policy was introduced during times of depression earlier, to prompt the people to spend and significantly boost the overall economy. In crux, we need the money that is easier to use and faster to send across, plus the transactions must be efficient and secure.

Conclusive

The need for a digital alternative to paper money becomes increasingly clear as the world grapples with disastrous effects of Coronavirus. The cryptocurrency market, unwithered by the current pandemic is projected to cross 1.40 billion dollars by 2024 at a CAGR of 6.18% during the forecast period. It’s been taken up by entrepreneurs, start-ups and small-medium-large scale enterprises with equal vigour. 

With some unknown challenges that have recently surfaced due to the Coronavirus Pandemic situation, the technological progress is in close fit with transparency in distributed ledger technology, high remittances in developing countries, high cost of cross-border remittance, fluctuations in monetary regulations and growth in venture capital investments. The economic boundaries are on the verge of merging, de-stabilizing the well-established global businesses. It can be co-related with prevalent market-trends, not constrained by cross-border transportation and disrupting the global panic. It is a new investment channel, immune to Coronavirus and has the power to manage multi-trillion dollar government bailouts. 

Author
App Development Agency

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