Facebook launched Libra Stabitcoin earlier this year, and the move is likely to have an impact on the mixed global economy. But it also shows the potential role of blockchain and digital currency in the financial sector.
However, there are concerns that the retail payment industry is already highly saturated. Jason Choi, founder, and host of BlockCrunch Podcasts tweeted that the retail markets of large economies such as the United States and China are dominated by highly saturated or largely traditional payment platforms, leading to little development of digital currency platforms.
Alipay and WeChat currently occupy 90% of China’s digital payment market. With the benefits of uninterrupted mobile and biometrics, it will become even more popular in China in the future. In addition, the government’s recent heated debate over the introduction of the digital renminbi has made it harder to find a place for other digital currencies. Of course, this is true not only in China but also in other parts of the world.
Choi believes that these more fragmented markets in Southeast Asia will have the advantage, as “there are more currencies, mobile payments are still evolving, remittance rates are higher and non-bank interest rates are as high as 70% or more” which is a good number. Payment options may be suitable for promotion.
In Southeast Asia, cash is still the main transaction method. At least 44% of e-commerce transactions are in cash. ID IDC expects this trend to continue for at least three years. This means that digital payment companies still have great potential for growth.
Felix Mago, the co-founder of Digital Currency Payment Solutions Dash Next, says it’s all about enhancing the user experience: “User-centricity, user-pricing and problem-solving are key to a successful entrepreneur in a blockchain.”
Development vs. Subversion
Sabrina Kim, vice chairman, and chief executive of payment company Blucon, has adopted a more practical approach, namely debit/credit cards, which is fusion rather than a complete evolution. “We can say that the infrastructure currently provided by our debit card (blockchain card) is a perfect solution – the same structure is used in day-to-day transactions. To apply in the current market, digital currency needs to be converted to integrate with existing digital payment methods such as bank cards, Credit card) “
To this end, Blucon has decided to collaborate with existing financial institutions to convert global digital currency into consumable cash through a bank card. This approach is acceptably easier than businesses spending a lot of time switching to new infrastructure.
Kim believes that infrastructure can prevent merchants and users from accepting digital currency on a larger scale: “Many companies are trying to add digital currency to bank card specifications or the concept of cold wallet, and this is only possible when other payment terminals accept digital currency. Acquisition of digital currency merchants for this and only possible Tun card reader and infrastructure investment to spend a lot of time, including the need to purchase “”
Anatoly Resin, co-founder and chief blockchain architect at Blockchain Analysis and Intelligence Agency Persicu, said digital currency payments could bring transparency and the benefits of real-time tracking and also trigger some reactions through smart contracts.
“Monitoring for payment processing companies will help manage infrastructure more easily and efficiently so that deposits can be tracked in real-time, and even automated response to deposit procedures.” This will increase the speed of settlement of digital currency (even between digital currency and Fiat currency), but also to improve the transparency of digital currency processing companies. “
Control and consent
Hikaru Kasai, executive vice president of Elevate Ventures and Advisory, said, “The nature of trust in the financial industry makes supervision particularly important to ensure the fairness of the way individuals and entities manage assets, so providing digital currency-based payments to traders and Traders’ declaration to ensure adequate protection of customers, KOY Aisi (Know Your Customer) and AML (Anti Money Laundering) and must comply with the terms and conditions. “
“Existing platforms incorporate traditional bank card payment processors, and emerging technologies are primarily aimed at combining these two solutions to ensure accessibility and user identity, with the aim of digital currency payment solutions.”.
For blockchain, following existing credit card values is for consent only. “The use of debit cards complies with the provisions of the Financial Law. Therefore, we do not apply the new regulatory regulations, we follow the existing legal rules.”