With online payment company Wirecard going bankrupt this month, traditional financial services like VISA, PayPal and Mastercard are scrambling to fill out digital payments and are among the first to offer cards for cryptocurrencies, experts in the crypto industry say. …
In an interview with Cointelegraph, Jerry Chan, CEO of blockchain service provider TAAL, and Rod Hsu, president and co-founder of cryptocurrency platform Coincurve, agreed that competition may be exactly what the industry needs to change the way digital currencies are changing. … used as a means of payment or technology.
But Chan goes beyond public awareness of cryptocurrencies and indicates that blockchain could make payment services more efficient:
“Payment technologies are really effective. (…) The cost of credit cards is fraud prevention and insurance, and these costs are borne by the merchants and their banks. Transparent and immutable Blockchain platforms that do not support coin mixing or hidden technologies like Bitcoin SV can dramatically eliminate fraud and thus Reducing these costs to merchants. ”
CoinCurves Hsu said the current payments system includes various roles in this process. This includes clearing houses, banks, or brokers who provide payment services and this increases commissions and settlement efficiency:
“Blockchain is a global ledger that is ubiquitous. By sending cryptocurrencies across the table or around the world, settlements go directly to the chain without intermediaries keeping fees low, and settlement is shown in almost real time in this general ledger.
Whether using Bitcoin (BTC) can be seen as a means of payment or technology rather than a store of value for its survival, Xu says the store of value can reach a speculative point without serving as a medium of exchange. He adds:
“This means that if we want to view Bitcoin as a global currency, the acceptance of Bitcoin as a payment tool is critical, given that institutions must serve a purpose as a medium of exchange.”
The CEO of TAAL believes that Wirecard’s example for the cryptocurrency industry is that financial rules “are in place to protect the public from this kind of massive fraud and consumer social loss.”
On the one hand, Hsu summarizes that the crypto sector must learn about “transparency” after the Wirecard incident, adding that blockchain is again an open and immutable technology that allows for a complete review of cash flow “at any time”.