Is It True That Advanced In-Real-Time Payments Make Cryptocurrency Less Appealing?

The assumption that cryptocurrency is a fast, low-cost payments innovation is being put into doubt as real-time payment systems emerge in major economies throughout the world. As a result, it is inefficient, has limited capacity, and is unregulated, putting consumers at risk.

 

“Electronic payments have been developing for a long time,” says Elena Whisler, senior vice president of The Clearing House, which pioneered real-time payments in November 2017.

 

We are being obliged to conduct things differently from a distance due to the worldwide pandemic.

 

Businesses, on the other hand, tend to shoulder the majority of the cost of payments across all payment modes, she noted. Real-time crypto news can cost pennies, or fractions of pennies, according to her, and is frequently free for consumers.

 

She argues that cryptocurrency works in closed loop networks, making the transition from bitcoin to Ethereum and other digital assets challenging.

 

“What crypto professes to provide, our payment network can and will supply, and we will do it.” We can only perceive a few particular reasons why cryptocurrency exists right now: to hedge against currency swings or to provide an alternative method of acquiring goods and services.”

Real-time crypto news

To use bitcoin to buy goods and services, however, money must be transferred from cryptocurrency wallets to bank accounts.

 

Despite this, I believe the crypto market has a niche audience — consumers who are eager to set up investment mechanisms to buy and sell cryptos. Because the technology isn’t sophisticated or pervasive enough, people aren’t buying services with cryptocurrencies. People are experimenting with the idea, but it is still a work in progress. It is costly and time-consuming since it is not made available to us for use in our daily lives. “It’s an investment instrument for trading purposes,” says the author.

 

Proponents of cryptocurrency have welcomed it as a way to ease cross-border payments while cutting costs, but Whisler stressed that The Clearing House is also moving forward in this area.

 

‘We’ve been working on a proof of concept for cross-border real-time payments. We employed the EBA (European Banking Authority) clearing mechanism to fulfil that work, which was largely centred on the United States and Europe. It demonstrated the technological potential of transferring funds from the United States to a European financial institution and enabling the payment flow while obtaining confirmation in a matter of seconds, using minimum formatting changes to ISO 20022. The next step is to create a list of all the work streams that will be participating in participation.”