11th Oct2017

This is how Bitcoin is shaping the Future of Payments

by James Smith

Until now, many of us believe that money, and in particular cash, is the ultimate means of payment and the sole means of transferring value from one owner and another. With the setting in of Bitcoin and other virtual currencies, you should be ready to change the way you approach payments and value transfer. Even though initially many people dismissed Bitcoin for another passing cloud and fleeting shadow, Bitcoin is proving a hard nut to crack for all those who dismissed it. In fact, its impact is so deep that even the most established names in the financial world are making provisions to accommodate Bitcoin in their systems. For instance, Visa and NASDAQ are developing ways of integrating Bitcoin into their systems. With all these twists and turns unfolding before our ways, we at UK essay now.com are glad to introduce you to this new payment platform. Stay with our post to learn how this technology is shaping the future of payment.


The adoption of the technology by central banks

Since the traditional banking system is centralized and pegged on central banks, it is necessary to understand that the financial system can still work without a centralized system. With the adoption of Bitcoin through its Blockchain technology, we are soon going to see central banks adopting cryptocurrencies and issuing them for mass consumption.

A change in how payments are done in the car rental industry

Another area of payment that this technology can positively impact is the car rental agency industry. These agencies can use smart contracts to alert them automatic whenever they receive payments and insurance information through Blockchain records.

A swifter way of settling currencies and equity

In this instant-result generation, no one loves encountering delays when settling their transactions. But all this will be a thing of the past when Blockchain finally takes its rightful place. The reason is that the platform can facilitate swift settlement of currency, fixed income trade, and equity using distributed ledgers. This way, banking institutions can create many opportunities, attain greater efficiency, and create new asset classes.

Increased safety in payment

With the Internet creating an avenue for institutions to trade and pay online, the risk of cyber crime remains a big threat many firms are grappling with. However, these risks can be reduced and even be eliminated by using Blockchain to offer identity and verification through an open ledger system.

A change in how the capital markets operate

Do you remember the saying that goes, “If you can’t beat them, join them?” Many mainstream operators are waking up to the reality that the traditional centralized financial system may not last forever. In fact, it could as well be on its deathbed paving the way for a decentralized and worldwide payment system in the financial markets. One such world-renowned institution making room for such an eventuality is NASDAQ. Currently, it is planning to launch a digital ledger technology that accommodates Blockchain and use it to enhance the way it manages the equity it offers to its investors.

Increased trust between smaller business networks

One of the most beautiful elements that make Bitcoin attractive is that it allows small enterprises to create a trading platform that runs on mutual trust. Under such arrangements, there are no superiors since everyone is a peer in a mutually trusting atmosphere.

Enhanced transparency between traders

With Blockchain in place, it is possible to create a robust and transparent trading environment.

A faster way for banks to pay suppliers

Suppliers are important pillars in the success equation of any business. However, failure to pay or a delay in paying them could lead to many problems on their side. But by getting Blockchain on board, banks can pay suppliers faster over the Net.

A death sentence to credit and debit cards

Lastly, the success of the Blockchain technology is spelling a death to some of the most treasured tools of prestige that have ruled the banking sector for some few decades—credit and debit cards. As we enter a cashless generation, Bitcoin will take a leading role in the way people pay as they bid their cherished credit cards goodbye.

With the world entering a cashless age, and the future of payments changing, are you ready to embrace the change? If you aren’t, then you need to look at what Bitcoin is offering to get a glimpse of what the future holds.

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