If there is one subject that has been beat into the ground this past year, hands down, it would have to be crypto currencies and their potential in the current payments space. It seemed like everywhere you went, people were all a buzz about their cryptocurrencies of choice. I will be the first to admit, the buzz comes with good reason. Especially when you hear account values easily doubling in a matter of months. Bitcoin in particular rose from under $1000 to over $19,000 per coin in less than 11 months. Those are truly staggering statistics. What is surprising, is that even though they have been around for many years now, this past year seemed to have thrown them into overdrive. Why though? Perhaps a tense global atmosphere. A means to curb the potentially unstable world currencies. Maybe its just a fad. Maybe all of them. Regardless of your personal feelings on the validity of this currency, it is growing in popularity by leaps and bounds. It is only natural that industries would begin to blossom around it. Enter crypto debit cards in the future of the
It was only a matter of time before cards came on the payment space scene offering crypto users the ease and ability to convert their coins into everyday pocket change. The benefit is overwhelming; regardless of whether the end user accepts crypto or not, the cardholder is able to covert their crypto-coins to whatever the local currency is. Where the cards are able to set themselves apart from standard credit or debit cards, at least from the consumer perspective, is that most charge no fees, offer strong exchange rates and even cash back incentives for using their card. With all these benefits, the potential growth continues to be limitless. Borderless transactions, excellent exchanges, no fees and numerous incentives. With all this upside, what, if anything, is the reason not to go in on this new currency?
Some opponents of the crypto movement contest that since the currency is not regulated, it can lead people to scams and create security concerns. As it is a newer currency or form of making transactions, there could possibly be kinks that need to be ironed out as it grows and changes with the markets, no different than anything else. Possibly the biggest hurdle that the creators of these currencies have to contend with is convincing people of the legitimacy of it. The people and organizations outright accepting cryptocurrencies, are a very small niche segment of the total population. Because it is not widely accepted, this can make it a bit impractical for most people to use on an everyday basis. The final issue that these producers need to get past is the uncertainty of its future. If there comes a time where the currencies are widely adopted by a majority of the populace, then there would be no doubt that it has the potential to succeed globally.
Where that tide seems to be turning, at least on a mainstream level, is that even the big players in the credit card industry are beginning to turn the corner on blockchain technology. Blockchain has revolutionized the industry by ensuring that the journaling of transactions are copied thousands of times over across the network of the internet. This ensures that the corruptibility of the ledger is near impossible due to the constant reconciling of the journals worldwide. Both Visa and MasterCard are making efforts to keep up with the infrastructure used predominately by currency organizations, allowing them to process transactions in a similar way. Visa is moving forward with Visa B2B Connect an MasterCard with MasterCard Blockchain, both of which could potentially aid in making the acceptance of crypto a reality.
As of 2018, there are dozens of crypto card companies already established and more that are springing up each day. With more people climbing on the cryptocurrency wagon each day, the industry will most definitely continue to develop and grow as this new year progresses. All these card companies will continue to push the success of the concept and bring the ease of everyday use to the forefront. Needless to say, do not expect the buzz around the cryptocurrency markets and blockchain to die down this year.