Crypto And How It Is Shaping Our Future

WhiteFin_crypto-shaping-future

In the early days of digital communication, a common future vision was a “paperless office.” Back then it sounded like science fiction. Today we realize that paperless communication is far less wasteful and more convenient to use. Just look at how much easier signing contracts is today compared to years gone by!

The same idea applies to money as it does other forms of communication. Paper money has been an important part of life for the past several hundred years. Today cryptocurrency is rapidly becoming a prominent part of our day to day lives.

Money is no longer an exclusive activity of economic institutions and banks, but it has also become a decentralized network that uses blockchain technology. The algorithms that power blockchain technology ensures that cryptocurrencies can be sent anywhere in the world, instantly, and without jurisdictional permission or barriers associated.

For cryptocurrencies such as Bitcoin, there is also a degree of anonymity in payment because crypto money works on a decentralized network. It is this cryptographic mail system that makes crypto money different from traditional payment systems.

The crypto economy has a long way to go until it becomes the dominant global economic system, but crypto technology is already changing our lives as well as the future of how we communicate about sending and receiving money around the world. In one sense, crypto is what global commerce should have been from the beginning.

The shift from centralized institutions to decentralized systems has been so pervasive that crypto money can come from anywhere in the world at any time. This allows people access to financial resources across the world, which creates the opportunity for crypto users to develop new business models and create a truly global network.

In the last few years, El Salvador have been receiving a substantial amount of international coverage as a result of their usage of Bitcoin. There are key reasons behind why digital currencies such as Bitcoin are so popular in El Salvador and how these factors have contributed to encouraging its adoption.

A study in 2017 found that approximately 29% of Salvadorans did not have bank accounts. This is the kind of upsetting statistic that sadly isn’t unique to El Salvador.

Driven by President Nayib Bukele, El Salvador adopted Bitcoin as legal tender in September 2021, in an effort to combat issues like this that currently hinder many countries across the globe.

The major factor that is encouraging the growth of digital currency use in El Salvador is a sharp increase in internet penetration. This has been primarily driven by the increasing affordability of smartphones and tablets, which have allowed more people to access information online on a daily basis.

The use of QR codes and digital currencies such as Bitcoin has made it much easier to transfer funds from person-to-person or shop-to-shop without the need for a traditional bank account or expensive technology. This is proven by chains such as McDonalds and Starbucks accepting Bitcoin payment from phones. Additionally, the Salvadoran government is implementing chivo ATMs across the country to provide more consumers access to Bitcoin. These machines allow for zero commission transactions.

The growth of the Bitcoin market in El Salvador is just one example of how crypto and blockchain technology is making it easier for people living under less economically competitive conditions, to access financial services and protect their savings from inflationary monetary policies.

Even with this increase in digital currency acceptance, it is important to remember that there are still many hurdles ahead of us before we can consider the market truly innovative. There are many countries that have less than 50% of their population banked, that could potentially benefit from implementation of similar technologies.

The increased use of mobile phones is also encouraging since there is already a well-developed mobile market in many countries, which could help serve as an entry-point for Bitcoin in these regions.

The key take outs from this are clear. First, many people around the world remain unbanked because they do not have access to banking services, and second, the use of mobile phones is increasing exponentially across developing economies. The two together create an ideal opportunity for Bitcoin, or similar, to provide access to financial products to those who cannot currently access them.

In countries such as El Salvador, Bitcoin is already beginning help people have access to digital funds and protect their wealth. The hope is that more countries in the future will benefit from these technologies.

How will cryptocurrency and blockchain technology affect our future? On industry specific point – how will decentralized currencies affect the global payroll industry?

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