Counting on who you inquire, cash will not rule.
The Covid-19 pandemic not only stirred digital payments but also directed more acceptance of physical cash options like a cryptocurrency that will probably last.
In other words, the era of banknotes is drawing to a stop driving the central bank’s digital currencies.
Though there are limitless ways the fate of money can grow, the mix of cryptocurrency, stablecoins, central bank digital currencies (CBDCs), and different digital payment systems will end the physical cash.
Yet, only one technology alone won’t surpass it. As Cryptocurrencies by themselves won’t Stablecoins are better but might have limited reach. A central bank digital currency (CBDC) would also need easy access.
The following points will ponder if cryptocurrency will be the future of money.
Dawn of decentralization:
We live in an era where we can easily own and handle all our assets. Decentralization gives financial freedom that stays untouched by the changes of the banks and government.
There is no third-party involvement, hence offering more transparency and sounder transactional safety.
Networks made on blockchain do not need any trust or knowledge of others. Decentralized finance (Defi) as a method can smoothly replace traditional financial functions for obvious reasons.
Peer to peer transaction:
‘Save extra cost’, is the convincing aspect for all. Before, the middle men in the economic blockchain incurred extra charges on the transactions.
The more middle man, more cash! The pull of peer to peer (P2P) is that you can share wealth or right of things without the involvement of a third party.
A peer-to-peer transaction is translucent, secure and easy. In short, peer-to-peer transactions offer privacy and no extra cost on the transfer.
Ease of usage:
We have spent our precious time in long queues and filling forms and slips only for sending and receiving money.
Remember when our finances stop due to down servers and bank leaves? What a mess!
The beginning of digital currencies is bringing in endless options.
A remarkable benefit of digital currencies is their ease of use. Keeping a smart device lets you be your bank, make transactions and save time.
Fraud proof/ translucent:
We worry whether the bank details we have fed in will lead to wrongdoing, or is some third-party system tracking our usage?
Digital currency focuses on user privacy, so data breaking would be rare as it has few personal facts.
All trades are coded between “digital wallets” and will result in an exact calculation on the log.
Blockchain technology disrupts every aspect of our presence with this sort of safety.
Before, people had to pay more cash to send or accept incomes via borders. By surpassing global boundaries, digital currency vows flexibility and financial growth.
Similarly, cryptocurrency would be cheap, easy and quick. Digital currencies can grow trade and open up many options to support the finance of the countries.
Undeniably, the digital currency will be the chosen currency for the next generations.
Cryptocurrency: The path forward:
Cryptocurrencies have caught the vision, but not in the way planned. In their current form, they are not likely mediums of trade.
Their anonymity makes them attractive for illegal and criminal transactions, but this is not so from a societal view.
Now, the main interest of cryptocurrencies is as a speculative investment.
There are also environmental impacts due to the electrical demands for cryptocurrency.
Technology may improve the ease of using central bank digital currencies for domestic and international payments. There is a demand for better, cheaper services, mainly for those without a credit or debit card or a bank account.
More and more people are taking interest in cryptocurrency nowadays.