Addressing Digital Currency as a Business

Digital currency is one of the most exciting yet controversial aspects of current and, indeed, future business. Addressing it today can help future-proof your company, all the while offering something better for customers. As a result, governments are beginning digital integration backed by normal fiat currencies. This means digital will be treated the same as standard money, making the shift towards a more secure and private way of doing business for everyone.

Digital transactions are relatively new, yet they have been around for a while now. Payment methods, such as Google Wallet, Apple Pay, and even cryptocurrency apps, are used more and more by younger generations and older ones who embrace tech. Yet there are still some hurdles digital faces, and without normalization, most cannot get on board. People like Jonathan Martin of NFL fame are helping turn this around by helping people adopt BitCoin with Lightning Network.

From a customer-facing perspective, there are many arguments to be made for facilitating digital transactions. This could be with BitCoin ATMs, digital wallet readers, or payment options at checkout on your eCommerce site. All of these are alternative payment methods that customers appreciate. Additionally, you offer something competitors may not, forcing their customers over to your services. And customers will also appreciate your acceptance of new technologies.

With so many people using digital currency, it was only a matter of time before central banks began their push into the tech. Alongside fiat currency, some central banks are now considering or have begun using government-backed digital exchanges of their currencies. Since June this year, 11 countries are now using this system, with many more in the testing stages. This means digital currencies based on fiat money would be legal tender with the same backing.

There are well-known costs when using services such as banking between customers. Payment processors take a cut of the cost between a customer bank and a merchant bank. And these can be substantial depending on the business risk assessment. With digital currency, the costs are substantially lower and, in some cases, free. Costs are initially cheaper within the same network but are still cheaper than standard payment processor fees, outside the network.

Privacy is a major topic these days. Although there are strict controls in place when it comes to payment data, the system isn’t completely secure. However, digital payments offer enhanced privacy and security. Digital currency transactions don’t require the use of personal data to complete a transaction like a standard debit or credit card does. Therefore, they offer superior privacy and a degree of anonymity, something we could all do with, given the modern issues.