Cryptocurrencies are constantly making the headlines these days. If it’s not news that the value of Bitcoin has hit a new record high, it’s news of a new cryptocurrency joining the digital money sphere. This new wave of interest in crypto coins has made buying and selling crypto increasingly mainstream.
But, buying, holding, and selling cryptocurrencies when their value appreciates is no longer the only way to manage digital assets. New opportunities to spend virtual currencies and give them practical, everyday use are aiming to change the way people worldwide make payments.
Recent reports show that crypto payments have been steadily increasing, with over $12 billion transferred over the Bitcoin, Ethereum, and Litecoin networks daily. A good reason for that is the increase in the number of big brands who accepts bitcoin as payment, as well as other crypto coins for their goods and services.
Although crypto isn’t close to replacing fiat currencies just yet, adoption rates are definitely on the rise. More than just a form of alternative investment, digital currencies are becoming valid payment options so that you can now use them to purchase different goods and services.
As the entire world is now embracing crypto, merchants are increasingly employing in-store and online tools to be part of this next wave of revolutionary commerce. Accepting crypto also opens merchants up to, so far, an untapped audience of new consumers who are crypto holders eager to spend their digital money.
This article explores three surprising payments you can make using your digital assets in 2021.
1. Invoices
Businesses are consumers and need to pay their bills as well. And, now they can do so using their digital money instead of fiat money.
Welcome to 2021, the year when the traditional wallet is slowly losing its relevance due to the increasing number of digital transactions. Electronic cash isn’t new, but digital money that allows instant, secure, cheaper, and pseudonymous transactions, that’s an exciting addition to the payment ecosystem.
Virtual assets are very powerful financial tools, and they are game-changers in the payment industry. They are decentralized, meaning that customers and merchants can transfer money between one another without their transactions having to go through banks. They also ensure a high level of privacy, requiring no personal data. What’s more, with the need for authorization and wait periods being eliminated, crypto transactions are almost instant.
Business can pay their invoices to merchants who accept crypto payments on website instantly, privately, and with significantly lower fees and transaction costs, without a third-party authority such as a bank managing the transaction.
2. Donations to charity
Doing good can also be done with crypto money these days. More and more charities worldwide accept donations in the form of digital money.
Save The Children, The American Red Cross or Action Against Hunger are only a few examples of the large charities and international aid agencies who accepts bitcoin as payment in us, plus many other digital coins. These charity organizations have set up mechanisms to accept crypto transactions or are using platforms that help them convert digital money into cash as soon as they get them.
Crypto offers a safe, fast, and transparent ecosystem for nonprofits and charities to fundraise. Donations in cryptocurrency can be more convenient for an international aid organization looking to attract donors from all around the world. It simplifies the task of sending the money to a particular country, making the transactions instant, and removing the huge fees and exchange costs that donors would have to pay to support a cause they believe in. Cryptocurrencies also make an attractive asset to donate because it allows donors to bypass the capital gains tax. If they had to convert the digital assets into cash before giving them away, they would be subject to that tax. This would mean less money for their selected charity. Thus, it is more convenient for charities to accept crypto payments on website.
What’s more, the underlying blockchain technology can enable the organization to track exactly how the cryptocurrency is being used.
3. Groceries
Today, you could buy a delicious burger from Burger King or a bucket meal from KFC. Yes, that’s right! Burger King and KFC accept payments in Bitcoin and other crypto coins for their delicious food. So does Starbucks for its drinks and goods. This is a clear sign that your digital money can be money you use for food and other essential supplies.
Even if your local grocery store doesn’t accept crypto payments (just yet), you can use third-party services to pay with crypto. Third parties basically turn your crypto money into fiat money, allowing you to make payments with your digital coins and give them practical, everyday use.
Big retailers like Walmart have hired cryptocurrency talent to discuss innovative ways of using Blockchain. Walmart has a long history of implementing cutting-edge tech to improve its customers’ experiences. And, offering consumers the possibility to use their digital assets to buy food is undoubtedly a way to refine their buying experiences.
Another essential example that cryptocurrencies will soon be accepted to buy groceries comes from Croatia’s largest supermarket chain. Konzum announced that it plans to expand its crypto payment option to its physical chain stores soon. The supermarket chain already allows consumers to use crypto to buy groceries, hygiene products, and household supplies on its online store. It seems that the same option will soon be available for consumers shopping in its physical stores as well.
The opportunity to use cryptocurrency as a mean to buy food and everyday necessities is far from being mainstream just yet. It all comes down to how many retailers will accept payments of crypto through credit cards on website and physical stores. However, some steps have already been taken in that direction, and crypto holders will almost surely be able to use their digital money to pay for things as basic as everyday groceries.
