THE RECENT STEPS TOWARD A CRYPTO PAYMENT SYSTEM IN FINTECH

While one can pick sides in the crypto debates of today, one thing stands firm – blockchain technologies are here to stay. Beneath the lively pro et contra discussion about the practicality of cryptocurrencies, steadfast technological progress is taking place.

 

THE INTEREST OF GOVERNMENTS WILL LIKELY BE THE STRONGEST PUSH TOWARD THE DEVELOPMENT OF PAYMENT SYSTEMS

If today an employer offered his workers a salary in cryptocurrency, it is very likely he would be refused. Granted, some ICO-launching projects have actually paid their employees in Ethereum tokens, and the argument could be made that crypto optimists expecting a market rebound would welcome such payments at a great discount. But given the current crypto market situation, one can reasonably expect that employees would rather have some fiat in their bank accounts than tokens in their crypto wallets.

There is another aspect that might facilitate bringing cryptocurrencies to par with fiat – acceptance for tax purposes. The foundation for this is being laid by experimental pilot projects such as the one conducted in Ohio, where bitcoin will be accepted for tax payments this season in an effort to improve government transparency. The state of Ohio also wants to project itself globally as a leader in blockchain technology – a position desired by many countries around the world. We can also expect governments going into partnerships with existing private blockchain ecosystems, such as Mongolia. Thorough tests are to be expected before such systems are made widely available.

 

STABLE TOKEN WITH CURRENCY PROPERTIES WANTED

Conventional economic insight highlights three characteristics a token should display in order to be able to function as a proper currency: a means of exchange, a store of value and a unit of account. It is not difficult to imagine a cryptocurrency meeting all of these criteria in the near future. 2018 has seen a proliferation of attempts to reduce crypto volatility through stable token projects. A successful stable token that leads to mass adoption would solve the store of value issue, thus automatically making the token fit for the remaining two requirements.

All the above mentioned scenarios have not reached fruition to date, but the process of germination has already begun. Blockchain technologies are being integrated into traditional financial services this very moment. Many headlines in financial news media attest to this trend, highlighting the interest financial institutions have in this emerging technological revolution.

 

CRYPTO SALARIES IN THE NEAR FUTURE – A PIPE DREAM?

While a look at crypto price charts might be discouraging today, it is not unreasonable to expect salaries and wages to be paid in crypto ten years from now. The blockchain potential for payment systems is being explored. In fact, some companies do not intend to wait that long. GMO Internet, a Japanese company, has already announced they will be paying employees a portion of their salaries in crypto next year. An Australia-based company Bitedge already declares it pays salaries entirely in crypto.

The big players in finance are not deterred by the current bear cycle. And neither should anyone else. Education and preparation will put users from any financial background in a position to benefit from the upcoming technological shift.

Image source: Shutterstock

 

David Prezelj
David Prezelj

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