Digital currency seems to have dazzled the world by its dynamics and unfathomable reach. It holds in it the key to many dead ends and unanswered questions. As we witness the era of economic freedom, let us tell you why it is bound to change the way the business world.
1.Faster and economical monetary transfers
Anyone who has ever worked with international clients has had to face the snag and the high cost of international transfers. But with the advent of digital currency, such transfers can be smoothly done without any borders or norms. Such economic freedom will give a boost to business all over the world and promote globalization. With no restraints, money is transferred in a matter of seconds using the safest and quickest passage. This also eliminates the involvement of a middleman, thus reducing the fee which is to be paid to materialize cross border transfers. Bitcoin being the most popular digital currency is currently being used all over the planet without any problem.
2.Safe digital payments
Sharing one’s financial details online, especially that of a credit card, doesn’t always feel safe. There is a similar hitch while dealing with clients abroad. Doing business with someone through a virtual world doesn’t provide much security either. You are always on tenterhooks till the time the money reaches your account. This is where digital currency acts as your savior. With advanced encryption, your payments are always safe.
3.Better global remittance
On an average, one in 7 families has a member living in a foreign land and earning their bread and butter. With more than $500 billion being sent home in remittance every year, the passage of money transfer needs to be quicker and more effective. Technology can pitch in making these transfers quick and cheap. If virtual currency is used, such transfers can be made directly using mobile phones, reducing the fees to only that of currency exchange. In addition to this, the time required for such transfers through traditional methods is much more due to the tedious process of going through various systems and regulations as compared to the expedited digital process.
4.A boost for e-commerce
In the times when credit card frauds are being experienced by online merchant on daily basis, it is proving to be a spirit dampener for many a business. Such frauds have made international business quite difficult and untrustworthy. But with cryptocurrency coming in the picture, the reversal of any kind of transaction is impossible. This eliminates the risk of bad debts and boosts worldwide trade. The friction of accepting payments is reduced and companies can expand globally.
Even online shopping seems like a piece of cake with the use of virtual currency as the process becomes much smoother. Products and services of small value are a particularly salient use case, as it involves minimal transaction fee.
5.Enables safe storage of wealth
People have sleepless nights over the fear of losing their wealth. They are always afraid that it might be stolen or confiscated. Digital currency allows you to keep your money safely in your e-wallet without anyone monitoring its movement or challenging its ownership. It is your own personal bank which is run by you and is always at your beck and call.
6.Provides a more stable currency
The euro or dollars can be seen fluctuating every day, depending on various factors. Digital currency has been more volatile in the past but over the passage of time it has shown much stability. It also shows signs of fewer fluctuations in the coming years, providing a much more stable currency than the other currencies of the world.
7.Provides smarter contracts
When an asset becomes completely digital, its movement can be hassle free. It opens doors for ‘programmed money’. With Ethereum smart contracts, people can enter into agreements without any hitch, with no barriers of borders. Escrow accounts are already used in large transactions, especially property. When the buyer has put money into the escrow, it reaches the seller only when the title to the property is handed over. Such ways of transaction safeguard the interests of both the parties.
Every person has had to ask for favours or oil palms. But digital currency has fewer gatekeepers, thus sparing the task of pleasing authorities or individuals to start a business or get your work done without any obstacles.
9.Makes it easy to emigrate
When people are able to carry all their money and assets digitally, leaving your country in hope of a brighter future won’t be much of a task anymore. Your e-wallet can be operated from anywhere and you are not at risk of carrying your funds physically or through any vigilant channel.
10.Safe money for the poor
Digital currency can be a boon for that section of society which doesn’t have a bank account. The underprivileged can access international markets, even if they are unbanked, and save themselves from inflation. Those who use mobile phone credits as a medium of exchange, sometimes have to pay a hefty fee of as much as 20%. Digital currency, if brought into use by this section, will improve their economic status and enable them to explore new ways of making money.
Digital currency is bringing economic freedom to one and all. Both the rich and poor are being benefitted by this virtual world of transaction as it is providing both security and independence along with accelerated transfers. People are finding it much easy to start and expand a business now. With no middlemen being involved and fewer regulations, it is creating ripples around the world. The day isn’t far when digital currency will be the way the world will trade.