It’s no news that cryptocurrencies have made a major impact on the way millennials perceive finances. But do you know that it is a blockchain technology based on the concept of a public ledger set to disrupt the healthcare industry with its advanced algorithm?
If you are a follower of Bit Signal then you must know it. The top Fintech companies are eagerly looking forward to adapting blockchain technology to their systems. As you might be already knowing that cryptocurrencies have taken the fintech industry by storm.
Many financial experts have predicted that Governments of many highly developed countries are soon going to accept cryptocurrencies as a legitimate form of payment. It’s nothing to be surprised at, given the fact that cryptocurrencies are thriving.
What Does the Term ‘Fintech’ mean?
If you follow the crypto industry closely, I bet you are aware of FinTech, commonly known as Financial Technology. In simple words, it is all about technologies that are designed in such a way that elevates our experience in using financial services. It is used to assist business organizations and help consumers keep track of their financial activities.
How can Fintech companies use blockchain and Cryptocurrency in their favor?
Fintech companies can use Blockchain technology in a lot of ways. Let me explain it to you briefly. Blockchain technology is the core technology on which Cryptocurrency works.
It is based on the concept of a public ledger when every transaction you make through Cryptocurrency is noted. Do note that you can only add to the public ledger; you cannot edit it. Everybody in the crypto ecosystem can see it.
Blockchain technology can speed up bank transactions. Cryptocurrency transactions happen in seconds, whereas normal banks take about a week or two for cross border transactions.
Add to that you have to give an account of every transaction you make to the bank and the legal authorities; there are no such rules in Cryptocurrencies. You are not obliged to give an account of your spending to anybody while transacting in the crypto space.
Furthermore, cryptocurrencies would help fintech companies build smart contracts on blockchain technology that would make it easier for people to understand who they are dealing with.
How Are Fintech Companies Using Cryptocurrencies?
A handful of financial technology companies are already making use of cryptocurrencies in different ways. For instance, The Swiss Company called Seba Crypto AG collected over $100 USD from investors for setting up the world’s first cryptocurrency bank. Their main motive is to bring Cryptocurrency into the mainstream currency and allow the users to trade in both Fiat and Cryptocurrencies.
Another fine example is JPMorgan Chase; they recently announced that they would be launching their own Cryptocurrency. They further went on to say that their crypto would let their customers make transactions on the blockchain that would lessen the risks of fraud by a huge margin. You can exchange JP Morgan’s cryptos to USD but can only be transferred to clients of JP Morgan Chase.
Top Fintech Predictions For 2021 By Financial Experts
Governments have been forced to take cryptocurrencies seriously as a result of the noise they are making. The Fintech companies have already started implementing blockchain technology in their systems, forcing governments and financial regulators of several nations to take cryptocurrencies seriously.
They are finally starting to acknowledge the potential that Bitcoins possess. Implementing blockchain technology in the financial sectors will make the transactions a lot safer and faster, but it will also bring in a good amount of efficiency.
According to many Financial Experts, by 2050, all the major Fintech companies will be using blockchain and Cryptocurrency.
All in all, the financial experts have predicted that by 2050, all the major fintech companies will be using Cryptocurrency. Fintech companies like Paypal and Square are standing out from the crowd and already using blockchain and cryptocurrencies for their financial activities; soon, more will join the trend.