Several years ago, using cryptocurrency was hardly mainstream. Cryptocurrencies were relatively new to the market, and few vendors – let alone commercial banks and the likes – utilized this form of currency. But in recent years, cryptocurrency has risen sharply in popularity. Large institutions and well-known investors have been endorsing the use of cryptocurrency, and others are beginning to follow suit. From the looks of it, cryptocurrency is here to stay, so there is no better time than now to assess the impact this form of currency is having on the financial industry and how it is impacting the delivery of financial services. Read on for all of this information and more!
CRYPTOCURRENCY IS ON THE RISE
Let us first look at how and why cryptocurrency is on the rise. There are a number of different factors that have contributed to the growing popularity of cryptocurrency, including but not limited to the following:
- Alternative store of value – cryptocurrency appeals to those concerned about market volatility and high inflation
- High profile endorsements – leading, multibillion-dollar investors have invested in cryptocurrency, which is encouraging others to do so
- Institutional endorsements – major financial institutions have started utilizing cryptocurrency, which is making the currency more mainstream
- Security improvements – improved infrastructure in the cryptocurrency is reassuring investors about safety and security related to its use
These factors combined (and more) are starting to transform the public’s perception of cryptocurrency and, in turn, morphing the financial industry.
CRYPTOCURRENCY’S IMPACT ON THE FINANCIAL INDUSTRY
As cryptocurrency gains traction with the general public, the financial industry is changing with it. One big change is that we are seeing greater diversity in payment methods. More companies and banks are accepting cryptocurrency for their transactions, which is also opening up the possibility that cryptocurrency may eventually displace other forms of currencies that have traditionally been “the norm.”
Another big change is that Bitcoin ATMs are gaining traction and becoming more widely available. As is the case with traditional ATMs, you can withdraw funds and initiate transactions – the only difference is that you do this with cryptocurrency rather than funds in your traditional checking or savings accounts!
CRYTPOCURRENCY’S IMPACT ON DEBT COLLECTION
Debt collection is a sector of the financial industry that will see some of the most significant changes with the rise of cryptocurrency. The process is likely to become increasingly automated, which will put greater pressure on those who owe money. There is a high probability that “bots” will take on more of a role in debt collection, rather than individuals or agencies collecting debts. Artificial intelligence has the potential to play a big role in this as well.
As such, for those individuals who are employed as debt collectors, this may shift the way that your job works. This is not to say that robots will replace humans in the debt collection process, but it means that individuals employed in this industry may need to adapt to shifting roles that will come with the rise of cryptocurrency and overall greater automation of transactional processes.