In the initial years, the cryptocurrency had a bad name and still many countries banned the usage of cryptocurrencies. There are many reasons for that, but the main reason is the illicit usage of bitcoin. Many money launderings cases have found in the past. There is no fault with blockchain technology but criminals and hackers have taken advantage of the new technology to deceive people.
Today, such activities were now regulated to a great factor. As a result, some countries have allowed the transaction of bitcoin and its alternative crypto coins. However, many countries still do not accept it as a viable payment system for some reason.
With the rising demand for bitcoin and some of the popular cryptocurrencies, banks and credit card companies are facing a lot of pressure in their business. They are opposing the adoption of cryptocurrencies in many countries. In addition, there is no proper infrastructure everywhere for regulation and adoption developed all over the world.
Further, only a few corporations are actually using cryptocurrencies. It has not widely accepted by small and medium-sized businesses. Because consumers are still confused about the whole currency system and how it works. They still have a fear of the technology and currency system. In this article, we will see whether or not cryptocurrencies are viable options for the retail business.
Cryptocurrency for Retail Businesses
But it is not widely used and there is still confusion about whether or not it can be a viable option for the retail business. Let’s see what Bitcoin boom experts say about this.
Impact of Fraud Activities
One of the biggest problems with digital currencies is consumers are not fully aware of the currency system. As a consequence, criminals and hackers are trying to use it for identity theft, and money laundering. Regardless of any legal actions, consumers are still in fear of using this currency system.
However, the cryptocurrencies will be widely accepted if blockchain technology comes up with a more secure verification system. If it will integrate a system which can confirm form both party with verification of their identity, consumers will accept crypto coins as a viable option for payment.
Impact of Decentralization
Retailers have to pay a big amount as transaction fees. Using blockchain technology is a viable option for payment as it has very low transaction costs. Decentralization payment has a positive impact on the usage of cryptocurrencies. Blockchain technology does not allow any third party for sending or receiving money. This significantly reduces the time of transaction and transaction fees. Moreover, merchants will get tax benefits by using cryptocurrencies.
Impact of Government, Banks, and Financial Institutions
As blockchain operates through a deregulatory system, the government of many countries has banned the usage of cryptocurrencies. Additionally, cryptocurrencies are big problems for banks. Many banks will lose their business if cryptocurrency will be used as mainstream for business transactions. So, banks and financial intuitions are opposing the usage of crypto in the retail market.
Apart from this, credit card companies are also losing their potential customers. So they are also the biggest constraints for the acceptance of cryptocurrencies. Some of the credit card companies are now using blockchain technology to sustain in the market.
However, some central banks have adopted the technology and providing services on blockchain technology. If banks have to stay in the market then adopting the technology can save their business otherwise, they will have to pay the price.
Cryptocurrencies are now taking their place in the business world. Some of the big corporations are using cryptocurrencies for their transactions. Consumers are now accepting crypto coins as a means of exchange. With a more sophisticated system and legal policies, cryptocurrencies can be a viable option for the retail business. It will take time, a lot of development in the blockchain field, and awareness about the technology.