Crypto as of now is like a commodity, but the future will be very different continue reading to know how will crypto replace physical currency in the future, most of these predictions are by considering countries like India.
DIGITAL WALLETS COMING TO CRYPTO BUSINESS
Most of the day to day transactions are now online. Even though banks have released their own application for bill payments and money transfer through mobile none of them received much traction like private wallets. These private wallets offered amazing discounts for transactions in order to increase userbase.
All of these wallets can be used to transact directly from your bank account, also they have another mode, keeping money in the wallet.
Here is what will happen, these wallets will trade on crypto like the started trading in gold and mutual funds.
If this happens crypto will now be available to buy on everyone's phone literally.
DIGITAL WALLETS ISSUING CARDS
As I said, these wallets can issue cards linked to the wallet. If users are able to store crypto and get a debit card issues, it will be a gamechanger. There are crypto-centric cards already available, but I am talking about popular digital wallets launching it. A card that can be controlled by mobile and linked to particular crypto, when you do transactions crypto should be automatically sold and expense should be met, there should be an option to sell crypto and store as fiat.
SCAN AND PAY
Similar to cards, wallets should add a scan and pay feature to crypto, It will then be similar to the normal digital transactions.
It is been said that several countries are looking to regulate cryptocurrency, like I said in my previous article regulation is far better than a total ban.
Till now we are able to make crypto part of the day to day life. Since these wallets are mainly used for shopping and bill payments, and most of them do not have a feature to send money to your bank account, the least resistance will be only expected from the government.
NEXT PHASE
Till now we are talking about selling crypto and paying bills. Due to the regulations and legal clearances, these wallets will refrain from allowing us to send crypto from person to person.
But by now, people will be ready to take this service, it will be mainly stable coins since others are at potential risk of losing value.
By this time there will be new regulations coming up, and once regulations are set up banks will get involved.
If the idea of stable coins is a success, it is likely that governments will launch a national cryptocurrency.
By 5-10 years from the date a country approves the use of crypto as a currency, the transactions that use physical money are likely to be in the rage of 1-3%.
In another 2-3 years, physical currency is likely to vanish.
The star of the show is Stablecoins, crypto was traded like a commodity until 2020. Now we have crypto that is backed by assets. It can be considered similar to the digital form of currency.
The world is now moving along with the trends, the following advancements already took place.
State-authorized cryptocurrency, as of today few sovereign states launched their National cryptocurrency. Most of these tokens are asset-backed. And according to statements put forward by respective authorities, cryptocurrency will remain a legal tender alongside fiat currency. None of these countries have announced a complete shift to cryptocurrency. If you want to know more about Countries that launched cryptocurrency, CLICK HERE.
Wallets are already in the cryptocurrency business.
Crypto based debit cards are already out.
Crypto based stock exchange system launched in Venezuela.
You may feel like it's a long way to the goal but, I am pretty sure some countries will reach their long before the estimated time.
which country will be the first to go completely crypto?
SWEDEN--
Sweden already has a cashless economy, only about 1% of the total transactions in Sweden are made using cash. Sweden started research on a national cryptocurrency long before. As of now "e-krona" project of Sweden is said to be complete and will be launched soon.
So according to me, Sweden will be the first country that can successfully adopt a blockchain-based financial system in its highest form.
