Cryptocurrency for E-commerce

Cryptocurrencies for ecommerce

Cryptocurrency for E-commerce

E-commerce payments has transitioned from the simple Online Card Payments or Cash on Delivery to Digital Wallet, UPI and many others. So, what’s the idea of Cryptocurrency in E-commerce? First things first, what is cryptocurrency? Cryptocurrencies are decentralized digital currencies adopting encryption standards. Cryptocurrencies are difficult to counterfeit or trace due to complex encryption and are not governed by a single institution like a Bank. Utilizing Blockchain technology, which acts as a shared ledger system and utilizing shared system resources for processing. But with the current situation for Cryptocurrencies doesn’t seem promising due to the ban of usage of digital currencies across different countries including India for reasons that regulation of cryptocurrency is difficult due to which the rise of illegal transactions would add up to fraud. But how does it benefit the E-commerce market? Most primarily, quick transactions can be possible since the involvement of the bank is not there and the payment approach is more direct rather than a merchant approach. Cryptocurrencies also attract lower fees compared to other digital payment methods since commission for each transaction does not have to be paid to the bank. With AES encryption techniques, there is heightened security which is difficult to trace or counterfeit. Since cryptocurrency does not vary based on country provisions, the utilization of this currency expands on a broader market with standardized currency utilized everywhere. The reason cryptocurrency is not seeing potential for growth in E-commerce is its nature of being highly volatile. As mentioned before, cryptocurrency is not monitored or regulated by any financial institution which makes prediction of the cryptocurrency value difficult which makes online purchases highly dependent on cryptocurrency value.  Cryptocurrencies were once a talk for transactions and also at some markets cryptocurrencies are legally acceptable but its transition as a default payment solution would be highly doubtful. The form of cryptocurrency being used today by few E-commerce platforms are Cryptocurrency wallets, so these payment methods might stay for some time. Since this tech is comparatively new and would take some time to mature and evolve to be formally accepted worldwide, we need to wait and watch on how the future market accepts this technology.