It is too early to judge the positive experience of El Salvador, which has adopted bitcoin as an official means of payment. So far, only six months have passed and this is too little for financial payments. But it is unlikely that the example of El Salvador will be followed by other states that have their own currency and a healthy economy.
The traditional payment system of states, if it will undergo changes, will be insignificant. Banks will continue to implement blockchain technology in payments and issue their CBDCs. Most likely, we should expect some decrease in the volume of cash in circulation. But in general, the traditional payment system will remain.
Topic: The beginning of the end of traditional payment processors? (Read 617 times)
Cross border payment has been a headache in some judiciary countries and crypto has been a headache paracetamol for some people but despite that, it's not match for the number of people out there. Visa till today still has more throughput and efficiency to effect large transactions for everyone, Bitcoin on the hand is still very low despite improvements. If everyone decides to come on board into cryptocurrency, many chain will collapse and have lots of down time.
We need to scale up the transaction throughput to match the number of demands in traditional ecosystem.
We need to scale up the transaction throughput to match the number of demands in traditional ecosystem.
I had a serious question from an economics student in my country, and he was intrigued by the news that El Salvador had adopted Bitcoin.
He said: Would it be enough with the current available supply, if all countries adopted Bitcoin as a legal payment like El Salvador did? if enough what is the reason?
As someone who has limited knowledge, of course, I can't answer it scientifically with strong references. So dealing with this exact topic would be invaluable for me to gain enlightenment from those of you who understand more than what I know.
thanks ...
Regarding Bitcoin offers, it will be enough for all countries that want to use Bitcoin as a means of payment in the future. It should be borne in mind that each bitcoin contains one hundred million satoshi. The high price of bitcoin will allow you to pay with a certain amount of satosh.He said: Would it be enough with the current available supply, if all countries adopted Bitcoin as a legal payment like El Salvador did? if enough what is the reason?
As someone who has limited knowledge, of course, I can't answer it scientifically with strong references. So dealing with this exact topic would be invaluable for me to gain enlightenment from those of you who understand more than what I know.
thanks ...
The fact that El Salvador accepted bitcoin as a national means of payment, and even taking into account the fact that Bangladesh is already considering such an opportunity in its country, does not mean the beginning of the end to traditional payment systems. We see that weak backward states, where there was not even a national currency, are interested in bitcoin. The developed countries will not agree to this.
People start using crypto as they see many obvious advantages of it over fiat money. One of them is freedom. People can freely transfer any amounts of money with low fees (on Polygon, Tron, Binance Smart Chain). I don't think that government will let crypto replace traditional bank system in the nearest future as they can't not to regulate financial sphere of people life.
If Bitcoin continues to rise, there's a high probability payment processors will adopt it for their own benefit. After all, everyone wants a pie of the pie. I don't think payment processors will go anywhere since Fiat is too big to fail. Crypto may be faster and cheaper to use at times, but it's widely unstable in price. This makes Fiat a true winner for day-to-day payments.
We're going to have to see whenever El Salvador's decision to adopt Bitcoin as legal tender, will force payment processors to close up shop. I highly doubt that'll happen because of the reasons described before. It seems to me that crypto and payment processors will co-exist for generations. Just my thoughts
That's what people do not understand. People think that payment processors, banks and other places like stock market companies and such are "afraid" of bitcoin or crypto because it may takeover. What they do not realize is that if there is a dime to make from it then these places will jump on it. Binance and Coinbase are making so much money from it, it is only matter of time for Banks to get involved.We're going to have to see whenever El Salvador's decision to adopt Bitcoin as legal tender, will force payment processors to close up shop. I highly doubt that'll happen because of the reasons described before. It seems to me that crypto and payment processors will co-exist for generations. Just my thoughts
Your bank allowing you to buy/sell and hold bitcoin is not too far away, that will happen eventually and during that period you will realize how fragile crypto regulations are and how quickly it can change. Since, these places love to bribe politicians and politicians love to get bribes, they will just pay them to make a law like that and allow banks to do something similar. If exchanges are allowed, banks getting into it should not be too difficult to allow neither.
The things that make people leave traditional payment processors are complicated procedures, large transaction fees and of course a weak security system, crypto is the best solution to make all things related to assets and transactions easier, cheaper and of course high security, this is what will make traditional payment processors soon disappear on earth.
Expect Moneygram or Western Union to start accepting Bitcoin in their business just like PayPal did i am sure they will come up with something that could sustain their business. The reason why they have a billion market capital is obvious, not everyone is using Bitcoin and there are countries that relay on these payment processors for long distance money transactions 
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.If Bitcoin continues to rise, there's a high probability payment processors will adopt it for their own benefit. After all, everyone wants a pie of the pie. I don't think payment processors will go anywhere since Fiat is too big to fail. Crypto may be faster and cheaper to use at times, but it's widely unstable in price. This makes Fiat a true winner for day-to-day payments.
We're going to have to see whenever El Salvador's decision to adopt Bitcoin as legal tender, will force payment processors to close up shop. I highly doubt that'll happen because of the reasons described before. It seems to me that crypto and payment processors will co-exist for generations. Just my thoughts
There are more and more cases of hacking and complaints from payment processor users, and now there are payment processor applications that replace if a loss occurs but as usual claims for replacement take a long time, poor security systems make us have to leave the payment processor and immediately switch to crypto.
The crypto community that continues to increase and the daily transaction volume that reaches more than $150 billion certainly makes payment processors worried, if there is negative news about crypto then I'm sure most of it is from payment processor sources because since crypto has been shining, everything is done to stop it, and in fact crypto continue to succeed and will make the payment processor die soon.
Yes, the truth is that I did not know that it had such a large number of payment processors in free fall, obviously this is still a long way off, for example in Venezuela the payment processors are mostly dead, both Visa and Master Card credit cards are history , they do not generate any type of credit, now the payment processors that are used the most are with Zelle, and now they will have more restrictions, which means that it will no longer work.
The only payment processor that is enabled in some stores, such as the one called Traki, if they accept cryptocurrencies, both BTC, USDT, TRX, and it is the only store that I have seen that does not have any payment problems.
The crypto community that continues to increase and the daily transaction volume that reaches more than $150 billion certainly makes payment processors worried, if there is negative news about crypto then I'm sure most of it is from payment processor sources because since crypto has been shining, everything is done to stop it, and in fact crypto continue to succeed and will make the payment processor die soon.
But Moneygram and WU were downhill and unsustainable businesses from the get-go. Crypto was probably just a catalyst in doing this.
Honestly, I'm not even sure why WU stock is still around and why it has a $8.5bn market cap. It's quite clear that their business model is archaic even by normal banking standards in the 21st century and most of their customers are fraudsters.
Expect Moneygram or Western Union to start accepting Bitcoin in their business just like PayPal did i am sure they will come up with something that could sustain their business. The reason why they have a billion market capital is obvious, not everyone is using Bitcoin and there are countries that relay on these payment processors for long distance money transactions Honestly, I'm not even sure why WU stock is still around and why it has a $8.5bn market cap. It's quite clear that their business model is archaic even by normal banking standards in the 21st century and most of their customers are fraudsters.
. one state that previously did not have its own national currency and less than two months ago accepted bitcoin as a means of payment on its territory hardly already means the collapse of the payment system that has existed for centuries.
Surely we must need some time before concluding anything about what is going to bitcoin do in terms of payments and how existing payment system will do against bitcoins. With the help of few mobile apps based wallets and BTC lightning based payment system, I guess they could enjoy bitcoin payment system and when they save in bitcoins for at least 4 years then they may get power to fight against inflation.In my opinion, both bitcoin and traditional payment system are going to coexist in El Salvadar which might take time to have only one as both merchants and people must need time to experience and to decide like which is better and which they really need.
But at the same time, it's understandable the numbers are low, who would use bitcoin to buy stuff in a bull run? It's damn normal, even I would do the same.
The poeple who don't care about BTC have long sold their 30$, the rest are keeping them or if they buy on top of that hold that also, so I assume that just as in other countries the percentage factual daily-weekly user would be around 1% of the ones holding coins.
The poeple who don't care about BTC have long sold their 30$, the rest are keeping them or if they buy on top of that hold that also, so I assume that just as in other countries the percentage factual daily-weekly user would be around 1% of the ones holding coins.
So, when Bitcoin is in bull market, no one wants to pay with it because it will go higher, but when it's in bear market people either panic sell it for fiat or double down on hodling because now it's too low to spend it. This is why volatility is so harmful to Bitcoin's adoption as a currency.
In addition, one state that previously did not have its own national currency and less than two months ago accepted bitcoin as a means of payment on its territory hardly already means the collapse of the payment system that has existed for centuries. To draw such a conclusion, it takes much more time and in any case, more than one state that will follow the example of El Salvador.
These traditional businesses have to compete with bitcoin in terms of fees, and that can be done by reducing the fees. However, since El Salvador promotes bitcoin, I doubt MoneyGram and Western Union will be able to survive in this business competition, and you are right, it could be the beginning of their fall as some countries are also considering to legalize bitcoin and follow the path of what El Salvador has taken.
I think the traditional system can survive maybe if they start adopting the digital means of operations because customers can only patronise platforms that have diversify there operations. PayPal for example has started operation in bitcoin and other altcoins, money gram, banks Western Union need to do this too. Countries have started adoption of digital mode of transaction like Nigeria flagged off digital currency this week.
The era of traditional money transfers is coming to an end and this business, if it does not disappear completely, will significantly reduce its influence in the world. Other countries will follow in the wake of El Salvador, and millions of new users will join the ecosystem. What do you think about this?
I think the shift to a cryptocurrency-based payment is still far from a global-scale implementation.
Given the fact that majority of the countries are either third-world or underdeveloped, such implementation would heavily prejudice these countries due to forcing them into a position where payment method would require some sort of technology. Though I can see that the future transactions would heavily depend on the technology behind BTC (blockchain), fiat would still dominate.
It is all the more premature to conclude that a successful experiment by El Salvador will have a devastating effect on the existing payment system. Cryptocurrency has a number of advantages, but it also has serious disadvantages.
The president of the central american country of el salvador has recently proposed the introduction of bitcoin as the second legal tender and if implemented, el salvador would make history as the world's first independent state to introduce the digital currency bitcoin. No country will be affected by the competition even if its business decreases it will rise again. Bitcoin transactions will be temporarily suspended if the value of bitcoin declines to minimize the effects of extreme volatility or price fluctuations the country became the first in the world to officially accept bitcoin as a legal tender.
It is hard to see anyone that knows about Bitcoin and what they can do with it, still making use of MoneyGram and Western Union when they are doing transactions. I myself, since I discovered bitcoin, I can’t remember the last time I have had to go to the bank to carry out an international transaction, because people who I am doing the transactions to abroad are all making use of bitcoin and I can easily stay at home and send whatever amount of money they need to them instantly.
So, why would I have to make use of the bank, when I have enough bitcoin and altcoins in my wallet and I can do that same right from the comfort of my home? So, they lost a customer already.
So, why would I have to make use of the bank, when I have enough bitcoin and altcoins in my wallet and I can do that same right from the comfort of my home? So, they lost a customer already.
Crypto may have certain benefits for international payments, but the limited transaction capacity and unstable prices is what "kills" it. It's this reason why traditional payment processors are still relevant even with crypto/Blockchain tech in play. I don't see crypto replacing traditional payment processors anytime soon, especially when Fiat is a dominant player in the world's economic system. Crypto will only serve as an alternative monetary system for those who need it the most.
One thing for sure is that El Salvador's decision to adopt Bitcoin as legal tender will greatly boost crypto's mainstream adoption. But it will not signal the end of traditional payment processors. I'm fine with that as long as crypto remains decentralized and censorship-resistant. Just my opinion
El Salvador is under surveillance of every country. Once again it has made use of the dip buying 420 bitcoins. Now the country owns 1100 bitcoin. The success of El Salvador will make a big change in market adoption as it is the one to take a perfect decision at the right time even when there is group opposing the adoption.
Bitcoin takes way too long and is too expensive as a payment processor. Other crypto's are suitable (i.e. Ripple, Stellar) but they are setup to profit in fiat from the use of their projects. They are not structured as competition to fiat. They are simply a cheaper way to settle large remittances in a shorter time to take advantage of fiat markets. The technology is there but the motivation behind them is lacking a full vision.
It is hard to see anyone that knows about Bitcoin and what they can do with it, still making use of MoneyGram and Western Union when they are doing transactions. I myself, since I discovered bitcoin, I can’t remember the last time I have had to go to the bank to carry out an international transaction, because people who I am doing the transactions to abroad are all making use of bitcoin and I can easily stay at home and send whatever amount of money they need to them instantly.
So, why would I have to make use of the bank, when I have enough bitcoin and altcoins in my wallet and I can do that same right from the comfort of my home? So, they lost a customer already.
So, why would I have to make use of the bank, when I have enough bitcoin and altcoins in my wallet and I can do that same right from the comfort of my home? So, they lost a customer already.
Crypto may have certain benefits for international payments, but the limited transaction capacity and unstable prices is what "kills" it. It's this reason why traditional payment processors are still relevant even with crypto/Blockchain tech in play. I don't see crypto replacing traditional payment processors anytime soon, especially when Fiat is a dominant player in the world's economic system. Crypto will only serve as an alternative monetary system for those who need it the most.
One thing for sure is that El Salvador's decision to adopt Bitcoin as legal tender will greatly boost crypto's mainstream adoption. But it will not signal the end of traditional payment processors. I'm fine with that as long as crypto remains decentralized and censorship-resistant. Just my opinion
Now this is the real question. I am sick and tired of people talking about how bitcoin or crypto could replace fiat and that's not what it is all about, crypto should not be replacing anything in the fiat world, it wasn't even created for that neither. However payment processors have been living a great life for a long time, without much competition and we should have been using crypto for that purpose to begin with.
Unfortunately the amount we are spending on each transaction is too much for most coins at the top, bitcoin and eth costs so much to spend and you can't have payment processors charging that much. However if we could lower that, and make it under 50 cents, then I am pretty sure it could replace most of the payment processors in the world.
Unfortunately the amount we are spending on each transaction is too much for most coins at the top, bitcoin and eth costs so much to spend and you can't have payment processors charging that much. However if we could lower that, and make it under 50 cents, then I am pretty sure it could replace most of the payment processors in the world.
I'd be okay with crypto swapping out fiats, that's the end goal for most bitcoiners but I'd settle for Bitcoin acting as a hedge against irresponsible fiscal policy. In the end, Bitcoin most likely will act as a competitor currency which will force government to keep their spending in line. Granted, it'd be easier for government to flat out ban crypto as a currency or alternate payment processing system outright, but their enforcement wouldn't be successful.
On the note of fees - keep in mind, the fees associating with modern day payment processors are not exactly cheap. They're complicated, centralized, and rack up a cost themselves.
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