Cryptocurrency in the Fintech Industry

Fintech Industry

The global online market has been experiencing a boom over the past decade, but it surely has had its fair share of dips as well. As the new decade started off with 2020, the market looks to flourish more in the coming years. It found a firm ground at the onset of this year, and the achievements are remarkable. Cryptocurrency holds a position in the regal sect of this market; it has been one of the most popular online assets since 2008. The digital money has grown since then through the volatility to emerge as the game-changer.

Businesses have adapted to the use of cryptocurrency, suggesting that the world is moving past the era of liquid cash. Individuals around the world have been collecting these coins by purchasing them at a price, only to sell them or purchase another service later. The Fintech industry has also embraced the concept of cryptocurrency to bring about changes in their working pattern. Let us look at how the impact of cryptocurrency on the Fintech industry is for good.

Fintech and Cryptocurrency

Fintech, also known as Financial Technology, is a disruptive proposition that materialized into existence in the 21st century. Various companies are using it for the proper management of their business. Retail banking, fundraising, education, and investment management are some sectors and industries using Fintech. They have now adapted to executing automated services using cryptocurrency, and it has proven to have a beneficial impact on the system’s whole structure.

With central banks and commercial banks planning on developing their own cryptocurrencies, there is a demand for the highly safe payment systems. Fintech companies have been developing various pieces of software to detect fraudulent activities in cryptocurrency transactions. Financial institutions could use cryptocurrencies to enhance transaction with the identity verification process. Saving costs will be easier for these institutions while moving funds for the parties in the trade. Every activity in a transaction becomes more efficient with the combination of cryptocurrency and Fintech.

Benefits of Combining Cryptocurrency and Fintech

·         Easier Identity Verification

Eliminating fraud from transactions has become easier with the entry of Fintech companies into the picture. Faster and better transactions are ensured by the identity verification feature introduced by Fintech.

·         Bank Transactions Using Cryptocurrencies

Since many banks are exploring the opportunity to introduce their own altcoin, there is a high chance for tight competition. But with this innovative plan, the transactions will become easier to manage, and the transaction costs will be lower.

·         Payments Through Mobiles

The P2P concept is being used to make payments through the blockchain-based Dapps that make the transactions more transparent and convenient.

·         Better Accessibility to Loans

Banks usually take a long time to sanction a loan, and it is mostly due to the procedures it involves. With Fintech’s contributions to the digital asset’s functions through blockchain, customers can apply for a loan and get it approved faster at a lower interest rate.

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