What form of digital assets will be the future of payments?

There is no doubt that the world of payments is changing. Not only did the introduction of Bitcoin, Ethereum and other cryptocurrencies revolutionize the way money is transferred across the world, but the rise of mobile wallets, digital point-of-sale systems and global interoperability are all pushing for a more open financial ecosystem. Since digital currencies are a relatively new technology, nobody can say with certainty what form they will take in the future, and that makes it an exciting time to be involved in this space.

Register now on Binance, add 50$ and get 100$ bonus voucher!

Is electronic money the future of payments? Or, is it the demise of cash? Electronic money is a great way to send money from one person to another. Imagine sending money to family without having to wait for a check to arrive in the mail. Or, sending money to pay a bill at your bank without having to go to the bank and wait in line. The problem is, these electronic wallets don’t always work the way you’d like.

In the past, many people have used or relied on cash to transfer money, pay bills, and buy things. But, as we have seen, cash is becoming a thing of the past. A lot of people are adapting to the digital world and are looking for other solutions. When it comes to the future of payments, there are many factors that will have a direct impact on the way we pay each other.. Read more about what are digital assets and let us know what you think.


We are living in an era where digital assets are becoming more widely accepted. Digital assets are becoming more popular among everyone from individual consumers to conventional banks and financial service providers. Many of these assets claimed to disrupt financial markets and big incumbents, and although they have gotten a lot of attention, they haven’t lived up to expectations. However, big organizations are taking notice: according to a study by the Bank for International Settlements, 86 percent of the world’s central banks are looking into digital currencies.

They realize that, despite the fact that we are in the midst of a golden era of innovation, payment methods are nonetheless somewhat antiquated. So, in my opinion, there’s no reason why today’s payment systems won’t follow in the footsteps of sectors that have been revolutionized by new technology over the last decade.

After all, we now live in a digital environment, therefore it’s only natural that money and assets should follow suit. But, in the next five years, is this feasible? Will the same technologies and types of digital assets be used?

Cryptocurrencies are the next step toward a cashless world.

Large companies are only getting started with digital assets.

Cryptocurrencies continue to pique the attention of financial institutions. Goldman Sachs conducted a study of over 300 of its high-net-worth customers and discovered that 40% of them had already invested in cryptocurrency. Recent announcements include Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second-largest bank, launching a Bitcoin (BTC) trading service for private banking customers in Switzerland, and Citigroup exploring trading, custody, and financing services.

Apart from banks, payment companies like MasterCard and PayPal are getting into the cryptocurrency game by taking payments from their consumers.

Register now on Binance, add 50$ and get 100$ bonus voucher!

Can’t seem to defeat ’em? Become one of them: Bitcoin is supported by Mastercard and Visa.

Then there are digital currencies issued by central banks (CBDCs). Infrastructure companies are attempting to market themselves as CBDC-ready. SWIFT and Accenture recently released a joint study outlining how it might function as a possible CBDC carrier if they become a reality. Furthermore, central banks all around the globe are looking at CBDCs and trying to maintain public confidence in money and payments. These retail and wholesale CBDCs may accomplish so by providing security as well as the distinctive characteristics of finality, liquidity, and integrity. The most promising CBDC design, for example, would be linked to a digital identity and require users to authenticate themselves in order to access money. This new enterprise encourages innovation that benefits the public good.

What impact did CBDCs have on the crypto sector in 2020, and what will happen in 2021? Experts respond.

However, the growth of cryptocurrencies, CBDCs, and other types of digital assets is still in its early stages. Before joining the mainstream, these assets must become more standardized, secure, and strong, according to almost universal opinion.

Regulators are paying attention to the shift.

Financial authorities and central banks are expected to scrutinize digital assets closely in the coming years before allowing them to be used as a method of safe payment. This is understandable. Anything that may jeopardize the smooth running of the international monetary and financial system will be met with resistance by the system’s gatekeepers and those in charge of its operations and security.

The Basel Committee on Banking Supervision, for example, has raised capital requirements for banks with exposure to volatile cryptocurrencies to reflect greater risks and worries about financial stability. Banks would be obliged to maintain capital equivalent to their risk under the plans. As a result, a $100 exposure to Bitcoin would need a $100 minimum capital requirement.

Will crypto adapt to regulation, or will regulation adapt to crypto? Experts respond.

This may deter licensed financial institutions from becoming engaged in cryptocurrencies or expanding their current offerings. While BBVA has offered trading services in Switzerland, it has stayed away from other markets due to ambiguous and non-standardized rules.

However, under these ideas, not all digital assets would be punished as harshly as cryptocurrencies. Stock tokens and stablecoins would fit within modified current minimum capital requirements for banks, possibly making them a more feasible alternative.

As widespread usage approaches, stablecoins pose new challenges for authorities.

At a fork in the road

For the time being, cryptocurrencies remain volatile, while stablecoins provide a more safe, transparent, and stable alternative, and I am a strong believer in their future, particularly owing to their fast settlement rates. Money gets connected to what it pays when data is included in the currency. This has a lot of automation options, so it’s a good candidate.

CBDCs, which are regulated and issued by central banks, are perhaps the most probable kind of digital asset we will embrace. Significant testing has already taken place, and this kind of digital asset would guarantee robust supply, governance, and regulation, just like fiat currencies do now.

End-user buy-in — big companies, SMEs, and individual customers — will be critical to the success of any of these digital assets. And, in the end, success will be judged in decades rather than years.

There is no financial advice or suggestion in this article. Every investing and trading choice has risk, and readers should do their own due diligence before making a decision.

The author’s views, ideas, and opinions are entirely his or her own, and do not necessarily reflect or represent those of Cointelegraph.

Laurent Descout is the co-founder and CEO of Neo, a European B2B neobank headquartered in Barcelona. He is a serial fintech entrepreneur and investor and has been a financial advisor in asset finance for more than 10 years. He holds a master’s degree in banking, finance and insurance from Paris Dauphine and the Investment Advice Diploma in Derivatives from the Chartered Institute for Securities & Investment.

If you’ve ever thought of buying and selling cryptocurrency, you’ve probably done so through platforms such as Coinbase. While Coinbase was created with the intention of providing an easy way for cryptocurrency traders to buy and sell, it’s not the most user-friendly platform. And while Coinbase offers a variety of payment methods, such as credit and debit cards, it’s not a platform that would have been designed for those who want to buy and sell cryptocurrency with an easy to use payment method.. Read more about central bank digital currency pdf and let us know what you think.

Related Tags

This article broadly covered the following related topics:

  • what are digital assets
  • what is the future of digital currency
  • what are digital assets in a will
  • examples of digital assets
  • blockchain and digital asset project wharton

Register now on Binance, add 50$ and get 100$ bonus voucher!

Recent Articles

Tonga accepts Bitcoin donations amid tsunami onslaught

A small island of Tonga has been hit by a tsunami, and the country is calling for donations in Bitcoin. The nation’s Prime Minister...

How to Buy Solana (SOL) in India

It is important to know how you can buy SOL in India. It’s no secret that the Indian market has only recently begun to...

How to Buy Flow (FLOW) in India

Flow is a cryptocurrency that was introduced in June 2018. It uses the Ethereum blockchain platform, but has its own built-in digital currency called...

Moonbeam Goes Live on Polkadot, Becomes its First Fully Operational Parachain

Moonbeam, the world’s first fully operational on chain scaling solution was released into the wild this week. The Polkadot-powered platform aims to provide scalability...

Stacks ecosystem becomes #1 Web3 project on Bitcoin

The Ethereum blockchain, which powers the Stacks ecosystem’s token STX, has become the most important web3 project on Bitcoin. The announcement is a sign...

Related Stories