How Cryptocurrency Could be a Game Changer In Fintech Industry?
The year 2020 turns out to be a remarkable one for the global online market. Cryptocurrencies have gained huge popularity day by day. Most of the people are start believing the technology behind cryptocurrency. Entrepreneurs are adopted to their business in cryptocurrency technology, and they are all interested to launch their own digital coin or crypto coin like Bitcoin for their multiple business purposes.
Cryptocurrencies are thriving in the Fintech industry. In this article, we have to see how cryptocurrency could be a game-changer in the Fintech Industry
Table of the content
- Overview of Fintech
- Does Fintech need Cryptocurrency?
- Which are the Top Fintech Companies Utilizing Cryptocurrency?
- The technology behind Fintech
- Benefits of using cryptocurrency in Fintech
Fintech is the combination of the word “Financial Technology. Fintech is used by companies to manage various aspects of their businesses, usually through the software on smartphones and computers. Fintech was initiated in the 21st century. It also works on different sectors and industries such as education, retail banking, fundraising, and investment management.
Does Fintech need cryptocurrency?
Fintech also needs the development and use of cryptocurrencies such as Bitcoin. Cryptocurrency has a massively beneficial impact in the fintech industry. For example many commercial and central banks, loan providers are exploring the possibility of introducing their own cryptocurrencies. Fintech companies are spending millions of dollars on developing systems that can be detected and prevent fraud. Cryptocurrencies can be used to enhance transaction security by verifying a person’s identity Because cryptocurrencies can be used in a distributed ledger and it provided detailed information on how transactions occurred during a specific period. After seeing the benefits of cryptocurrencies. Cryptocurrencies as the primary means of money transfer. Financial Institutions will be able to save on costs while moving funds more efficiently.
Which are the Top Fintech Companies Utilizing Cryptocurrency?
Companies that integrate financial services with technology are considered a Fintech company. They provide financial services through an online platform.
There are a lot of companies that fall under this Financial technology like Paypal, Paytm, etc.
Stripe is a payment processor that supports credit card payments and it allows individuals and businesses to receive payments over the Internet. Stripe operators in over 25 countries. It provides Bitcoin as a payment method.
Quoine was powered by blockchain technology it provides financial services like trading and exchanges and it was the first global cryptocurrency exchange officially licensed by JFSA, Japan Financial Service Authority. They recently launched an exchange called Liquid, Liquid was cryptocurrency one-stop trading portal, it allows the users to access a worldwide network of cryptocurrency exchanges.
It is a peer-to-peer payment technology company, they also guide their users to investing in cryptocurrencies. Circle allows users to send and receive payment through cryptocurrency. They have also launched Stablecoin for their business purposes.
Crypterium was one of the most promising Fintech company. They can be developing their own mobile app that allows users to instant payments in the cryptocurrency by NFC- Near Field Communication or QR codes using smartphones.
Not only this, there are a lot of companies like Ant-financial, Kyber Network, polymath, Blackmoon, Agri Digital, and many more companies that are utilizing cryptocurrency in Fintech.
The technology behind Fintech
Fintech Companies will need a better and more advanced system to deal with the demand and that’s where blockchain technology comes to play. The Blockchain is a technology based on the virtual decentralized network with blocks of information. Many of the Experts say that 77 percent of the financial services industries are planning to adopt blockchain in 2020. The biggest challenge in Fintech company is to face trust, so many fintech companies need a high-security system.
Blockchain is a series of immutable blocks, it allows companies to track the complete life cycle of financial transactions. Blockchain is the opportunity to create secure and safe financial products and bring innovation in the financial sector. The use of Blockchain can also be seen in the system of cross-border micropayments.
Blockchain technology is an entirely internet-based system and does not need any specific set up for operating. Only users can access the data and conduct transactions from any part of the world using their account public and private keys.
Benefits of using cryptocurrency in Fintech
After the success of Bitcoins, many banks are exploring the idea of introducing their own altcoin due to the benefit of easy transactions and also low transaction rates.
We already seen that Fintech companies are spending millions of dollars is to detect and eliminate fraud. The best part of using cryptocurrency is that its enhanced security and it makes the transaction more secure than regular transactions and it cannot be modified by anyone, hence the transaction evidence will provide by each and every transaction
Many startups and large companies are providing blockchain-based Dapps to their users to make payments through the P2P concept, because it may give convenient and more transparency without middleman action.
Increased Accessibility to loans
Normally, banks typically take time to approve loans. Fintech companies are works under the blockchain technology. So It makes it easy for the customers to get a loan at a lower interest rate with ease and the entire process being efficient and streamlined due to the involvement of cryptocurrency technology.
Still, most people use the traditional method of the transaction to manage the transaction flow but they are not getting a clear idea about how to use digital currency for their regular uses. But in the future, entire businesses surely starts to using cryptocurrencies to pay their services, especially for the ent process. With this avant-garde crypto technology, businesses will cut down the middleman activities from various processes. With crypto technology, businesses will reduce costs and makes their products or services cheaper for the end-users.
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