The question is if the blockchain solution is doing payments more simple and safe?
Wirecard which is the online payments business and is experiencing insolvency proceedings this month, mainstream financial services like VISA, PayPal, and Mastercard are hurrying to fulfill the digital payments void, and be one of the first to give crypto payment cards, said specialists in the crypto industry.
Jerry Chan, who is the CEO of blockchain service provider TAAL, and Rod Hsu who is the President & Co-Founder of virtual currency platform Coincurve, they both admitted that the fight could be just what the industry demands to change the way that digital currencies are being used as a method of payment or technology.
But Chan moves beyond the need for mainstream crypto knowledge and points out blockchain can do payment services even more effective:
“Payment technology is actually already quite efficient. (…) The cost of credit cards is on fraud prevention and insurance, and this cost is borne by the merchants and their banks. Blockchain platforms that are transparent, immutable, and do not support coin mixing or hiding technologies like Bitcoin SV can largely eliminate fraud, thereby reducing this cost to merchants.”
CoinCurve’s Hsu told that the current payment ecosystem includes many functions in the process. This involves clearinghouses, banks, or intermediary payment service providers and it raises the fees and performance of settlement:
“Blockchain is a ubiquitous and global public ledger. Therefore, sending digital currencies across the table or around the world, settlements go directly onto the chain with no intermediaries keeping fees low with an almost real-time settlement visible on this public ledger.”
Whether the adoption of Bitcoin (BTC) can be recognized as a method of payment or technology, rather than a store of value to its continuation or not, Hsu tells that store of worth can just go as far as being conjecture without the property of serving as a medium of exchange. He also continues:
“This means if we are to see Bitcoin as a global currency, adoption of Bitcoin as a payment instrument is vital as it must fundamentally serve the purpose as a medium of exchange.”
TAAL's CEO believes that the lesson from Wirecard's matter for the crypto business is that financial settlements "are in place to protect the public from exactly these sorts of massive frauds and public consumer losses."
In the end, Hsu sums up that the crypto area should study about “transparency” after the Wirecard’s case, and continues that blockchain is, again, a stable and accessible technology to fully audit the movement of funds “at any point in time.”
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