Modern technology has changed the way we live our lives and is making things faster, easier, economical, safer, including the way we pay for things. Many countries are shifting to a cashless society and adapting to a more convenient method to carry transactions in the digital era.
According to a report published by Stats. Bis, only 1.3% of people in Sweden paid in cash, and this number is estimated to drop further to 0.5% by the end of 2020. The prominent age group transacting with cards and digital payments are between 18 and 38. Therefore, we are progressing to the future of cryptocurrency payments powered by blockchain technology.
Impact of Cryptocurrencies on Developing Economies
Developing countries and emerging economies are currently leading in mobile and digital payments with massive adoption of blockchain technology and cryptocurrencies such as Bitcoin and Ethereum for payment. While a majority of the population remains unbanked, cryptocurrencies have been embraced to store value and tackle hyperinflation.
But how can Blockchain technology assume a seamless transition to a cashless society? First, a blockchain is a public ledger of transaction receipts and records collected through a network that sits on the internet. It is how this information is recorded that gave blockchain its ground-breaking acceptance to solve the cash circulation and banking issues, with a cryptographically-secure database structure. This structure allows network participants to establish a trusted and immutable record of transactional data without the need for intermediaries or middlemen such as banks.