“Have you invested in crypto yet?”
From ads on billboards, to influencers on social media, to your very own neighbor, everybody is asking the same question. While some vouch for the future, others are yet to explore the possibilities. Nevertheless, crypto is now a term that needs no introduction.
But a few years back, it was almost impossible to believe that crypto would influence the mainstream market anytime soon due to its volatile nature. So what has changed? Is it the trust factor led in Elon Musk’s tweet? [“Working with Doge devs to improve system transaction efficiency. Potentially promising.”]
Or is it the “futuristic secured vision led by crypto itself” doing rounds in the market?
Although the answer to this is debatable, what is not debatable is the visible effect of crypto in finance, especially the fintech market. And while there’s a lot that crypto offers to Fintech as of today, we’ve enlisted four significant reasons that are nothing less than a revolution:
1. Turning unbackable into easily bankable:
Yes, you heard us right! Although most regions with stable currencies and banking consumers might disagree, the truth is, crypto is a breakthrough discovery for areas with unstable currencies. Some countries like Iran, Venezuela, etc., are often struggling to maintain a consistent valuation for their money, thus, adversely affecting their citizens’ lives. In their case, and almost every country going through devaluation/constant modulations, crypto is a far more stable option to consider due to its unified nature.
Not just that, but crypto is also a more reliable option for approximately a billion people with no bank accounts but phone access. Not having a bank account bars people from using banking products, but that does not stand true for crypto. Anyone and everyone with no bank account are still eligible to use financial products built on crypto. Thus, unlocking new fintech markets for companies and changing the ‘unbankable’ to ‘bankable.’
2. Highly efficient money transfer:
Transaction approvals are a daunting task when it comes to the traditional banking setup. Not just money transfer across borders; money transfers across states within the same country is also a delayed, exhausting process in many places. However, this is not the case with crypto. Cryptocurrencies can be moved to from anywhere in the world quicker than any traditional method. Built on a secure decentralized ledger, they also reduce the transaction cost. Don’t believe us yet?
The μBTC Account launched by easyMarkets is a real world application that might address your hesitations. As an all-in-one account for any Bitcoin trades, the easyMarkets μBTC Account provides the ability to deposit, withdraw and trade a range of assets in bitcoin without exchanging it for FIAT currencies. Clients of easyMarkets that use Bitcoin deposits to trade CFDs (contracts for difference) via this account also qualify for standard benefits offered to all its users, including no slippage and protection against negative balance. This product is an example of a crypto-first approach in Fintech, and suggests there could be similar innovations to come in this sector.
3. Reduced frauds & better security:
No matter how efficient a fintech company gets, fraud, identity theft, money scams are still a significant concern around operations. The risk is high with traditional money handling, and the challenges are often time-consuming.
Cryptocurrencies, being decentralized digital currencies, are a fresh, welcoming change for fintech companies trying to secure finance with technology. Due to its blockchain nature, cryptocurrencies cannot be manipulated, thus reducing fraud in Fintech companies. Also, the distributed and decentralized ledgers make it a lot easier to verify transaction records for crypto than any other currency. Thus, introducing crypto in Fintech enables a better robust system for security against money laundering and probable frauds.
4. Advanced day-to-day lifestyle:
With so much change in the financial aspect, our day-to-day lives, and the entire money management system, transactions, buying & selling patterns are also up for an upgrade.
Right from the way you rent a car, operate a machine, manage an asset, or walk into a buying experience, the decentralized blockchain system is all set to influence a significant change in our lives. Experts predict that this robust and secured system is the future ahead, and the transformation begins from the financial system. Reason why, fintech is embracing the opportunity to lead the way towards a revolution. Following its footsteps, hospitals, companies might also join the opportunity. And if everything happens as per the prediction, the blockchain system would significantly improve businesses, trades, and the global economy, at large due to its decentralized virtual nature.
Not just these, but crypto also offers a shift from traditional challenges to convenient solutions in easier accessibility to loans, verification of identity, etc. Much the reason why the years ahead are a promising ground for Fintech & Crypto to prove their worth individually and in an alliance as the next driving force. And although they are an efficient alternative to the current banking system, it’ll still be challenging to transform this innovation from an alternative to the preferred future. And while the revolution takes place, all we can do is hope for the best!