Cryptocurrencies are trending, and the reason is the enhanced benefits if offers. Cryptocurrencies like bitcoin use blockchain technology, which is considered to be the future of payments. The use of blockchain and cryptocurrency is increasing with more and more businesses adopting it. A survey suggested that in the next 3 years more than 50% of businesses will adopt cryptocurrency payments. This clearly shows that this is the future of payments as cited above by Bahaa Abdul Hussein.

Cryptocurrency for payments

The use of cash for payments has been on the decline for some time now. Cashless transactions through cards and other payment modes have been popular. And now crypto has been added to this list. While this is not universally popular, there are many businesses that are willing to accept payments through cryptocurrencies. While discussing crypto for payments, there are certain key issues to be discussed.

a) Safety

Is crypto safe to use for payments? This is a common question most people have. Some countries have banned cryptocurrencies on the ground that it is being misused by criminals for money laundering. There is an unfortunate perception that only hackers and criminals use cryptocurrencies. But this is far from the truth. The fact is that cryptocurrencies are backed by blockchain technology. Blockchain is highly secure and cannot be hacked. Once a transaction is complete, it cannot be changed.

b) Stability

Currencies like bitcoin are extremely volatile and their values keep fluctuating rapidly. This is why many people fear to use them. If people feel that the value of cryptocurrencies would significantly appreciate, then they may not use them. They would rather prefer to keep it as an asset and not use it as currency. However, the present situation of volatility is an issue. It would probably take some time for cryptocurrencies to settle down in the global market.

c) Regulation

Many countries are imposing regulations on cryptocurrencies while others are taxing it at the highest rates. Some countries are yet to work out a regulatory framework. But the fact is no country can afford to ignore cryptocurrency. In some time, all countries would decide on how to regulate cryptocurrency. Once regulated, people will be more comfortable to use crypto. Its use in payments will then pick up.

Many countries are introducing their own digital currencies. Citizens can get an account with the central bank to use the digital currencies. When this is implemented, the use of blockchain as well as cryptocurrencies would become more accepted.

Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please stay tuned to www.bahaaabdulhussein.com