A decade ago people said cryptocurrency was a myth, a scam, drug money, and so much more. Financial experts disproved its existence and laughed at those who said it would become real currency.

Fast forward a decade to 2021 and you’ll hear a whole different story. China has its own digital currency called the e-yuan. Not only is blockchain technology widely accepted, it is becoming widespread across the tech world.

How has this new wave of digital currencies changed the way we use, display, and trade money?

Some ways the financial industry has changed because of crypto

transparency

A major impact caused by the rise of cryptocurrency is the transparency of the financial world. Cryptocurrency is built on the blockchain. A system that runs on a decentralized database where everything is recorded in a public ledger. This means that every transaction can be viewed and tracked by anyone using the public ledger. This has been theorized to allow for less fraud, but this has not been proven.

However, this level of transparency has forced traditional financial institutions to obtain the level of transparency demanded by consumers. This was a massive shift for an industry that has always been fairly closed to the public.

Online systems

Before the days of cryptocurrency, very little was happening online in terms of banking. However, as more and more people started using digital wallets and exchanges, the financial industry began 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 queue in banks to make transactions. No more checks! Many have attributed this shift to the crypto world.

Lower fees

Cryptocurrency is known for its extremely low cost. This is partly due to less bureaucracy and a focus on online platforms rather than physical locations. Although many traditional actors rejected this view, it has proven to be more cost-effective. This has resulted in many banks reducing the number of their physical branches and focusing on online systems due to cost efficiency.

This disruption has led to the creation of many online-only banks that offer enormous cost savings compared to normal banks.

Global payments have become more convenient

Before the world of cryptocurrency, money transactions around the world were expensive and took a while. This is no longer the case. You can pay someone around the world with crypto and they can receive your money in seconds. These can then be withdrawn within 24–48 hours, depending on the provider and country.

Some companies with remote teams are now considering paying via cryptocurrency because of the speed and low cost of the process. As more and more people work remotely, this makes the process easier.

Big companies that introduced cryptocurrency

Since the introduction of crypto in 2008, digital currencies have grown in both value and popularity. It wasn’t mainstream at first and a lot of the big companies didn’t even consider it, but things have changed. Now there are some big players out there using or considering using and accepting cryptocurrency. These companies include:

Tesla

Tesla is the world’s leading manufacturer of electric cars. The company’s founder, Elon Musk, is known for sharing his views on cryptocurrency on Twitter. Elon Musk announced that Tesla will soon accept Bitcoin payments and has invested $ 1.55 billion in the currency. He said car buyers would be able to pay for their new vehicle using cryptocurrency.

PayPal

PayPal has always been a nuisance that made global payments easier and cheaper. It only makes sense that they should include digital currencies as well. They recently launched the crypto section of their platform, which enables people to buy, sell, and transact with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

As one of the most trusted eWallet and payment gateways in the industry, this is a huge achievement for the industry.

MasterCard and Visa

The largest payment gateways in the world have publicly endorsed Bitcoin. These financial heavyweights have already started moving towards acceptance future payments in cryptocurrency and processing of digital assets. Visa is already accepting stable coin transactions on the Ethereum blockchain.

Mastercard is not there yet and is expected to start crypto transactions in 2021. These payment gateways will make the transaction with crypto both easier and more common.

Has crypto really changed the way we view money?

While it can be difficult to differentiate between technological growth and the influence of crypto, it is safe to say that digital assets have certainly changed the industry. Whether more transparency, lower fees or simpler global payments – the financial area has changed drastically. How has this affected our view of money?

In the past, money was saved under a mattress or in a safe. Today, many young people do not even carry cash with them as it is safer and more convenient to pay by card or electronic alternatives. The view of cash has now changed from paper to paying on the internet. This has made spending money faster and easier. Money is no longer paper; it is the value attached to a digital asset. How will this affect the future? We’ll have to wait and see.

How is crypto changing the way we view money? first appeared on Coin Insider.

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